(Jamaica Gleaner) In a major decision by the Office of Utilities Regulation (OUR) on Thursday, the regulatory body approved a mobile termination rate (MTR) of J$1.10 effective July 1, which will see consumers benefitting from a sharp decline from the current J$5.00 per minute.
Fast on the heels of the OUR’s decision, the two dominant mobile providers, Digicel and LIME, both signalled that they would be slicing their rates to consumers. However, no specific rate cuts have been put on the table by the two companies at this time.
At the current J$5-per-minute MTR, cross-network rates – from one provider to another – stand at a high of J$14 per minute and a low of J$6.99.
Digicel’s announcement came during a hastily called press conference at its downtown Kingston headquarters where it divulged that it would be throwing down the gauntlet and taking on LIME in launching a land-line network using wireless technology.
In a press release yesterday evening, LIME described the OUR’s move as a landmark decision for consumers.
Garfield Sinclair, chief executive officer (CEO) of LIME, said: “Today is a historic day for Jamaican consumers who are poised to benefit from reduced calling rates. This move by the regulator will help to establish Jamaica as a mature mobile market and enable LIME to stay ahead as ‘champions of value’.”
At the same time, Digicel CEO Barry O’Brien said he was happy with the regulatory body’s decision.
“The ruling came out 2:30 today (yesterday afternoon) and the team is feverishly working to come up with plans, and we are going to hear them in the coming weeks, and Digicel will be passing on significant parts of the value (to consumers),” O’Brien said.
In outlining its verdict, the OUR said: “Although the model (it used) produced an MTR (mobile termination rate) that is increasing in each period, the Office is of the view that it would be simpler to have a single MTR over the review period.
It further stated: “The calculated pure LRIC (long-run incremental cost) rate for 2017, which is the last reset period for the MTR, is J$1.059 per minute. The Office, therefore, determines that the MTR for the applicable five-year period is J$1.10 per minute.”
The OUR said the mobile termination rate of J$1.10 would last until June 30, 2018, unless adjusted sooner on the basis of a particular provision in Section 33 (3) of the OUR Act. The MTR is to be charged on a per-second basis.
Meanwhile, Digicel’s O’Brien said his company would be taking on its main competitor in the land line market, beginning in July.
“We are going to have this launched in the next two months and we are going to aggressively compete in land lines as we have done in mobile,” O’Brien asserted.
