LIME announces lower rates across networks

Telecommunications provider LIME has reduced rates for the third time within eighteen months. The new rate that LIME fixed line customers will now pay to make a call across networks is 62 cents per minute, a further reduction of 4 cents per minute as of April 2010.{{more}}

A release from the company said LIME has been raging a virtual “war on rates” and has responded to the request from the NTRC and the government to pass the savings from the reduction of interconnection rates to its customers.

LIME has accused other providers of not passing on these savings and has called on them to follow its example and respect the wishes of the regulator.

The first reduction came in August 2009 and the second in April 2010. The three reductions represent a total saving of twenty cents which represents a discount of twenty four percent.

The National Telecommunications Regulatory Commission (NTRC) approved an Interconnection agreement between both telecommunications provider 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 Long Run Incremental Cost (LRIC) model, the NTRC has been working over the years with the providers to establish the real cost of providing the service to their 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 all savings were passed to the customers. Customers felt it in their pockets.” said Steele LIME General manager.

Steel continued: “We are really pleased to be able to reduce our rates further and to offer lower calling rates and help to make things easier for consumers 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 in 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. Others don’t.”

“While other providers have refused to respond to the call to pass savings to their customers, this third rate reduction will take effect in October and LIME customers will continue to see further reductions in the near future,” the release said.