LIME is reducing rates again

Great news for LIME customers in St. Vincent and the Grenadines, as the Caribbean’s premier telecoms company prepares to lower the rates for calls from LIME landlines to mobile phones for the third time in just over a year. Additional reductions on other call types are also under consideration.{{more}}

The National Telecommunications Regulatory Commission (NTRC) approved an Interconnection agreement between both telecommunications providers in 2009 that replaced the agreement that existed since 2003. That agreement established among other things new wholesale rates for the cost of calls made between networks of both providers. The wholesale rates were lowered and the NTRC expressed the view that both companies were expected to pass on savings from these new lower rates to their customers.

In an effort to bring telecommunications cost in line with the true cost of providing the various services, a model called the Long Run Incremental Cost (LRIC) model was adopted and the NTRC and the operators have been working over the years to finalize and agree the true cost of providing various Telecommunication services to customers. A LRIC model is often used in telecommunications regulation to determine the price paid by competitors for services provided by an operator with significant market power.

“In July 2009, LIME responded to the request from the NTRC and reduced rates to its customers after the signing of the agreement. In April 2010, the second reduction was done and savings were again passed on to customers. Customers felt the reduction directly in their pockets,” said Angus Steele LIME General Manager.

Steel continued: “We are really pleased to be able to prepare our customers and potential customers in St. Vincent & The Grenadines for further reductions where we’ll offer lower calling rates, helping to make things easier for customers in these challenging times. This is after we have previously reduced fixed and mobile rates as a result of a reduction of the Mobile Termination rates twice already within one year.

“Our mission to add value and make a difference to our customers’ lives is also evident in the way we are making it affordable today for everyone to access the internet. We have a social responsibility and take it seriously as a social and Community Partner here in St. Vincent and The Grenadines. Others don’t and we call on the public at large and all Consumer Groups and other such groups to demand that they do the same and pass on the savings obtained by the lower interconnection rates than simply continue to keep the rates higher than expected.”

This third rate reduction will take effect in October and LIME customers will continue to see further reductions in the near future.