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What Factors Affect the Cost of Caller ID?

Telephone companies may include caller ID as part of bundled service.
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  • Written By: Alex Tree
  • Edited By: Melissa Wiley
  • Last Modified Date: 28 September 2014
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Some factors that affect the cost of caller ID are whether the service is for a land line or mobile phone, if the feature is bought in a bundle, and local rate caps on services. In addition, competition can be a significant influence on how a business prices a service. Generally, caller ID is considered a basic service for mobile phones and is available for free, or the cost is covered by the package price.

Mobile phone packages often come with caller ID as a basic service. This service is usually rather simple; the receiver of the call sees the caller’s phone number and area code. The caller’s name is shown only if it has been saved in the receiver’s mobile phone or if the receiver has a more advanced caller ID for which a telephone service charges. On the other hand, the cost of caller ID is rarely included in land lines unless in a bundled package and must be added for an additional monthly fee.

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The cost of a caller ID can be affected by whether it is purchased as part of a bundle. Bundled services can be much cheaper than buying each service individually. Sometimes the price of bundled services goes up once the trial period ends, which can be anywhere from one month to several years. Many telephone services offer this kind of deal to attract customers and then charge more later on once the introduction period expires. In some cases, the customer has a binding contract with the telephone service to continue using the service at the higher rate and cannot legally break the contract without fees.

Sometimes phone companies are subject to local rate caps on their prices. The prices are regulated to reflect the true cost of providing such services. Regulating prices keeps a business from gouging customers. Due to this kind of regulation, a phone company might charge much less than it wishes.

Like most businesses and services, the cost of caller ID is affected by competition. If several phone companies in the area offer caller ID for much less than another company, the other company might lower its rates to attract more customers. Likewise, if the cost of caller ID increases, companies offering the same service might fall in line. Many jurisdictions do not regulate the cost of phone services because the local government believes competition will keep the cost of caller ID and other services low. Sometimes this does not work as well as expected, with the vast majority of telephone companies increasing their prices with no cap.

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