Telecommunications services provider Cable & Wireless Jamaica (C&WJ) has since August 1, reduced by 30 per cent, its high-speed dedicated Internet rates, a move which the company says is intended to reward customers, rather than a response to pressure from them.

With the reduced rates, corporate customers will pay up to $60,000 per month less, depending on the specific service they buy from the utility.

In a press statement announcing the rate reduction, C&W stressed that residential Internet rates will remain the same. Additionally, the new rates are not for re-selling.

"This latest reduction in rates is in keeping with the company's continuing commitment to pass on to our customers, the benefits of improved efficiencies and investment in new technologies in order to facilitate savings, growth and enhanced productivity," says Lloyd Distant, C&W's vice-president of corporate affairs and business.

Last month, C&W was criticised by some members of the industry, including the regulatory agency - who claimed that the firm was engaged in uncompetitive practices. C&W has stoutly rejected these claims.

Additionally, the utilities regulator - the Office of Utilities Regulation (OUR) - had previously expressed concern over the prices at which C&W offered Internet service. It charged that C&W's rates were higher than those charged in neighbouring territories.

But yesterday, Errol K Miller, head of communications at C&W, stressed that the company was acting on its own volition in chopping prices to its commercial clients.

"The two things have totally no connection," Miller told the Observer. "The two things are totally unrelated."

With the new rate structure, corporate customers will pay US$1,050 (J$61,000) per month, plus an access charge ranging between J$7,000 to J$37,000 for 128 Kb connection. This is twice the speed of regular dial-up.

For the fastest service, corporate customers will pay US$6,124 (J$373,500) per month plus an access charge ranging from J$50,000 to J$168,000, for 1544kb or T1 service - which is 27 times the speed of dial-up.

In addition, for the month of August, customers who sign up for dedicated Internet service (DIA) or upgrade to higher DIA bandwidth, on a minimum one-year contract, will pay no installation and upgrade fees - a further saving of up to US$1,000.

DIA is a broadband Internet service ideally suited for corporate entities which require constant, high-speed connection to the Internet to support business operations.

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