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bmobile and Laqtel sign interconnection agreement

#1 User is offline   greall Icon

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Posted 27 May 2006 - 08:28 AM

What do you guys think about this one:

http://www.tstt.co.t...icle.cfm?id=243
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#2 User is offline   Triniboi Icon

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Posted 27 May 2006 - 10:21 AM

I think this is great news seeing that they decided on a 45c rate. The dispute with Digicel was for higher than this. Let us hope that this sets a benchmark for where the rates should be.

Based on the current Digicel Rates for Post paid the "interconnection" rates range from 45c to 85 c. I say "interconnection" because their "off-net" charges are higher than their "on net" charges which is effectively an interconnect charge even though they are not paying interconnection.

I think they want to maintain these off net charges so that when interconnection does happen it does not appear as if they increased their rates.

Based on their current Post Paid rates the "interconnection" rates range from 14 c to 70 c (I am treating digi to landline as as interconnection charge).

From what I read, TSTT wants the rates to be reciprocal, meaning that digi pays the same as TSTT pays. Digi wants asymmetrical rates, meaning they want TSTT to pay a higher interconnection charge than they pay to TSTT.

If this 45c with Laqtel is an indicator for where the rates will be settled....then the interconnection charges between TSTT and Digicel should be about 45c (hopefully)
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Posted 28 May 2006 - 05:06 PM

Triniboi, on May 27 2006, 10:21 AM, said:

I think this is great news seeing that they decided on a 45c rate. The dispute with Digicel was for higher than this. Let us hope that this sets a benchmark for where the rates should be.

Based on the current Digicel Rates for Post paid the "interconnection" rates range from 45c to 85 c. I say "interconnection" because their "off-net" charges are higher than their "on net" charges which is effectively an interconnect charge even though they are not paying interconnection.

I think they want to maintain these off net charges so that when interconnection does happen it does not appear as if they increased their rates.

Based on their current Post Paid rates the "interconnection" rates range from 14 c to 70 c (I am treating digi to landline as as interconnection charge).

From what I read, TSTT wants the rates to be reciprocal, meaning that digi pays the same as TSTT pays. Digi wants asymmetrical rates, meaning they want TSTT to pay a higher interconnection charge than they pay to TSTT.

If this 45c with Laqtel is an indicator for where the rates will be settled....then the interconnection charges between TSTT and Digicel should be about 45c (hopefully)

Digi then appears not to be negotiating in good faith... :unsure:

Greg
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#4 User is offline   Triniboi Icon

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Posted 28 May 2006 - 07:00 PM

I do not think that it is question of good faith. This is business and they have to try to put forward a position that is advantageous to them.

What I would hope is that the arbitrators think about the customers first.

Digicel is in business to make money just like TSTT and Laqtel. You remember what happened with West Indies cricket? They are sponsoring the team so they do what is necessary to get the greatest business benefit from their investment.

Let us hope that it is the customer who benefits in the long run. I mean I don't think that the companies should not make money (and even lots of it too). If they make money then they are more viable and they are able to stay in business and the customers are able to benefit from their service.

Take TSTT for example, lots of ppl talk about how much money they make. But the truth is that if they don't make money they can't stay in business and they can't invest in improvements in their service.

If a company is struggling to survive then they will give increasingly worse service. Similarly for Digicel they invested money in Trinidad to make money. They have to pay for the loans they took. So they have to charge rates that will allow them to make money. They are not in Trinidad for charity.
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#5 User is offline   Trini.tk Icon

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Posted 28 May 2006 - 07:10 PM

Hey Triniboi.
Where did you read that

Quote

Digi wants asymmetrical rates, meaning they want TSTT to pay a higher interconnection charge than they pay to TSTT.

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#6 User is offline   Triniboi Icon

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Posted 28 May 2006 - 07:30 PM

There was an article on the Guardian that was explaining what asymmetrical rates are. I can't remember the date of the article. They did not come out openly and say what the rates were, because I think during the negotiation the are not allowed to say anything.

But if you read the article you get the impression that this was the case. Of course I could be wrong as I was intepreting what I was reading.

Judging from the TSTT/Laqtel deal I would think that TSTT is not against reciprocal rates.

I guess we will have to wait to see what comes out of the arbitration to decide who was the one who wanted it different.

If you rationalize it, Digicel would be the one to benefit if TSTT had to pay higher interconnection charges than they do, as TSTT has the bulk of the customers. Additionally, you can see from Digicel Rates that their off net charges are higher than that what you would come up with if you use the TSTT/Laqtel rate of 45c.

I cant see TSTT settling for 45c with Laqtel and then asking Digicel for more. The reason I say this is that the interconnect rate is supposed to be based on cost. By accepting 45c from Laqtel, TSTT has showed its hand....it is telling the whole country that based on its cost it will accept 45c.

I hope I have clarified my previous post.
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