Business edgy over looming jump in local TSTT rates

THE BUSINESS community has come out in high praise for the decision by the Telecommunications Services of Trinidad and Tobago (TSTT) to slash international phone rates in half. Concerns were expressed, however, that increases in local rates proposed by TSTT’s CEO Sam Martin would increase the operating costs of some businesses. In an interview with Newsday, president of the Trinidad and Tobago Manufacturers Association (TTMA), Anthony Aboud, explained that the decision by TSTT to lower international rates by 50 percent is a “fabulous” one, which should have been done “a long time ago.”

He pointed out that lower international rates would not only be beneficial to the business community but to residential customers as well, since a large number of these customers have friends and family who reside abroad. He explained that this would make it easier for these people to keep in contact. Aboud also stated that the decision showed that TSTT had started to think competitively, which is “a good thing” since the market may soon expand to include Caribbean and international service providers. He said that his only concern was the proposed increase in local rates, noting that local call charges are already expensive. He said that people did not usually pay attention to this, but at the end of the month “it all adds up to one large bill.” Echoing Aboud’s congratulations and concern was San Juan Business Association president Gail Merhair, who said the initiative was long overdue. Her primary concern, however, was the proposed increase in the local rates.

Merhair noted that while the type of increase to be made has not been announced, she was concerned about the impact any increase would have on commercial and residential lines. She said the increase must not make it a “luxury” to have a telephone line in your home. However, President of the Chamber of Commerce and TSTT chairman Christian Mouttet assured that the increases would not be exhorbitant, noting that there would not be an increase in certain areas. Mouttet noted that while TSTT has the ability to lower international rates, it did not have that kind of authority to adjust local rates, explaining that this can only be done by the regulator. He said that the company makes the proposal to the regulator, who considers it before informing the company of the decision.