Consumer Intervention

Fellow consumers and customers of Cable & Wireless, it feels good to be able to announce to you that, "WE WIN" for the second time, with the announcement that land lines will be frozen. However, the increase through the Price Cap back door gave C&W a fair bit of what it wanted. I think we pricked the conscience of the FTC because there were unconfirmed reports of a ding dong battle between C&W and FTC over Price Cap.

While it is good news that the domestic landline users will not experience an increase in their telephone bills, it is still a fact that the cost of telephone and communications in general, is high.

About 6 years ago, the average household budget for communications, namely landline was about thirty dollars. Between then and now the average household which uses all the telecommunications services at minimum is on average $160.00. This represents a 530% increase in your telecommunications bill.

In light of this, I would like you to consider the following:

1. The cost of the network is already absorbed by the domestic and business customers using landlines and out of this income C&W earns a reasonable rate of return or profit.
2. C&W is also using the network to sell internet which they get dog cheap and charges more than twice what they charge for the landline that is already paying for the network.
3. When you use a cell phone to call a landline on the network that is already paid for, you pay three times the amount for each call as you would pay for a phone booth which also accesses the same network. Why the difference in price?

These are the factors that allow C&W to earn super profits. Bleed the people of Barbados and then start crying about inflation, when in truth and in fact, this quest to earn super profits has contributed significantly to inflation.

If our communications bill had simply doubled to about $50 - $80 per month for everything inclusive of cell phones and internet, we could not complain too much, but think about the number of tins of milk, bread and cheese per month that the extra $80.00 could buy?
Think also of your gas bill (or even bus fare) and the fact that the extra $80 could have helped cushion the impact of the oil increases we are now experiencing.

When you are done, please answer the question, are you feeling the cost of communications in real dollars or missing dollars to fulfill some other important commitment because you had to pay a phone bill? If you did not have to pay that extra $80, wouldn't the commitments fulfill easier?

Even if it does not impact you, think of poorer families where children need the internet to gain the edge in the absence of having a library or other means of access to information and guidance. Also of the small business that could be more competitive if the cost of technology was not so high?

What is most damaging about this exercise is that the only perceived reason that prices could be so high is to deter competition and this is very insensitive to consumers who are being asked to pay to keep out competition.

Fellow consumers! That is madness! Why would we pay through our noses to keep out competition when competition is in our interests? One can only conclude that C&W has no sense of Corporate Social Responsibility.