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Stephen Twomey, president and CEO of Reliant Enterprise Communications - a local provider of international calls -has filed a formal complaint with the United States Federal Communication Commission saying that communications giants AT&T, MCI and Sprint were involved in 'unfair competition' in the local market that had hurt his company.
Twomey's charge is that the American carriers have been selling international calls in Jamaica at rates that were below costs, and in some cases, even below the minimum termination rate set out by the Office of Utilities Regulation (OUR) - Jamaica's utilities regulator. "From August and October when the minimum rate was US1.1 cents, the market price for international minutes terminating in Jamaica was between US3.9 cents to US4.5 cents," Twomey told the Business Observer. "But in October when the minimum rate was set at US2.5 cents the market prices were dropped suddenly to US2.7 cents to US3.99 cents for direct carriers and US2.2 cents to US2.55 cents for VOIP [voice over Internet protocol] ." Twomey explained that although the prices appear to be above cost for the direct carriers, the overhead involved in originating the calls would push prices well above the level charged. Twomey also included Cable and Wireless Communications in London as a target of the complaint. Twomey first took his complaint to the OUR as well as the Anti-Dumping and Subsidies Commission (ADSC) in February, but was directed by the OUR to the Fair Trading Commission. The OUR deputy director, Courtney Jackson yesterday told Business Observer that this particular issue would not fall under the jurisdiction of the regulatory body. "I told him [Twomey] that if he had a problem with unfair trading then he should carry the matter to the Fair Trading Commission," said Jackson. The ADSC was unable to shed light on the matter, its officers citing what they said were policies against disclosing such information. "The commission is legally constrained to avoid publicising information or documents submitted to it as or in support of a complaint," said executive director, Andrea Marie Brown. "Further, because of potentially distorting impact on the marketplace, the industry is also usually well advised to refrain from advance publicity of any engagement with this commission." In his complaint, Twomey also charged that actions of the international providers significantly impaired the operation of his company. "I have been operating for two years terminating and originating international calls on mobile and fixed lines," Twomey said. "October the prices dropped suddenly and by December my fixed line operation was out of business. I only operate on mobile." http://www.jamaicaobserver.com/magazines/Business/html/20050322T210000-0500_77382_OBS_LOCAL_TELECOM_TURNS_TO_US_REGULATORS_FOR_PROTECTION.asp |
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