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Tribunal upholds OUR decision regarding landline termination rates

by March 30th, 2018

The Telecommunications Appeal Tribunal has dismissed an appeal brought by Cable and Wireless Jamaica Limited (CWJ), to have the Office of Utilities Regulation (OUR) delay the implementation of new termination rates for fixed landline services.

In a statement, the OUR says  the judgment, which was delivered on Wednesday, affirmed the OUR’s decision regarding the implementation schedule for the new fixed termination rates, which would see a reduction in the cost to terminate calls on CWJ’s fixed network.

The OUR says in June 2017, after consultation with the telecommunications industry, it determined that based on the results of a long run incremental cost model, fixed termination rates should be reduced.

The OUR also determined that the reduced fixed termination rates derived from the model would be implemented by way of a two-step six month glide path.

Cable and Wireless asked the OUR to reconsider the implementation dates of July 2017 and January 2018, and for a period of 3 years instead of 6 months.

The OUR kept the 6 month timeline, but issued new implementation dates for October 2017 and April 2018.

Cable and Wireless sought a Judicial Review in the Supreme Court and lost its case.

But the court battle resulted in another delay to the implementation, pushing the date to December 2017, when the first reduction was effected.

CWJ appealed the OUR’s reconsideration decision to the Telecommunications Appeal Tribunal.

The appeal was heard on February 26 and the tribunal, in delivering its judgment, dismissed CWJs appeal and upheld the OUR’s decision.

The Tribunal indicated that it was satisfied that the OUR made sufficient effort to hear the views of all relevant stakeholders before making its decision on the implementation of the rates.

The second and final reduction in fixed termination rates is scheduled to take effect on Sunday, April 1.

 

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