• Post category:News

Interconnection Rate Review Decision
Press Release, June 20, 2014

Today, the Turks and Caicos Telecommunications Commission released Telecommunications Decision 2014-4 which establishes a new “Interconnection Rate” plan regulating the wholesale rate that Lime, Digicel and IslandCom Communications will be allowed to charge each other for terminating mobile and fixed telecommunications services over the course of the next three years. The Commission has recommended to Cabinet that regulations be amended to introduce the planned new rates. The new rates are expected to come into effect on July 1, 2014.

Interconnection Rates, which are subject to regulation in many Caribbean as well as other countries, are the rates carriers charge each other for terminating telecommunication services on their respective networks.

Under the plan established by the Commission, the maximum permitted rate for mobile call termination will be reduced, in a graduated manner, from the current level of US $0.0850 per minute to US $0.0750 per minute after July 1, 2014, to US $0.0675 per minute after March 31, 2015, and to US $0.0600 per minute after March 31, 2016 (in each case, adjusted on a pro rata basis for units of less than a minute).

Fixed call termination will be reduced, in a graduated manner, from the current level of US $0.0300 per minute to US $0.0220 per minute after July 1, 2014, to US $0.0195 per minute after March 31, 2015, and to US $0.0170 per minute after March 31, 2016 (in each case, adjusted on a pro rata basis for units of less than a minute).

Transit call termination will be reduced, in a graduated manner, from the current level of US $0.0150 per minute to US $0.0110 per minute after July 1, 2014, to US $0.00975 per minute after March 31, 2015, and to US $0.0085 per minute after March 31, 2016 (in each case, adjusted on a pro rata basis for units of less than a minute).

The reduction in the Interconnection Rates is in harmony with world trends in the telecommunications industry and will foster stronger competition among the carriers. It should also result in lower prices for calls across local telecommunications networks.

The Chairman of the Commission, Mrs. Heather Allen, stated that: “We are very pleased that the Commission was able to continue with pricing reforms that will benefit all Turks and Caicos Islanders, and in these difficult economic times, provide some relief from price increases that are hitting so many essential services. The Chairman added: “The Commission will continue to strive to motivate improvements in services from the telecom sector, and to press the operators to ensure that TCI leads in the region in terms of the availability of state-of-the-art new digital communications services demanded by consumers and businesses as well as by global visitors and businesses seeking to invest in our country.”

The Turks and Caicos Telecommunications Commission is responsible for regulating the telecommunications operators in Turks & Caicos Islands, as set out in the Telecommunications Ordinance of 2004. The Commission is charged with maintaining effective and fair competition in the telecom sector that will benefit consumers and to ensure that rates, conditions and quality of the services provided to consumers are reasonable, bearing in mind that the operators are private businesses with a right to a fair profit on their investments. We are also responsible for managing the radio waves and the use of the radio spectrum by the cellular operators, radio and television stations, private radio systems used by businesses and industry etc., and making sure that the users do not interfere with the radio frequencies assigned to others.