How much the rounding and call setup fee really cost?

The user often does not pay attention on the call setup fee and especially on the rounding of call durations. We compute the increase of the actual call rate caused by the rounding of call durations and by the call setup fees. The computation is done on the example of Skype for the calls to Swsiccom mobiles.

The rate for Swisscom mobiles published by Skype is equal to 0.53 CHF/min.

Skype charges 0.068 CHF (i.e. 6.8 cts) for each call setup and rounds the call durations to the next minute.

Below we give a table of 200 sample calls with randomly computed durations according to a distribution[1] which gives an average call duration equal to 2.1 minutes. This average is the statistically known mean call duration of calls to Swiss mobiles. In the green column of the table the cost is computed without considering the rounding and the call setup fee. In the red column the cost is computed as billed by Skype. The computation shows that the rounding and call setup fees raise the true communication cost from 53 cts/min to 70 cts/min! The hidden costs are often much more important than slight changes in the rates. However it is very hard for the user to compute the true cost of hidden prices. The subscriber must understand that two rates are incomparable if one uses rounding and another one is based on second-by-second billing.

Call to Swisscom mobile		Billing is second by second			Rounding to the next minute
Sequence	Call	duration (s)	m:s	price (52.8 cts/min)	rounded (s)	m:s	52.8 cts/min
#1	079-XXX-YYZZ	163	2:43	1.43	180	3:0	1.65
#2	079-XXX-YYZZ	87	1:27	0.77	120	2:0	1.12
#3	079-XXX-YYZZ	51	0:51	0.45	60	1:0	0.6
#4	079-XXX-YYZZ	32	0:32	0.28	60	1:0	0.6
#5	079-XXX-YYZZ	60	1:0	0.53	60	1:0	0.6
#6	079-XXX-YYZZ	1	0:1	0.01	60	1:0	0.6
#7	079-XXX-YYZZ	22	0:22	0.19	60	1:0	0.6
#8	079-XXX-YYZZ	635	10:35	5.59	660	11:0	5.88
#9	079-XXX-YYZZ	88	1:28	0.77	120	2:0	1.12
#10	079-XXX-YYZZ	114	1:54	1	120	2:0	1.12
#11	079-XXX-YYZZ	40	0:40	0.35	60	1:0	0.6
#12	079-XXX-YYZZ	250	4:10	2.2	300	5:0	2.71
#13	079-XXX-YYZZ	2	0:2	0.02	60	1:0	0.6
#14	079-XXX-YYZZ	57	0:57	0.5	60	1:0	0.6
#15	079-XXX-YYZZ	354	5:54	3.12	360	6:0	3.24
#16	079-XXX-YYZZ	3	0:3	0.03	60	1:0	0.6
#17	079-XXX-YYZZ	142	2:22	1.25	180	3:0	1.65
#18	079-XXX-YYZZ	89	1:29	0.78	120	2:0	1.12
#19	079-XXX-YYZZ	190	3:10	1.67	240	4:0	2.18
#20	079-XXX-YYZZ	86	1:26	0.76	120	2:0	1.12
#21	079-XXX-YYZZ	41	0:41	0.36	60	1:0	0.6
#22	079-XXX-YYZZ	3	0:3	0.03	60	1:0	0.6
#23	079-XXX-YYZZ	54	0:54	0.48	60	1:0	0.6
#24	079-XXX-YYZZ	50	0:50	0.44	60	1:0	0.6
#25	079-XXX-YYZZ	69	1:9	0.61	120	2:0	1.12
#26	079-XXX-YYZZ	305	5:5	2.68	360	6:0	3.24
#27	079-XXX-YYZZ	28	0:28	0.25	60	1:0	0.6
#28	079-XXX-YYZZ	21	0:21	0.18	60	1:0	0.6
#29	079-XXX-YYZZ	551	9:11	4.85	600	10:0	5.35
#30	079-XXX-YYZZ	151	2:31	1.33	180	3:0	1.65
#31	079-XXX-YYZZ	104	1:44	0.92	120	2:0	1.12
#32	079-XXX-YYZZ	162	2:42	1.43	180	3:0	1.65
#33	079-XXX-YYZZ	135	2:15	1.19	180	3:0	1.65
#34	079-XXX-YYZZ	58	0:58	0.51	60	1:0	0.6
#35	079-XXX-YYZZ	327	5:27	2.88	360	6:0	3.24
#36	079-XXX-YYZZ	136	2:16	1.2	180	3:0	1.65
#37	079-XXX-YYZZ	14	0:14	0.12	60	1:0	0.6
#38	079-XXX-YYZZ	110	1:50	0.97	120	2:0	1.12
#39	079-XXX-YYZZ	88	1:28	0.77	120	2:0	1.12
#40	079-XXX-YYZZ	359	5:59	3.16	360	6:0	3.24
#41	079-XXX-YYZZ	25	0:25	0.22	60	1:0	0.6
#42	079-XXX-YYZZ	82	1:22	0.72	120	2:0	1.12
#43	079-XXX-YYZZ	31	0:31	0.27	60	1:0	0.6
#44	079-XXX-YYZZ	124	2:4	1.09	180	3:0	1.65
#45	079-XXX-YYZZ	17	0:17	0.15	60	1:0	0.6
#46	079-XXX-YYZZ	88	1:28	0.77	120	2:0	1.12
#47	079-XXX-YYZZ	8	0:8	0.07	60	1:0	0.6
#48	079-XXX-YYZZ	74	1:14	0.65	120	2:0	1.12
#49	079-XXX-YYZZ	4	0:4	0.04	60	1:0	0.6
#50	079-XXX-YYZZ	23	0:23	0.2	60	1:0	0.6
#51	079-XXX-YYZZ	309	5:9	2.72	360	6:0	3.24
#52	079-XXX-YYZZ	106	1:46	0.93	120	2:0	1.12
#53	079-XXX-YYZZ	138	2:18	1.21	180	3:0	1.65
#54	079-XXX-YYZZ	156	2:36	1.37	180	3:0	1.65
#55	079-XXX-YYZZ	438	7:18	3.85	480	8:0	4.29
#56	079-XXX-YYZZ	2	0:2	0.02	60	1:0	0.6
#57	079-XXX-YYZZ	67	1:7	0.59	120	2:0	1.12
#58	079-XXX-YYZZ	88	1:28	0.77	120	2:0	1.12
#59	079-XXX-YYZZ	98	1:38	0.86	120	2:0	1.12
#60	079-XXX-YYZZ	34	0:34	0.3	60	1:0	0.6
#61	079-XXX-YYZZ	115	1:55	1.01	120	2:0	1.12
#62	079-XXX-YYZZ	92	1:32	0.81	120	2:0	1.12
#63	079-XXX-YYZZ	31	0:31	0.27	60	1:0	0.6
#64	079-XXX-YYZZ	170	2:50	1.5	180	3:0	1.65
#65	079-XXX-YYZZ	97	1:37	0.85	120	2:0	1.12
#66	079-XXX-YYZZ	42	0:42	0.37	60	1:0	0.6
#67	079-XXX-YYZZ	136	2:16	1.2	180	3:0	1.65
#68	079-XXX-YYZZ	54	0:54	0.48	60	1:0	0.6
#69	079-XXX-YYZZ	68	1:8	0.6	120	2:0	1.12
#70	079-XXX-YYZZ	294	4:54	2.59	300	5:0	2.71
#71	079-XXX-YYZZ	415	6:55	3.65	420	7:0	3.76
#72	079-XXX-YYZZ	129	2:9	1.14	180	3:0	1.65
#73	079-XXX-YYZZ	834	13:54	7.34	840	14:0	7.46
#74	079-XXX-YYZZ	24	0:24	0.21	60	1:0	0.6
#75	079-XXX-YYZZ	21	0:21	0.18	60	1:0	0.6
#76	079-XXX-YYZZ	96	1:36	0.84	120	2:0	1.12
#77	079-XXX-YYZZ	63	1:3	0.55	120	2:0	1.12
#78	079-XXX-YYZZ	67	1:7	0.59	120	2:0	1.12
#79	079-XXX-YYZZ	336	5:36	2.96	360	6:0	3.24
#80	079-XXX-YYZZ	78	1:18	0.69	120	2:0	1.12
#81	079-XXX-YYZZ	164	2:44	1.44	180	3:0	1.65
#82	079-XXX-YYZZ	25	0:25	0.22	60	1:0	0.6
#83	079-XXX-YYZZ	1	0:1	0.01	60	1:0	0.6
#84	079-XXX-YYZZ	377	6:17	3.32	420	7:0	3.76
#85	079-XXX-YYZZ	30	0:30	0.26	60	1:0	0.6
#86	079-XXX-YYZZ	134	2:14	1.18	180	3:0	1.65
#87	079-XXX-YYZZ	275	4:35	2.42	300	5:0	2.71
#88	079-XXX-YYZZ	163	2:43	1.43	180	3:0	1.65
#89	079-XXX-YYZZ	279	4:39	2.46	300	5:0	2.71
#90	079-XXX-YYZZ	184	3:4	1.62	240	4:0	2.18
#91	079-XXX-YYZZ	107	1:47	0.94	120	2:0	1.12
#92	079-XXX-YYZZ	77	1:17	0.68	120	2:0	1.12
#93	079-XXX-YYZZ	14	0:14	0.12	60	1:0	0.6
#94	079-XXX-YYZZ	87	1:27	0.77	120	2:0	1.12
#95	079-XXX-YYZZ	47	0:47	0.41	60	1:0	0.6
#96	079-XXX-YYZZ	45	0:45	0.4	60	1:0	0.6
#97	079-XXX-YYZZ	20	0:20	0.18	60	1:0	0.6
#98	079-XXX-YYZZ	189	3:9	1.66	240	4:0	2.18
#99	079-XXX-YYZZ	53	0:53	0.47	60	1:0	0.6
#100	079-XXX-YYZZ	169	2:49	1.49	180	3:0	1.65
#101	079-XXX-YYZZ	60	1:0	0.53	120	2:0	1.12
#102	079-XXX-YYZZ	65	1:5	0.57	120	2:0	1.12
#103	079-XXX-YYZZ	74	1:14	0.65	120	2:0	1.12
#104	079-XXX-YYZZ	99	1:39	0.87	120	2:0	1.12
#105	079-XXX-YYZZ	11	0:11	0.1	60	1:0	0.6
#106	079-XXX-YYZZ	97	1:37	0.85	120	2:0	1.12
#107	079-XXX-YYZZ	21	0:21	0.18	60	1:0	0.6
#108	079-XXX-YYZZ	38	0:38	0.33	60	1:0	0.6
#109	079-XXX-YYZZ	157	2:37	1.38	180	3:0	1.65
#110	079-XXX-YYZZ	326	5:26	2.87	360	6:0	3.24
#111	079-XXX-YYZZ	89	1:29	0.78	120	2:0	1.12
#112	079-XXX-YYZZ	30	0:30	0.26	60	1:0	0.6
#113	079-XXX-YYZZ	19	0:19	0.17	60	1:0	0.6
#114	079-XXX-YYZZ	472	7:52	4.15	480	8:0	4.29
#115	079-XXX-YYZZ	59	0:59	0.52	60	1:0	0.6
#116	079-XXX-YYZZ	86	1:26	0.76	120	2:0	1.12
#117	079-XXX-YYZZ	35	0:35	0.31	60	1:0	0.6
#118	079-XXX-YYZZ	144	2:24	1.27	180	3:0	1.65
#119	079-XXX-YYZZ	90	1:30	0.79	120	2:0	1.12
#120	079-XXX-YYZZ	125	2:5	1.1	180	3:0	1.65
#121	079-XXX-YYZZ	25	0:25	0.22	60	1:0	0.6
#122	079-XXX-YYZZ	234	3:54	2.06	240	4:0	2.18
#123	079-XXX-YYZZ	41	0:41	0.36	60	1:0	0.6
#124	079-XXX-YYZZ	38	0:38	0.33	60	1:0	0.6
#125	079-XXX-YYZZ	89	1:29	0.78	120	2:0	1.12
#126	079-XXX-YYZZ	91	1:31	0.8	120	2:0	1.12
#127	079-XXX-YYZZ	2	0:2	0.02	60	1:0	0.6
#128	079-XXX-YYZZ	196	3:16	1.72	240	4:0	2.18
#129	079-XXX-YYZZ	136	2:16	1.2	180	3:0	1.65
#130	079-XXX-YYZZ	187	3:7	1.65	240	4:0	2.18
#131	079-XXX-YYZZ	300	5:0	2.64	360	6:0	3.24
#132	079-XXX-YYZZ	49	0:49	0.43	60	1:0	0.6
#133	079-XXX-YYZZ	1	0:1	0.01	60	1:0	0.6
#134	079-XXX-YYZZ	33	0:33	0.29	60	1:0	0.6
#135	079-XXX-YYZZ	20	0:20	0.18	60	1:0	0.6
#136	079-XXX-YYZZ	49	0:49	0.43	60	1:0	0.6
#137	079-XXX-YYZZ	386	6:26	3.4	420	7:0	3.76
#138	079-XXX-YYZZ	234	3:54	2.06	240	4:0	2.18
#139	079-XXX-YYZZ	118	1:58	1.04	120	2:0	1.12
#140	079-XXX-YYZZ	202	3:22	1.78	240	4:0	2.18
#141	079-XXX-YYZZ	8	0:8	0.07	60	1:0	0.6
#142	079-XXX-YYZZ	139	2:19	1.22	180	3:0	1.65
#143	079-XXX-YYZZ	144	2:24	1.27	180	3:0	1.65
#144	079-XXX-YYZZ	19	0:19	0.17	60	1:0	0.6
#145	079-XXX-YYZZ	69	1:9	0.61	120	2:0	1.12
#146	079-XXX-YYZZ	162	2:42	1.43	180	3:0	1.65
#147	079-XXX-YYZZ	287	4:47	2.53	300	5:0	2.71
#148	079-XXX-YYZZ	73	1:13	0.64	120	2:0	1.12
#149	079-XXX-YYZZ	85	1:25	0.75	120	2:0	1.12
#150	079-XXX-YYZZ	27	0:27	0.24	60	1:0	0.6
#151	079-XXX-YYZZ	506	8:26	4.45	540	9:0	4.82
#152	079-XXX-YYZZ	63	1:3	0.55	120	2:0	1.12
#153	079-XXX-YYZZ	243	4:3	2.14	300	5:0	2.71
#154	079-XXX-YYZZ	32	0:32	0.28	60	1:0	0.6
#155	079-XXX-YYZZ	240	4:0	2.11	300	5:0	2.71
#156	079-XXX-YYZZ	104	1:44	0.92	120	2:0	1.12
#157	079-XXX-YYZZ	45	0:45	0.4	60	1:0	0.6
#158	079-XXX-YYZZ	115	1:55	1.01	120	2:0	1.12
#159	079-XXX-YYZZ	8	0:8	0.07	60	1:0	0.6
#160	079-XXX-YYZZ	10	0:10	0.09	60	1:0	0.6
#161	079-XXX-YYZZ	11	0:11	0.1	60	1:0	0.6
#162	079-XXX-YYZZ	72	1:12	0.63	120	2:0	1.12
#163	079-XXX-YYZZ	47	0:47	0.41	60	1:0	0.6
#164	079-XXX-YYZZ	121	2:1	1.06	180	3:0	1.65
#165	079-XXX-YYZZ	44	0:44	0.39	60	1:0	0.6
#166	079-XXX-YYZZ	218	3:38	1.92	240	4:0	2.18
#167	079-XXX-YYZZ	231	3:51	2.03	240	4:0	2.18
#168	079-XXX-YYZZ	982	16:22	8.64	1020	17:0	9.04
#169	079-XXX-YYZZ	6	0:6	0.05	60	1:0	0.6
#170	079-XXX-YYZZ	21	0:21	0.18	60	1:0	0.6
#171	079-XXX-YYZZ	15	0:15	0.13	60	1:0	0.6
#172	079-XXX-YYZZ	159	2:39	1.4	180	3:0	1.65
#173	079-XXX-YYZZ	16	0:16	0.14	60	1:0	0.6
#174	079-XXX-YYZZ	534	8:54	4.7	540	9:0	4.82
#175	079-XXX-YYZZ	141	2:21	1.24	180	3:0	1.65
#176	079-XXX-YYZZ	86	1:26	0.76	120	2:0	1.12
#177	079-XXX-YYZZ	9	0:9	0.08	60	1:0	0.6
#178	079-XXX-YYZZ	99	1:39	0.87	120	2:0	1.12
#179	079-XXX-YYZZ	11	0:11	0.1	60	1:0	0.6
#180	079-XXX-YYZZ	58	0:58	0.51	60	1:0	0.6
#181	079-XXX-YYZZ	22	0:22	0.19	60	1:0	0.6
#182	079-XXX-YYZZ	116	1:56	1.02	120	2:0	1.12
#183	079-XXX-YYZZ	119	1:59	1.05	120	2:0	1.12
#184	079-XXX-YYZZ	355	5:55	3.12	360	6:0	3.24
#185	079-XXX-YYZZ	171	2:51	1.5	180	3:0	1.65
#186	079-XXX-YYZZ	122	2:2	1.07	180	3:0	1.65
#187	079-XXX-YYZZ	3	0:3	0.03	60	1:0	0.6
#188	079-XXX-YYZZ	135	2:15	1.19	180	3:0	1.65
#189	079-XXX-YYZZ	132	2:12	1.16	180	3:0	1.65
#190	079-XXX-YYZZ	130	2:10	1.14	180	3:0	1.65
#191	079-XXX-YYZZ	11	0:11	0.1	60	1:0	0.6
#192	079-XXX-YYZZ	351	5:51	3.09	360	6:0	3.24
#193	079-XXX-YYZZ	11	0:11	0.1	60	1:0	0.6
#194	079-XXX-YYZZ	123	2:3	1.08	180	3:0	1.65
#195	079-XXX-YYZZ	66	1:6	0.58	120	2:0	1.12
#196	079-XXX-YYZZ	35	0:35	0.31	60	1:0	0.6
#197	079-XXX-YYZZ	441	7:21	3.88	480	8:0	4.29
#198	079-XXX-YYZZ	131	2:11	1.15	180	3:0	1.65
#199	079-XXX-YYZZ	222	3:42	1.95	240	4:0	2.18
#200	079-XXX-YYZZ	36	0:36	0.32	60	1:0	0.6
Total		seconds	m:s	CHF	seconds	m:s	CHF
		25266	421:6	222.33	31800	530:0	293.52
Rate				cts/min			cts/min
				52.8			69.7
		minutes
Average Call Duration (ACD)		2.1055

[xls]

Reference:

switzernet.com/public/070625-rounding-and-callsetup/

Comparison links:

The comparison charts do not consider the eventual call setup fees and rounding of durations exercised by other providers. Due to the hidden charges, the actual rates billed to the customer may be much higher than those shown on the chart (the rates are obtained from comparis.ch and are included in the chart without modifications).

switzernet.com/public/070625-comparis-voip-ch-de-fr-us-uk/

switzernet.com/public/070619-comparis-swiss-mobiles/

4z.com/public/070618-rates-mobiles/

The rates of Switzernet are not only the lowest, but they are billed to the customers second-by-second, without rounding, without call setup fee or any other hidden charges.

www.comparis.ch

www.allo.ch

*   *   *

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[1] The distribution of call durations corresponds to the distribution of call data records of real calls