Ten months before Trinidad and Tobago telecom company loses monopoly

by Marcia Braveboy

Tuesday, August 10, 2004

PORT OF SPAIN, Trinidad: The Chief Executive Officer of the Telecommunication Services of Trinidad and Tobago (TSTT) Sam Martin recognises that in ten months time the company will have to contend with an influx of competition that will inevitably adversely affect its comfort zone.

Mr. Martin acknowledged that costs have never been a compelling factor for the company, which has enjoyed a monopoly for decades, but they undoubtedly “will have to become much more cost conscious.”

“We also expect that our market share will fall in most areas so that there is need for us to look at out overall cost; and to even ensure that our costs are more competitive than even our best competitors,” said Martin.

As competition becomes closer, TSTT has been reducing their prices for international calls and is continuing to do so.

However the proliferation of calling centers throughout the country has served as the first and main trigger for the reduction of TSTT’s phone rates. The calling centers have been offering international calls to the US, Canada, the UK and beyond at prices of between 20 – 40 US cents per minute, and even lower in some cases.

These rates have sunk to some 85 percent below TSTT’s general phone rates. TSTT has been complaining about the legality of the installation of the call centers; but the futility of their complaints forced them to offer more customer friendly rates.

Chairman of TSTT, Christian Mutae who has been calling on Government to relinquish its shares, believes firmly that the state will give up control over the company when competition arrives in approximately ten months time.

At an information session organized by TSTT last Thursday, Mr. Mutae said that Government being regulator, owner and investor has a conflict of interest. A Minister of Government also echoed the sentiments of Mr. Mutae.

But at a press meeting held on Friday, head of the Communication Workers Union (CWU), Lyle Townsand, warned of possible hardships if the telecommunications sector is opened up to competition.

He said that talks on liberalization are just a recycled myth that has never worked and will never work. “It has nothing to do with the development of the economy of Trinidad and Tobago; that is purely a situation for somebody else, or for foreigners in particular, to come here and cream off the society,” Townsend expressed.

The CWU’s head described the statements by the TSTT chairman to be premature and irresponsible. He said that Government is not owner and regulator of the company, but said, “The regulatory function is independent, devoid of Government control.” He continued by saying, “the Government will be relinquishing and selling out the workers’ rights and the workers’ company; and you can’t do that; that is very irresponsible and very stupid.”

  Back...

  Most popular articles: viewed, printed and e-mailed

  Printable version