Jamaica delays wholesale rate cuts

3 Jul 2017

Jamaica’s Office of Utilities Regulation (OUR) has postponed the introduction of lower termination rates for fixed line calls after an appeal by the island’s incumbent operator, Flow. Last month the OUR ordered operators to slash the charge for terminating local calls from JMD41 (USD0.31) per minute to JMD25 on 1 July, with further cuts planned over the next few years, but the Jamaica Gleaner reports that Flow has petitioned the regulator to rethink the move, saying it would have a major effect on its cash flow.

In a letter sent to the OUR, Flow said: ‘The OUR does not appear to have given consideration to the magnitude of such sharp reductions on the immediate cash flow of the company, and the immediate and direct impact this reduction will have on working capital, investments incentives and potentially the long-term welfare of the society itself.’ The telco is calling for the rate reductions to be implemented more gradually.