The Regulated Industries Commission (RIC) has published in the
newspapers a press release titled "RIC reviews telephone sector"

Below is the text of this release (obtained not from the RIC website
but from scanning and editing the press release)

Dev Anand Teelucksingh
Trinidad and Tobago Computer Society at http://www.ttcsweb.org/
"networking local computer users!"


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RIC reviews telephone sector
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In fulfilment of its statutory responsibility, The Regulated Industries
Commission (RIC) has issued the following determinations:

1. The Telecommunications Services of Trinidad and Tobago Ltd (TSTT),
between 1999 and 2003, has derived a "rate of return" consistently
above the 15 per cent provided by the Trinidad and Tobago
Telephone (Amendment) Act No 22 of 1990. The RIC has advised
TSTT to adopt measures to correct this.

2. The RIC has recommended that TSTT should, among other things,
make downward adjustments in its charges to customers.

3. The "International Call Centres" are providing telephone service
in violation of the Regulated Industries Commission Act
No 26 of 1998 which requires a license for such operations.
The Commission has ruled that without such a license
the International Call Centres are operating illegally.

TSTT has been informed of these determinations and the
International Call Centres are being advised by letters and Public Notice.

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FINDINGS AND REASONS
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a) TSTT profits

Section 5 (1) of the Trinidad and Tobago Telephone (Amendment) Act
No. 22 of 1990 provides for TSTT an annual "rate of return"
of 15 percent on its "rate base".

The RIC study of TSTT’s financial statements between the period
1999 and 2003 has established that the company has made returns
consistently higher than 15 per cent of the rate base.

b) Proposals to TSTT

The Commission has proposed for adoption by TSTT a range of services
to benefit all customers. Some of these include special services
targeting low-income customers and those making least
use of their telephones. These include:

* Reduction of fixed monthly charge from $29 to $25;
* Lower charge per call within exchanges and between exchanges;
* Unlimited Plan - fixed amount per minute to call anywhere in
Trinidad and Tobago;
* Lifeline Service - enabling customer to receive calls but to
make only emergency and collect calls;
* Light User Scheme - rebates for customers who make only 25% of
average annual bills, or no calls at all.

RIC is of the view that TSTT can adjust its charges downward and
provide these services, to the benefit of consumers, without
seriously compromising its profitability and future growth.


c) Closing illegal call centres

The RIC has determined that the "International Call Centres", which
offer phone-to-phone contact using Voice Over Internet Protocol
(VOIP) technology are delivering telephone service.

As providers of telephone service, the call centres fall within terms
of the Regulated Industries Commission Act No 26 of 1998,
which requires licences for such operations. The RIC holds that,
without licences, the call centres are operating
illegal telephone service which should be discontinued.

This decision is in line with international regulatory policy
upheld by the International Telecommunications Union and
given effect to by the UK, Canada and Australia.

The RIC has suggested that TSTT reduce its international
calling rates.

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REGULATED INDUSTRIES COMMISSION
Furness House, Levels 1 & 3,
Corner Wrightson Road and Independence Square, Port-of-Spain
e-mail: ricoffice@...
Web site: www.ric.org.tt
Tel: 627-0821/0503/7820
625-5384
Fax: 624-2027
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