fp Turks and Caicos

A change in Turks and Caicos Islands telecommunications laws should bring down prices for LIME and Digicel customers when they call people on other networks.

The high price of calling another network comes from charges called mobile termination rates (MTR). That’s the amount that LIME and Digicel charge to call another network.

That charge is 1 cent or less per minute in the United States and other countries, but it can be up to 15 cents per minute in the TCI, one of the highest rates anywhere.

The governor’s Advisory Council recently supported a recommendation from the Telecommunications Commission to reduce the maximum allowable MTR, and to enable the commission to set MTR in the future.

Beginning April 1, the most companies can charge each other is 11 cents per minute. That drops to 9.75 cents per minute in 2012 and 8.5 cents in 2013.

LIME CEO Drexwell Seymour said the reduction is very positive for the TCI.

“From the inception of the liberalization of the telecommunications industry, LIME always favoured lower MTR rates,” Seymour said. “As a result of the reduction in the MTR rates, our fixed line rates to all mobile carriers will be reduced by a further 4 cents effective April 1, 2011, reducing our fixed to mobile rate from 40 cents to 36 cents.”

“LIME will continue to ensure that its customers benefits from any savings achieved,” he said.

Digicel TCI CEO E.Jay Saunders said, “Digicel TCI supports the Commission in its desire to bring more value to the mobile marketplace. Our customers have always received the best products and services at the best value, and we look forward to being able to give them even more value.”

While the change will affect customers of LIME and Digicel, Islandcom says its customers already receive a low rate since they do not charge MTR.

“We have never charged more for a calls to another carrier, like Digicel and LIME do,” said Islandcom CEO Kate Bonner. “Islandcom already offers free calls to all Islandcom customers, since there is no termination fee within our network, passing on the savings to consumers in the TCI.”