C&W, the only provider of fixed-line telephone service, declined to say what flat rate it has asked the Office of Utilities Regulation (OUR) to approve, but Evans Garricks, the company's senior vice president for retail and residential services, said consumers had indicated in surveys that a rate of 60 cents per minute would be tolerable.

"Ultimately, rates will reflect what consumers think are competitive rates and what they are comfortable with," Garricks told the Observer.  "They considered 60 cents per minute very acceptable and thought the move towards one rate across the island a very good initiative to pursue in Jamaica."

Currently, Cable and Wireless charges its fixed-lines customers 60 cents a minute for intra-parish calls made between day-time hours - the peak period - and 46 cents per minute when reduced during weekends and evenings.  Inter-parish rates are $1.10 per minute at peak period and $1 for off-peak.

Garricks said that he could not "preempt the OUR" on the rate proposals, but argued that although the removal of the lower intra parish charge would mean a higher rate for local calls made in peak hours, overall usage would lead to "a reduction in call costs for customers".

"Customers would see a reduction in call cost based on usage," Garricks explained.  "If we [CWJ] remove the intra-parish calls, then calling within the boundaries of Kingston might see an increase during peak hours.  But there is a reduction on call cost if you are calling outside the parish during the day."

Intra-parish rates would not raise to cost of calls between parishes, he said.

Since full liberalisation of Jamaica's telecoms market in 2003 Cable and Wireless has undergone several changes, including loss of market share in mobile services.  Digicel, the Irish-owned mobile phone company that has expanded across the Caribbean since its launch in Jamaica four years ago, claims the lion's share of the estimated two million cellular phone users reported in 2005.

At the same time, C&W has reported a reduction in the number of fixed line customers over the financial year ending in March 2005, losing approximately 50,000 customers over the period.  It currently has 450,000 customers islandwide.

However, the company this month shifted focus towards the provision of broadband services islandwide, committing itself to bringing broadband to 50,000 homes by the end of the fiscal year.

Garricks believes the equalisation of rates will allow the company to roll out new services and solutions, a part of the company's drive to regain customer loyalty with a new level of service that the firm said would create a win-win situation for both the company and its customers.

Said Garricks: "It gives us the platform to look at other types of services and solutions, which will be able to release on top of the rate equalisation."

http://www.jamaicaobserver.com/news/html/20050825T000000-0500_86859_OBS_C_W_WANTS_SINGLE_RATE_FOR_FIXED_LINE_CALLS.asp