Phone rates on the rise

Mining and Telecommunications, Minister Derrick Smith is to hold talks with Digicel and LIME officials about the increase in the cost of landline calls to Digicel mobile phones.



Since yesterday it has been costing $8.50 cents a minute during peak hours to call a Digicel mobile phone from a LIME landline, up from $7.



This is a 21 percent hike.



Digicel had requested the rate increase and LIME said it had no choice but to honour the request.



At the same time, there has been a seven percent drop in off-peak and weekend rates.



It has moved from $7 a minute to $6.50.



The telecommunications ministry says 70 percent of landline calls to LIME’s network are made during peak hours.



The Office of Utilities Regulation says Digicel has not breached the cap on the price that may be demanded for calls terminating on its network.



Mr Smith says he is aware of the negative impact of any price increase on consumers at this time. He’s also urging telecommunications producers to be mindful of the current economic challenges.



The minister says he must first meet with Digicel and LIME officials next week before commenting further on the matter.