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Rates and competition

plans to raise local telephone rates.Having been told to cut its interconnection rates with international telecommunications companies in half, the company understandably wishes to recoup lost revenues.

plans to raise local telephone rates.

Having been told to cut its interconnection rates with international telecommunications companies in half, the company understandably wishes to recoup lost revenues.

And because local rates have always been subsidised by the high rates it charged for overseas calls, it is not surprising that BTC would look there to make up the shortfall in an area where it has been undercharging.

But it is not surprising either that many residents are up in arms over the proposal, or that there is particular concern about senior citizens, many of whom are already living on tight budgets and rightly see the telephone as a lifeline. As Major Albert Benjamin noted in a recent letter to the Editor, this is an extraordinary way to mark the Year of the Older Person.

To make things more complicated, the unions are worried about the prospect of job losses or reduced work weeks for their members as BTC is saying that these are the only options if it is not allowed to increase rates.

No-one wants to see jobs go or employees' incomes reduced, but consumers also have the right to ask if they should be subsidising a company for its inability to adapt to changing times.

It is true that BTC lowered international charges a year ago after talks with the Telecommunications Commission but it is not clear if some of its controversial restructuring in the past has really resulted in lower costs.

As all of Bermuda has benefited from local charges over the years, there should be little disagreement that rates should rise. The big questions are how much they should rise by and what else BTC is doing to cut costs.

BTC should also beware of holding a gun to the heads of either its employees or its customers. Consumers have choices and BTC's clients will vote with their feet and go elsewhere if they feel they are being overcharged or underserved.

GETTING ON BASE EDT Getting on base The visit of British Labour Party Parliamentarians to Bermuda appears to have paid some dividends.

Lord Ashley's announcement that he will ask the Foreign and Commonwealth Office to push the United States to meet its responsibilities on the former Base lands should at the least heighten Bermuda's profile in Whitehall.

While it does not mean that the US will do anything to deal with the Base lands, it does at least mean that Bermuda has friends abroad who can help the Island to make its case.

As an added bonus, Lord Ashley's promise to help the Bermuda Land Development Company find tenants for Southside should also help: If good tenants can be found it should prove to be an economic boon for the Island and will help the Base lands fulfil their potential.

Visits of this kind are vitally important as they help overseas officials see for themselves the challenges that Bermuda faces. They help to dispel preconceptions and to show people that Bermuda is successful but also needs support in certain areas where our size and lack of influence hurt us.