Lynch
McPherse Thompson, Staff Reporter
SOME OF the telephone rates currently being charged by mobile carrier Digicel Jamaica are to be slashed by about a third, effective July 1, according to Courtney Jackson, deputy director-general of the Office of Utilities Regulation (OUR).
However, Seamus Lynch, Digicel's chief operating officer, said the company has objected to the proposed reduction in rates and has asked the regulatory agency to reconsider the issue. "If they don't, we'll have to take whatever legal action is necessary to protect the interest of the business," Mr. Lynch said.
The OUR has not disclosed the band at which they would cap the price of fixed-to-mobile telephone calls, which is the subject on contention. However, with Digicel currently charging at the maximum of $12 per minute for peak traffic, $11 for off-peak periods and $10 on weekends, the rates could be lowered to about $8 per minute at its highest.
Mr. Jackson explained that the OUR previously set the rates based on international benchmarks, which have since been reduced, and they were now proposing to review those charges based on actual cost data submitted by Cable & Wireless Jamaica (C&WJ) earlier this year. He said the OUR was re-examining its proposal based on Digicel's protests.
The deputy director-general said a reduction in the rates would only affect Digicel because it was the only of the three mobile networks in Jamaica that was priced at the maximum range. Both C&WJ and Centennial Digital Jamaica charge a flat rate of $7 per minute for fixed-to-mobile calls.
Mr. Lynch said Digicel was protesting the proposed changes on the ground that the OUR should not get involved in dealing with rates in a competitive environment.
He said a one-third reduction in the rates would also mean a cutback in the company's revenue by a third. "They shouldn't be interfering in a competitive environment," said Mr. Lynch, pointing out that the company was reviewing the US$275 million investment expected to be undertaken this year "because the rules of the games are changing."
Mr. Lynch said the OUR has proposed to reduce Digicel's rates based on information supplied by C&WJ under confidential cover. "They just take Cable and Wireless information and say they can't share it with us because it's confidential," he said.
However, the OUR said both C&WJ and Digicel have supplied information to the regulatory agency under confidential cover and hence they were not at liberty to disclose it either way.
