In a press conference Wednesday, Richard Misech, PNCC General Manager said that the proposed increase will be from $11 to $12.10 for the residential telephone line.
The business/government fixed line telephone service will increase from $22 to $24.50 per month.
The proposed reconnection and change of number fees meanwhile will be at $6.05 each while transfer of line location at $12.10.
Misech said during the press conference that PNCC is bearing the high cost of supporting services nationwide.
Misech said PNCC is also repaying the $39 million RUS loan and that the profitable market in Koror is being affected by “unregulated competition.”
Misech said the proposed rate is still to be subjected by PNCC board of directors’ approval.
The next board meeting will be at the end of the month.
Misech said that the rate of the telephone line has not been increased since 1994.
He stressed the PNCC actually spend $30 per month in providing this service.
Years ago, there was an attempt to increase the local rate for fixed line but was not implemented.
Earlier, the PNCC conducted a public hearing on the proposed changes to the PNCC Tariff.
“PNCC has requested and waited for many years for the government to make a legal remedy but it is apparent now that it may be awhile before a legal remedy can be made. Competition forces us to price each of our services near its specific cost, thus toll service to be competitive has had to come down towards its cost, a trend which began in 1999 with a series of rate reductions,” Misech said.
The other changes that PNCC has recommended are the following:
* Fixed line telephone extensions will no longer be charged any fee (currently charged at $2.50 per month each).
* Long distance rates to several destinations that were not included in the 2004 rate reduction, such as Iraq, Kiribati, Niue, and Tuvalu will be reduced to rates as low as $0.99 cents per minute.
* Fixed Line Voice Mail service is lowered from $3.95 per month to $2.95 per month, with further discounts for multiple voice mail accounts.
* Tariff #6 establishes a rate of $2 per month per line for Hunt Service, an optional feature that helps offices with multiple phone numbers by routing incoming calls to the next available number when a line is busy.
*The PNNC will also deregulate inside wiring for fixed line telephone service so that the customers can maintain their own wiring and equipment inside their premises.
The PNCC is offering an optional fixed line inside wire maintenance plan at $3 per month per line.
* For Internet and Data Services that there will be no curreny changes in Internet dial-up and DSL rates, which were reduced in December 2005.
* Tariff No. 6 also “LAN” services from the Tariff since they are no longer offered. A local high-speed. Data networking service for businesses currently called Hubbed DSL has a name change to Virtual Local Area Network (VLAN). A new condition requiring a minimum of 5 computer units is introduced for the existing DSL Internet Resale service for Internet cafes and hotel business centers.
* Wireless Services. There are no changes in rates for existing wireless services. The free minutes in the existing Wireless Volume Plan are redefined since calls made between numbers within the plan are not charged against the 500 included minutes. The existing rate charged for sending a International Text message (ISMS) is established at 20 cents per send. The expiration date for prepaid wireless service is defined.
* Existing digital TV rates and packages are published with no changes. A rate for a new service called DTV Broadcast Connectivity is established which allows qualified applicants to broadcast locally produced programs on a PNCC Digital TV channel.
PNCC has 7,000 fixed telephone line subscribers; 3,000 Digital Cable TV subscriber and at least 1,000 internet services customers and 10,000 wireless services subscribers.
