C&W calls for phone rates probe
Government inquiry into the pricing of long-distance telephone service.
"I can confirm that Cable & Wireless has called upon the Minister of Management and Technology to initiate such an inquiry, without delay,'' a Cable & Wireless spokesman told The Royal Gazette yesterday.
"Cable & Wireless is firmly of the belief that only an official inquiry into the question of international telephone rates will meet the concerns of the Telecommunications Commission which found that, although the quality of Bermuda's telecommunications services was very high, nevertheless those services should be available at a more competitive cost.'' The Cable & Wireless move came as a direct result of the findings of the Telecommunications Commission, which stated in its November 1994 report that, "Bermuda currently enjoys a first class, state-of-the-art public telecommunications service as provided by The Bermuda Telephone Company Ltd.
and Cable & Wireless.'' The Commission added, however, it was "firmly of the opinion that the current subsidisation of the national (domestic) service by the international service is manifestly unfair to the users of the international service, which inhibits the development of Bermuda's international business and this is the area where most complaints arise.'' While Bermudians have for years quietly accepted the cost of long-distance calling, they have done so in an environment that saw long distance de-regulation in the US bring rates there down substantially.
It was against this backdrop that local and international business leaders supported a successful application by TeleBermuda International to establish a competing long-distance service that its principles said could bring rates down some 30 percent.
Cable & Wireless and The Bermuda Telephone Company (Telco) currently share the revenue garnered through long-distance charges exclusively.
Chairman and acting general manager of Telco, Dr. James King, was unavailable for comment yesterday.
The Minister of Management and Technology, Dr. Grant Gibbons, was also unavailable for comment.