LIME reduces rates again

LIME, a leading telecommunications provider, has reduced rates for the fourth time since August 2009. The new rate that LIME fixed line customer will now pay to make a call across network is fifty six cents (56 cents VAT inclusive) per minute, a further reduction of six (6) cents per minute, as of October 2010.{{more}}

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 previous three reductions came in August 2009, April 2010 and October 2010. These reductions represent a total saving of 30 cents ,which represents a discount of 32 percent.

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 costs in line with the 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. An 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 August 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 the third in October 2010. All savings were passed to the customers. Customers felt it in their pockets. Now we are doing our fourth rate reduction in less than two years,” said Angus Steele, LIME General manager.

Steele 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 three times since August 2009. 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. While others neglect to take their social responsibility to pass savings to their customers seriously, we don’t.”

This fourth rate reduction took effect on April 2, 2010, and LIME will continue to work with the Regulators in the future to bring the best rates to our customers.