C&W bids to lower long distance rates
Cable & Wireless Bermuda (C&W) is proposing bonuses for its long distance callers.
The moves include a rebate as well as a wider window for existing lower long distance rates.
A six percent rebate on international telephone calls would apply to June, July and August.
Changes to discount and economy rates apply to calls to the US, UK, Canada and Ireland.
The telecommunications company wants to adjust its economy and discount calling times to "make it easier for customers to take advantage of lower priced rates to the US, UK, Canada and Ireland'', it said.
But the proposed changes come only about a month before new rival long distance company TeleBermuda International Ltd. is supposed to start operations, breaking C&W's monopoly.
C&W's proposals are subject to Telecommunications Commission approval.
TeleBermuda director Jeff Conyers said that the commission has a responsibility to ensure that what C&W is doing is not predatory pricing.
Government said in its 1996 position paper, "The Establishment of a Regulatory Structure to Support Competition in Public Telecommunications Services in Bermuda'', that it must guard against predatory pricing.
"The commission will look at every request and judge it on its own merits,'' Mr. Conyers said.
Technology Minister John Barritt had no comment yesterday.
"This is the first I've heard of the C&W proposed changes. I do not wish to, or want to, be seen to be influencing the decision of the telecommunications commission,'' he said.
"These changes are consistent with our mission statement to constantly improve the range, quality and value of services to our customers,'' C&W manager marketing and corporate affairs Edgar Dill said.
"We have been able to reduce the cost of international calls several times in recent years, most recently in January of this year, while at the same time passing on those savings to our customers.
"These changes follow that pattern.'' He also said that the proposed changes will "enable our customers to make their overseas calls at more sociable times while still taking advantage of the lower rate structures''.
Last month, C&W launched a lawsuit against Government and TeleBermuda.
Telephone rates The suit questions the validity of TeleBermuda's telecommunications licence.
C&W claims it was not given three years notice of competition under the Cable & Wireless Public Limited Company Act.
Also last month, C&W lawyers wrote to the Bermuda Telephone Company Ltd.
charging the domestic carrier would be in breach of contract if it connected TeleBermuda's international calls.
TeleBermuda president and CEO Michael Kedar could not be reached for comment.
TeleBermuda had hoped to commence offering long distance telephone services at the end of April but C&W currently remains the lone provider of international telecommunications in Bermuda.
On the rate changes, C&W said the current discount rate of 90 cents per minute for calls from Bermuda to the US kicks in at seven p.m. At 11 p.m., the economy rate of 75 cents per minute begins and continues to seven a.m. The same time periods apply on weekends.
Under the proposed change, the 90 cent per minute discount rate will start at six p.m. and the 75 cent per minute economy rate will begin two hours earlier at nine p.m. and end at seven a.m.
On Weekends, the discount rate will apply all day between seven a.m. and nine p.m. with the economy rate remaining from nine p.m. to seven a.m.
For calls to the UK and Ireland, the discount rate of $1.25 per minute currently extends from six p.m. to seven a.m. with no change on weekends.
Under the proposed change, the discount rate will kick in at three p.m. and extend to nine a.m. the following day and will be in effect all day on weekends.
Calls from Bermuda to Canada are charged the current discount rate of 95 cents per minute from nine p.m. to seven a.m.
Under the new system, this period will be extended to six p.m. through ten a.m. Monday through Friday and will be in effect all day on weekends.
C&W will officially gazette the changes today and tomorrow.
