TSTT claims victory

The panel did not set any final interconnection rates on Wednesday and TATT officials said Digicel and TSTT would have to reach an agreement on what those rates should be.

In a statement yesterday, TSTT said the panel concluded its hearings on the interconnection dispute on Wednesday and ruled that “the situation does not require or justify the development and use of separate efficient costs based on the stage of network building and customer acquisition.”

TSTT said the main point of contention was whether both companies should pay the same interconnect rate for the same service or whether TSTT should pay Digicel a higher mobile termination rate than what Digicel would be paying TSTT.

TSTT legal, regulatory and carrier services vice-president Lisa Agard said TSTT’s proposal was based on the outputs of its costing model which was reviewed by an independent expert during the hearings. She explained that while this model would ensure that customers “do not have to pay for inefficiency” the proposal from Digicel “would have meant that TSTT would have had to increase the rates which it currently charges both its fixed line and mobile customers who make calls to Digicel.”

Agard said while the panel did not set any final interconnection rates, it determined that mobile termination rates should be within a range comprising TSTT’s cost model, a New Zealand benchmark study and Digicel’s cost at a stage of static efficiency. She added that the independent expert concluded that TSTT’s mobile termination costs were that of “an efficiently operated network.”

While, TSTT claimed victory, Digicel said is was “extremely concerned” that the panel did not set the interconnection rates.

In a statement, Digicel CEO Stephen Brewer said interconnection rates played a vital role in ensuring the telecommunications market enjoyed the full benefits of competition.

He warned the delay in a final decision on the rates could tarnish TT’s image and hamper the liberalisation of the market.

Interim interconnection rates were set on March 31 and those rates remain in effect.