Latest Mobile Telecommunications Dispute Resolved

Alee Fa’amoe

Monday, August 2, 2004

The Information & Communications Technology Authority (ICTA) announced last Friday that in negotiations over the past several weeks, the three current mobile telephone service providers, AT&T Wireless, Cable & Wireless (C&W), and Digicel, resolved a number of issues.

The press release noted that the three providers were able to reach agreement on mobile termination rates, the rates which companies pay each other for terminating calls on each other’s networks.

“This negotiated settlement of an issue that had previously been submitted to the Authority for its resolution is an important milestone in the development of the ICT market that should lead to more stable prices for the consumer,” the press release stated.

The announcement of the settlement included the news that Cable & Wireless has introduced restructured postpaid mobile service plans that are more closely tailored to their customers’ usage patterns.

In response to previous issues dealing surrounding the providers, the press release stated, “No complaints of anti-competitive conduct have been filed with the Authority. The Authority has also determined that all its previous directives to Cable & Wireless concerning its mobile services have either been satisfied or are no longer relevant.”

Cable & Wireless’ Vice-President of Broadband, Alee Fa’amoe, said that C&W is pleased that a resolution has been attained. “All the parties involved are happy with the mobile termination rates. This has been hanging over our heads for a while.

“C&W has adjusted its rates in response to an analysis we did on usage. We wanted to give people more bang for their buck, especially since many consumers had more minutes than they were actually using,” he said.

In Mr Fa’amoe’s view, all parties were trying to make mobile phone rates more streamlined in order to benefit the consumer. The bottom line for all parties focused upon ridding this market of uncertainty. “Stability is good for consumers, providers, and regulators. After many nights working past midnight, I’m sure all parties are breathing a sigh of relief,” he said.

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