Telecom cuts toll rates for some but others will pay more

By CATHERINE MASTERS

Toll calls through Telecom to Asia, Western Europe and Samoa are about to get cheaper - but not so to some Pacific Island countries.

Telecom is "rebalancing" its prices for international calls, resulting in price reductions to 37 countries and increases for 11.

Call capping, where one price is charged for a call of a certain duration, is also being substantially reduced to areas where most calls are made. The Solomon Islands are hardest hit by increases.

Peak-hour prices per minute to the Solomons will rise on September 1 by 57c, to $2.09, and the off-peak charge by $1.10 to $1.99.

Calls to Britain, Canada, Ireland and America will cost the same in off-peak times, but during peak hours (8am to 6pm weekdays) they will increase by 6c a minute.

But the cost of Hong Kong calls, for example, will be reduced in peak periods by 32 per cent and Western Samoa by 35 per cent.

Off-peak calls to 17 European countries will drop by 10 per cent and two-hour capped calls to France, Germany, Italy and the Netherlands will fall from $20 to $10.

Capped calling to Japan, Singapore, Taiwan and South Korea will drop from $25 to $18.

Telecom marketing manager Kevin Kenrick said the changes reflected the number of calls made to the countries, the length and time of the calls and the individual negotiating over charges that went on with countries.

"That's why it varies so much from one country to the next," he said.

There were substantial decreases around cap calling, and it had been extended to Malaysia and China.

Mr Kenrick could not explain why calls to the Solomon Islands were increasing by more than 100 per cent in off-peak times, but said most Pacific Island countries did not have capped calling services because they tended not to have high volumes of calls.

The difference between peak and off-peak charges was because of the international networking capacity. "What we're trying to do is give people real incentives and great value opportunities to call during the off-peak periods."

Pay phone charges are also to rise, from 50c to 70c a call.

This was because of a "massive" rise in the number and use of mobile phones but Telecom still had to administer the payphone network and maintain the booths.

Ernie Newman, of the Telecommunications Users Group, was not concerned at the changes.

"We're much less concerned about that than we would be with certain other services because international tolls is a volatile and competitive market."

The users had a choice and if they were not happy with charges they could call at different times or swap to a different provider.