Jobs at risk as BTC looks at cost cuts
is considering cutting some of its lines of business.
A decision to make cuts could mean a loss of about 100 staff according to a source, who did not want to be named. He said the company was going to stop providing repair service for problems with wiring inside homes and buildings.
In response a BTC spokesperson said the company was reviewing its lines of business and no decision had been made yet on what will be done.
"Like any prudently managed company BTC is reviewing all of its business lines and cost centres to assess long term profitability and viability,'' she said. "We do anticipate exiting some lines of business and wherever possible redeploying any affected manpower. No decisions have been made or figures given as to the potential impact.'' Halting repair service to buildings will mean consumers will have to phone private electricians or outside contractors to do the work if BTC determines there is no problem with its wiring outside a building.
Since deregulation of the Bermuda telecommunications sector BTC is gearing up to face competition in the local market from Quantum Communications Ltd. and in the cellular telephone service market from Bermuda Digital Communications Ltd.
BTC's revenue is further being affected by a Government directive that local carriers BTC and Quantum Communications reduce their fees for passing on calls to long distance carriers to 15 cents from 27 cents a minute on January 1, and to 10 cents a minute by July 1.
In an attempt to make up the anticipated loss of about $10-million in revenue from the international carriers BTC has applied to increase domestic service charges.
"The recent directive from the telecommunications minister which had a major impact on the company's revenue further highlights the need for this critical process,'' the spokesperson said.
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