
C&W hikes cross-network rates
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Wednesday, March 19, 2008
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Cable & Wireless has scrapped its heavily promoted 'Anyone 10/8' plan and raised the cost of calls to other cellular providers to keep up with the more expensive Digicel.
Under the new 'One Rate' plan, calls to non-C&W mobiles have increased by 50 per cent to $12 per minute during peak hours and 20 per cent off-peak.
According to Errol K Miller, C&WJ vice president corporate communications and corporate affairs, the move was prompted by the "the reality" of the cost of termination rates of other networks.
"The change in this rate recognises the reality of the amount that our company has to pay out to the competing network on which the call is terminated," replied Miller to questions emailed by the Business Observer.
Previously under its heavily promoted 10/8 plan, customers could call those on the other local networks of MiPhone and Digicel for $2 more per minute than the $8 charged to call C&W landlines and mobiles - a rate which remains unchanged. Calls to Canada, the United States and United Kingdom landlines have been cut from $18 to $15.
Under the Anyone plan, C&W would likely have been losing significant inter-network revenue compared to the larger Digicel network which charges $17.70 and $15.80 to call other networks during peak and off-peak hours respectively. Digicel has reported 1.8 million cellular customers in Jamaica, compared to C&W's 650,000. "Basically to further simplify calling charges - one rate; any time, no peak; no off peak," said Miller.
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