Call Tariffs and Pricing for Telecom Resellers

How tariffs are structured in a billing platform decides how much work each price change takes and how easily a charge can be explained afterwards. In SAFE, the price of each call comes from a defined resolution order, from the most specific tariff to the most general, with per-class markups available where a full tariff would be unnecessary.

This guide sets out that order, when markups are the better choice, and how fixed fees, discount plans and annual price increases sit alongside call tariffs.

Key Takeaways

• SAFE resolves each call’s price in a fixed order: feature tariff, number tariff, number class markup, customer default tariff, customer class markup, then a default tariff for the carrier and number type
• Per-class markups price calls as a percentage on wholesale cost, so retail rates follow carrier rates without a tariff for every customer
• A tariff’s fallback markup prices traffic that would otherwise be left unrated at billing time
• Fixed fee tariffs and discount plans handle rentals, bundles and inclusive allowances on the same invoice
• From 17 January 2025, in-contract price rises for residential and small business customers must be stated in pounds and pence at the point of sale

Key terms in this article

What is a per-class markup?

A per-class markup is a percentage added to the wholesale cost of calls in a call class, such as UK mobile or international, to set the retail price without a tariff. In SAFE it can be set on a number or on a customer.

What is a fallback markup?

A fallback markup is a percentage a tariff applies to traffic that has no matching rate, so a call that would otherwise remain unrated is still priced at billing time.

How SAFE Rates a Call

When a call record is processed, SAFE allocates it to the customer who owns the number, then works through the tariff resolution order until it finds a price:

1. Feature tariff: a tariff on the feature, or its linked standard feature, for that call class
2. Number tariff: a tariff on the number for that call class
3. Number class markup: a per-class markup on the number, applied directly to wholesale cost
4. Customer default tariff: the customer’s default tariff for that call class, where it is compatible with the call’s carrier and number type
5. Customer class markup: a per-class markup on the customer
6. Default tariff: a tariff marked as the default for the carrier and number type, choosing customer-specific, then customer group, then general

If none of these produces a price, the call stays unrated until billing, when the fallback markup applies. Unrated calls are listed in the pre-billing report, so they can be corrected before invoices are produced. The tariff documentation describes each step.

Because each rated call records which step produced its price, a later query about the charge can be traced back to the tariff or markup used. Our post on explaining a call charge covers that from the customer-service side.

When to Use Per-Class Markups

A per-class markup prices a call class as a percentage on the wholesale cost reported by the carrier. It suits:

• groups of customers who all receive the same margin
• call classes where you do not need to publish a per-minute rate
• carriers whose wholesale rates change often, where you want retail prices to follow

Full tariffs remain the better choice where a customer has agreed specific per-minute rates, or where you need retail prices to stay fixed when wholesale costs change. Many resellers use both: tariffs for the main call classes and markups for the rest.

Fixed Fees and Recurring Charges

Call charges are only part of most invoices. Line rental, handset and equipment charges, features such as voicemail and call recording, and support packages are billed through fixed fee tariffs and features, alongside call tariffs on the same invoice. The billing run picks up both together.

Discount Plans and Bundles

Discount plans handle usage included in a monthly price:

• Inclusive allowances: a set number of minutes each month, with usage beyond the allowance charged at tariff rates
• Tiered discounts: lower rates as usage increases
• Destination-specific allowances: minutes that apply only to particular call classes

Each call records which allowances were considered and why one applied or did not, which helps when a customer queries whether a call should have been included.

A Worked Example

A business customer with 10 lines might be set up like this:

Item	Monthly cost
10 x line rental at £8.00	£80.00
UK landline calls (500 inclusive minutes, then 1.5p/min)	varies
UK mobile calls at 4p/min	varies
International calls at tariff rates	varies
Call recording (3 lines) at £3.00/line	£9.00
Fixed monthly total	£89.00 + calls

In SAFE that would be a call tariff for UK and international rates, a discount plan with a 500-minute UK landline allowance, and fixed fee items for line rental and call recording. Each billing run rates the month’s calls and adds the fixed charges.

Annual Price Increases

SAFE’s price increase tools apply percentage increases to call tariffs, fixed fee tariffs and standard features. An increase given an effective date is scheduled, and can be reversed until that date.

How far an increase can be applied depends on each customer’s contract. Since 17 January 2025, new and renewed contracts with residential and small business customers must set out any in-contract price rise in pounds and pence at the point of sale, rather than as an inflation-linked or percentage term. A rise the contract does not set out that way is a contractual modification, with notice and a right to exit. Our pounds-and-pence guide covers Ofcom’s General Condition C1 in detail.

For SIP trunks, hosted PBX seats and bundled minutes, see our SIP trunks and hosted PBX billing guide.

Points to Check

• Coverage of every call type. Non-geographic, premium rate and directory enquiry calls need rates or markups; otherwise they fall to the fallback markup or stay unrated.
• Number of custom tariffs. A separate tariff for every customer is hard to maintain. Customer-level markups and shared tariffs with overrides keep changes manageable.
• Margins after wholesale changes. Where retail rates are fixed in tariffs, review them when carrier rates change. The Margin Watch report finds records billing below their carrier cost.

Further Reading

The tariffs section of the user guide is a practical starting point, and the pricing and tariffs documentation covers every option. To review how your current price list would map onto SAFE, arrange a demonstration.