Cable and Wireless Makes Big Price Changes

By Mellica McPherson

 Cable and Wireless is lowering their rates, the company’s Chief Executive, Mr. Vance Lewis, made this announcement at a press conference on Friday 11, November. The price change is part of the agreement between Government and Cable and Wireless for the restructuring of prices for both international and domestic calls and for the rental of telephone lines. The rate modification will take effect 1 December 2005. It is Cable and Wireless’s (C.W.) way of preparing to contend in a soon to be competitive market, since liberalization is approaching. 

The new rebalancing system will allow for a 60 percent decrease in the rate of an overseas phone call, Mr. Lewis explained. He mentioned that “Cable and Wireless is not seeking to make extra profit, because all calculations show that the company will gain no added revenue from the changes.” On the other hand, the decrease of the phone call rates will mean the increase of service charges such as line rental. Residential line rental fees will now increase from nine dollars to $20.00 per month, and line rental for business will increase from $18.00 to $40.00.

From 1 December, C.W. will be introducing their new residential Home Plans with reduced international rates for residential customers. These new plans will include 500 and 800 free minutes per month, and five cents per minute exceeding the free bundle minutes.

In addition, customers can choose to pay a flat rate of $50.00 for unlimited fixed to fixed calling. These new home packages include: line rental, call features, and Talk-Away Discounts. Cable and Wireless’s new plans are designed to replace the existing SmartChoice Plans, which also include free minutes. SmartChoice customers who decide to remain on that service will see an increase of $11.00 on their phone bill because of the rise of the line rental fee.

Customers on the basic plan will pay 15 cents per minute for all local calls.  Residential customers can either take one of the flat rate plans or the basic line rental of $20.00 per month and pay 15 cents per minute for local calls. Cable and Wireless announced that customers have the month of December to decide on the appropriate plan, but they must be enrolled by 1 January, 2006.  If customers are not enrolled by that date they will automatically be enrolled in the Basic Plan. However, Mr. Lewis assured that customers should not feel pressured because if they decide that they are not comfortable with a particular plan that they have chosen they can change to another more suitable to them.

Special provisions were made for the elderly -- for the first time Cable and Wireless is offering a senior citizens plan. With proof of age a senior citizen who is 65 years old, or became 65 on 1 December 2005, will be eligible to receive the senior citizen plan of a monthly rate of nine dollars.  Though customers on this plan will not be eligible for Home Plans, calling features, DSL, IP or Data lines, they will be given a special rate of 10 cents per minute. However if $25.00 is exceeded in international and local calls in any month, full line rental charge of $20.00 will be billed.                          

Businesses with two or more lines or businesses that have key-systems or PABXs will not have a choice of calling plans. They will have to pay 15 cents per minute for a local call, plus $40.00 per month for line rental. Corporate choice discount will still apply. “With the new pricing structure, businesses in the BVI will see lower international rates,” Mr. Lewis said. He also mentioned that customers could still use discount codes such as 10-10-335 and 10-10-269.