Interconnection rates drop

There has been another shake-up in the telecommunications sector in Barbados.

Less than a week after approving the Cable & Wireless (C&W) buyout of Columbus Communications Inc, the Fair Trading Commission (FTC) has handed down a decision on the long-standing dispute regarding the Long Run Incremental Cost (LRIC) interconnection rates that telecoms companies pay to connect to the C&W network.

The regulatory body said today that, after an extensive study, fixed transit rates would move from $0.022 to $0.010 per minute; and fixed termination and mobile transit would both attract new rates of $0.011 per minute, moving from $0.030 and $0.022 per minute respectively.

Meanwhile, mobile termination will attract a new rate of $0.055 per minute, down from $0.255.

“This decision was made after the Commission completed a detailed review of interconnection costs. It required Cable and Wireless (Barbados) Limited, the dominant telecommunications provider, to develop the LRIC model based on costs that an efficient operator would incur in providing interconnection services to other telecommunications providers,” the FTC said.

The Commission said it determined that the new, reduced wholesale interconnection rates would be implemented using “a glide path, whereby 60 per cent of the reduction will be effective May 1, 2015 and the remaining 40 per cent reduction will be applied on April 1, 2016.”

The regulatory agency said that the provision of interconnection services based on the costs of an efficient operator was widely recognized as “an essential requirement for the creation of a competitive telecommunications market, as operators must terminate calls on each other’s network and, similarly, receive calls originating on another operator’s network”.

The issue dates back to 2010 when the FTC determined that C&W should undertake an LRIC study to determine interconnection costs and tariffs.

13 Responses to Interconnection rates drop

  1. Wayne P Hoyte
    Wayne P Hoyte April 2, 2015 at 5:23 am

    hmmmm

    Reply
  2. Chyna Catwell
    Chyna Catwell April 2, 2015 at 5:48 am

    I don’t understand.

    Reply
  3. Elissa Hold
    Elissa Hold April 2, 2015 at 5:48 am

    hmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

    Reply
  4. Jason Lewis
    Jason Lewis April 2, 2015 at 6:04 am

    cheaper interconnection rates not bad !!

    Reply
  5. Kingdom Hearts
    Kingdom Hearts April 2, 2015 at 6:43 am

    We should see a drop in rates we pay when calling cell to cell , cell to land line and land line to cell across the board

    Reply
  6. Andrew The Voice April 2, 2015 at 6:47 am

    Want to hear more about other competition for mobile and broadband access carriers here in Barbados.
    Because of the LACK of competition, one have to put up with crappy service with NO recourse.
    Looks and smells like the consumers loose again.

    Reply
  7. Allan B Love
    Allan B Love April 2, 2015 at 7:12 am

    Phone rates r to expensive …Need more phone companies so the people can have choices

    Reply
  8. Tony Webster April 2, 2015 at 7:51 am

    Hoooray for that nice boss-lady at F.T.C.!!
    Next: Let there be light and power evahwhere!!

    Reply
  9. Jason Cayenne
    Jason Cayenne April 2, 2015 at 12:44 pm

    Members of parliament wrote this article?

    Reply
  10. Carl Harper April 2, 2015 at 5:22 pm

    The FTC needs to go a step further and allow for mobile number portability, where a customer can take his/her number from one mobile provider to the other.

    Also mandate mobile companies to allow free Digicel-to-Digicel or LIME-to-LIME calls, and only charge for across network calls.

    Reply
  11. Joel C. Payne
    Joel C. Payne April 2, 2015 at 7:27 pm

    Then what? Back up in two years to make up for the savings?

    Reply

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