BTC lays out justification for proposed price hike
BTC has said it hopes to increase the cost of local calls on payphones and directory assistance because these services do not pay their way.
Yesterday reported that BTC intends to more than double the cost of directory assistance and substantially hike the cost of local calls made on payphones.
The company wants to increase the cost of directory assistance calls from 75 cents to $1.55 and payphone calls from 20 cents to 35 cents ? an increase of 75 percent ? and has put in a submission to the Telecommunications Commission to approve the price rises.
?The 640 payphones on the Island continue to lose money as maintenance costs continue to climb and call volumes continue to fall due to increasing cell phone usage,? said a spokesperson for BTC.
?BTC is required to provide this public service. The payphone call rate has not been increased since 1983.?
BTC went onto say that about eighteen months ago BTC filed a tariff increase notice requesting a payphone rate increase to $0.50 per call, ?however this was declined by the Telecommunications Commission?, the spokesperson added.
?In addition BTC is exploring other ways to generate revenues such as advertising and improving internal efficiencies to mitigate continuing losses in this business area for our shareholders while meeting the requirement of providing this public service,? he added.
?Similarly the current Directory Assistance rates do not cover the costs associated with providing this service and BTC is therefore seeking an increase to the rates. BTC is also required to provide this service.?
Two public notices were printed in on Monday in which BTC said it was looking for approval from the Telecommunications Commission.
In April 2002 BTC tried to increase the cost of payphones ? by more than doubling the cost from 20 cents to 50 cents and increasing the charge for directory assistance from 60 cents to $1.00. But these proposals were not carried through, and only directory assistance charge was increased to 75 cents.
Comments or objections to the moves have to be made within 21 days of the publication of the notice and must be sent to the commission.
The submission will now go before the Telecommunications Commission who will review the new tariffs and will make a decision within the 21 days on whether to allow the price increases.
The last time the cost of payphones rose was in July 1983, when the cost rose from ten cents to 20 cents.
