"The increase in rates comes as a result of a revised cap plan issued by the OUR (Office of Utilities Regulation) on January 16 and the company's continuing efforts to rebalance its rates," C&WJ said in a release.

LOCAL PHONE RATES

The increase, which amounts to 25 per cent in some cases, will affect local phone rates only.

The new rates will see monthly rental fees on business exchange lines, including PBX trunk lines, international toll free lines and direct inward dialling lines, increasing to $1,250.

Residential customers contracted on the company's standard plan will start paying $500 per month while those on the low user plan will pay $340 per month for line rental.

Previously the charge for residential customers was $400, and $1,000 for business customers.

Call waiting charges move to $54 for businesses and $30 for residences.

International rates meantime will see a five per cent downward adjustment. Direct dialled calls, except to Cuba, will be reduced to $15.75 per minute. Calls to Cuba are billed at $66 per minute.

Operator-assisted international calls to all destinations except Cuba have also been reduced to $47.25 for the first three minutes, and $15.75 for each additional minute.

The $20 surcharge on operator-assisted collect and time and charge calls remain the same.

REBALANCING

The increase in local telephone rates is a consequence of the rebalancing of Cable and Wireless' revenue mix. The move followed telecoms policy changes in the United States which effected a downward adjustment in payouts to foreign telephone companies for calls terminated on their networks.

The company used to collect US$6.50 per minute for calls coming into the island, but on January 1, 2001, that was adjusted to US$0.19.

As a result the company said it would have to increase local rates to rebalance its revenues and make up for the shortfall from the new regime.

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