
Digital UK home phone provider Phonely, which operates a Voice over Internet Protocol (VoIP) service and also works with some broadband ISPs, has introduced a new feature that provides free Phonely-to-Phonely calls between customers. The move is said to be in response to “growing concerns that rising landline costs may discourage vulnerable users from staying connected“.
Phonely said the new free calling feature is designed to reduce the cost barrier to communication, while also helping to tackle wider issues such as loneliness and social isolation. But it should be noted that the ability to offer free calls between customers on the same platform is a fairly common feature of many fixed line phone providers, although not everybody offers it.
The free Phonely-to-Phonely calls feature is currently being rolled out to both new and existing customers of the service.
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Bryn Thompson, Director of Phonely, told ISPreview:
“Recent price increases across the telecoms sector risk adding further pressure to households already facing cost-of-living challenges. For many older adults, the landline isn’t just a convenience, it’s a lifeline.
We’re concerned that rising costs could create hesitation around picking up the phone, particularly for those on fixed incomes. By introducing free Phonely-to-Phonely calls, we want to remove that barrier and encourage people to stay in regular contact with friends and family.”
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How exciting! It doesn’t cost anything for them to do so why didn’t they do this from the start like many other providers?
If Openreach wanted to accelerate uptake of VoIP implementation, they could do worse than incentivizing operators to make VoIP to VoIP calls (including non-premium non-geographic numbers) free for domestic customers until analogue cutover is complete (i.e. 2-3 years) on all tariffs, subject to fair use. Likely not much of a cost giveaway on most tariffs.
After which operators can reassess landline call pricing (for remaining customers who have not transitioned to other free alternatives like Whatsapp and ceased outbound landline calling).
Openreach don’t need to accelerate takeup of VoIP, they’ve told their customers that the service is being withdrawn and it’s not their problem any more.
Accelerate it? The PSTN has until the end of this calendar year. Your proposal seems like a lot of effort to save a month or two.
I foresee laggards creating a crush of demand as the mandatory end date for analogue landline service approaches.
Smoothing that final rush out with a monetary call to action now would be to everyone’s benefit and will soften the perceived slight of forced change (“why is my phone company victimising me with a forced change, why are they taking my phone away”) that some people will experience.
Carrot instead of stick, better customer relations.
Openreach just provide the circuit. They have to treat all their customers the same, including those not using their broadband circuits for voice. They can’t incentivise their customers to provide free calls any more than your ISP can incentivise you to browse a website more often.
Leaving aside possible reasons why people still have not switched, that have nothing to do with call costs, it’s not Openreach’s job to subsidise the rest of the industry (to an even greater extent than they currently do).
Cost savings have already been passed on. CPs no longer have to pay Openreach for two services. VoIP services should already be cheaper for CPs to run. There are further incentives to get people onto FTTP where available. There’s also the pricing ramp as PSTN closure gets closer to really force the issue.
The deadline was already extended once and now it is time to use the stick as much as possible.
I’s my understanding that Openreach are already financially incentivizing operators (ISPs/phone companies) to progress transitions from FTTC to FTTP at a pace in some exchanges. (I seem to be a beneficiary of that incentive, with an appointment to make the change scheduled next week.)
Openreach could similarly financially incentivize operators to accelerate VoIP transition.
I seem to recall from previous articles here, Openreach plans to effectively charge “penalty pricing” to lines that have not yet transitioned to VoIP after a certain date.
In a similar way, Openreach could offer ISPs a bonus for every analogue landline that transitions to VoIP for a period of time (starting soon) and suggest that the ISP/phone company turns that into a time limited free calls discount for the customer to better minimise customer backlash of change.
I’m curious how many people will actually benefit from this conaidering they both need the service which AFAIK starts at £10pm.
For comparison, I pay £12pm with Xinix for anytime landline and mobile.
Andrews & Arnold do this on their PAYG service, as I use it only as a backup for our mobiles it usually costs less than £2 a month.
you must work for them, pretty sure I saw your comments on other articles mentioning A&A
Absolutely not, just been really impressed with their service.
“The PSTN has until the end of this calendar year” I think you will find it’s the end of the first Month of the next calendar year.
It was free 2 years ago when I had it. TalkTalk are another company to offer free calls to other TalkTalk users and have done so for many years including the former pre carrier select. It costs nothing for them and was a good marketing campaign. The Cable companies offered not so free cable to cable calls, the failed to tell people the call connection fee still applied and the free talktime only applied to off peak calls in most franchises