Flow seeking to halt new fixed termination rates

5 Oct 2017

Cable & Wireless Jamaica Limited, which trades as Flow, has filed an application in the Jamaican Supreme Court seeking to bar the Office of Utilities Regulation (OUR) from implementing its previously stated cuts to fixed termination rates (FTRs). The OUR had developed a ‘glide path’ to implement the rate cuts over six months, from 1 October 2017 to 1 April 2018, but dominant provider Flow has long argued for a longer glide path, which extends over two years or more. At a hearing in the Supreme Court late last month, OUR agreed not to implement the first rate cut before completion of the hearing of Flow’s application for an interim injunction today (Thursday 5 October).

The new FTRs were originally scheduled to take effect on 1 July 2017, but were delayed following Flow’s complaints. Under the OUR tariff schedule for FTRs, the adjustments would be as follows: local call rates will drop from JMD0.41 (USD0.03) to JMD0.25 per minute this year, and to JMD0.09 from 1 April 2018; national calls will drop from JMD1.15 per minute to JMD0.62 and to JMD0.10 from 1 April 2018; and international rates will fall from JMD1.45 to JMD0.77, and to JMD0.10 per minute also effective 1 April 2018.