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					                   Public Utilities Commission of Anguilla
             Telecom Decision PUC 2008-105, 8 December 2008

                                    The Valley, Anguilla – 8 December 2008


   In the matter of an application to revise prices for a service with the brand name of
             „NetSpeak‟ provided by Cable & Wireless (Anguilla) Limited




                                                      Table of Contents

I Background ...........................................................................................................................1

   Scope of Proceeding.............................................................................................................1
   The Proceeding .....................................................................................................................2
   Confidentiality ......................................................................................................................4

II Commission Analysis and Findings .................................................................................5

   Proposed Service Description and Price Changes .............................................................5
   Public Notice – Submission and Reply...............................................................................6
   Revised NetSpeak Prices ...................................................................................................12

   1. Plan and Service Descriptions ......................................................................................12

   2. Key Terms and Conditions ............................................................................................13

   3. Rates for Out-of-Plan Calls ...........................................................................................14

   4. Other Charges .................................................................................................................15


III Directions on Procedure ................................................................................................16
              Public Utilities Commission of Anguilla
        Telecom Decision PUC 2008-105, 8 December 2008


I Background

Scope of Proceeding

1.     Section 4(1) of the Telecommunications Act R.S.A. c. T6 (the Act) requires that
every person operating a public telecommunication network or providing a public
telecommunication service in Anguilla must have a license granted by the Public Utilities
Commission (the Commission or PUC).

2.     Cable & Wireless (Anguilla) Limited (C&W or the Company) is a licensed
telecommunications network operator in Anguilla. C&W is the incumbent operator and
was granted a new license by the Commission on 14 December 2004.

3.     The Company initially filed prices for their new „NetSpeak‟ service in September
2005 and an application to revise the initial prices and packages on 30 January 2007.

4.       In the case of the initial NetSpeak application, the Commission approved the
initial provision of the Company‟s „NetSpeak‟ service in Telecom Decision PUC 2006-
101 dated 31 March 2006.

5.      In Decision 2006-101, the Commission concluded that C&W‟s „NetSpeak‟
service be categorized as a public telephone service and be subject to price regulation,
paragraph 96 of the decision reads as follows:

   ‘‘96. The Commission having considered C&W’s submission of 29 September 2005
   and their subsequent filings as well as the submissions of CCC has determined that
   C&W’s proposed new voice service under the brand name of Netspeak be categorized
   as a public voice service and that C&W is dominant in both the IDD and domestic
   public voice market segments. As a result, the Commission finds that the prices
   associated with the new public voice service are subject to price regulation pursuant
   to Section 12.9 of C&W’s license. (See Directions on Procedure, paragraph 162)”

6.     Following the filing of the proposed NetSpeak prices, the Commission issued
Decision 2006-102, dated 26 May 2006, approving the proposed prices (see Decision
2006-102, paragraph 20).

7.      By way of two covering letters, both dated 30 January 2007, C&W filed proposals
to amend their existing NetSpeak service offerings. One amendment was a proposal to
expand the service package options and the second amendment was a proposal to provide
„free‟ domestic on-net calling i.e. NetSpeak to NetSpeak domestic calls.




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               Public Utilities Commission of Anguilla
         Telecom Decision PUC 2008-105, 8 December 2008

8.      The Company described the amended service offerings as providing customers
with more „unlimited‟ calling options and thereby providing them with a broader
selection of options in order to meet their specific calling needs.

9.     The Company amended their application of January 2007 by way of a letter dated
7 March 2007 and an attached proposed price schedule that included both the changes in
the service packages and also a proposal to provide „free‟ domestic NetSpeak to
NetSpeak „on-net‟ calling.

10.    The Commission published a public notice in the Gazette, Volume 37, 30 March
2007, page 17, item # 93. Interested persons wishing to make a submission on the matter
of the proposed changes in the pricing for NetSpeak „on-net‟ calls were invited to file
such submissions with the Commission on or before 23 April 2007.

11.      Caribbean Cable Communications (CCC) filed a submission in response to the
Public Notice. Reply comments to the CCC submission were filed by C&W by way of a
letter to the Commission dated 2 May 2007.

12.    The Commission issued Decision 2007-101, dated 18 May 2007, approving the
proposed revised NetSpeak prices (see paragraph 35).


The Proceeding

13.    C&W filed with the Commission a letter dated 15 August 2008 that sought
authorization to re-structure and re-price NetSpeak Service Plans. The company‟s
submission included both a confidential and abridged version of the letter of application.
In addition, a two-page attachment was included consisting of a description of the
proposed new Plans and a one-page schedule of the proposed prices.

14.    The Commission replied to the C&W letter of application by way of a letter dated
2 September 2008.

15.     The Commission informed the company of certain errors and omissions in their
application of 15 August and requested that these be corrected in order for the application
to be given further consideration. In addition, the Commission raised the matter of the
company‟s claim for confidentiality and the requirement to provide interested persons
with sufficient information to permit a meaningful response to the proposed changes.

16.     The Commission also requested that the company file certain outstanding status
reports listing the number of NetSpeak packages in service at the end of each quarter.
These reports had been requested in a previous Commission decision (Telecom Decision
PUC 2007-101, 18 May 2007, paragraph 47).




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              Public Utilities Commission of Anguilla
        Telecom Decision PUC 2008-105, 8 December 2008


17.     The NetSpeak status reports were to have been filed at the end of each quarter
commencing with the quarter ending 31 March 2007. However, the only such report filed
by the company was in August 2007 after the Commission made a further request for the
report. The one report filed by the company listed the number of NetSpeak customers „to
date‟ (22 August 2007).

18.   The Company filed the outstanding quarterly reports on the number of NetSpeak
packages by way of a fax to the Commission under a covering letter dated 9 September
2008.

19.     Subsequently, the Company filed a „3 rd quarter‟ 2008 NetSpeak status report
under a covering email dated 22 October 2008. On reviewing the report, the Commission
determined that the NetSpeak Plans identified in the status report did not match those
filed by C&W and approved by the Commission in May 2007. The status reports
referred to „Plan C‟ as being the „Nearby Island‟ package whereas the approved Plan C is
the „C&W Caribbean Package‟. In addition, the status report did not reflect „Plan D‟
although this plan was approved as the „Nearby Island‟ NetSpeak package in
Commission decision 2007-101 (paragraph 35, page 7).

20.    The Company filed a „revised‟ 3rd Quarter report dated 26 November 2008 which,
while including Plan C and Plan D, designated the Plans incorrectly with Plan C
designated as the „Nearby Island‟ plan and Plan D as the „C&W Caribbean‟ plan.

21.     Since the Company‟s current application includes a proposal to discontinue „Plan
D‟ (Nearby Islands) and amended „Plan C (C&W Caribbean), the Commission sought
further clarification from the Company on 28 November and requested that the reports be
reviewed and the Company advise further as to the status of these plans in terms of the
number of units sold as requested in Telecom Decision PUC 2007-101, 18 May 2007,
paragraph 47.

22.    The Commission in their letter of 2 September also requested the company to file
an update to their reply to interrogatory „PUC09Dec05-03‟. This data is related to the
type of NetSpeak offerings the company provided in other regional jurisdictions
including the Turks and Caicos Islands and the British Virgin Islands.

23.    In response to the Commission‟s letter of 2 September 2008, the company filed an
amended application to revise NetSpeak prices and packages under a covering letter
dated 12 September 2008.

24.     A notice of the application and the proposed changes was published in the
Gazette, Volume 38, 30 September 2008, page 35. The notice advised interested persons
wishing to make a submission on the matter of the proposed changes in the pricing and
structure of NetSpeak packages and the change in pricing of regional „on-net‟ NetSpeak




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               Public Utilities Commission of Anguilla
         Telecom Decision PUC 2008-105, 8 December 2008


calls that such submissions may be filed with the Commission on or before 14 October
2008.

25.   A submission dated 13 October 2008 was filed by Caribbean Cable
Communications (CCC) in response to the Public Notice. Reply comments to the CCC
submission were filed by C&W by way of a letter to the Commission dated 21 October
2008.


Confidentiality

26.    Section 18 of the Telecommunications Administrative Procedures Regulations
2004 R.R.A T6-1 (Procedures Regulations 2004) sets out the procedures regarding
matters of confidentiality.

27.     C&W filed „Confidential‟ and „Abridged‟ versions of their initial letter of
application dated 15 August 2008. The company requested confidentiality pursuant to
section 18 of the Procedures Regulations 2004 and section 41 of Public Utilities Act
(2004) (R.S.A. c.P175).

28.    The Commission replied to the company‟s initial letters with respect to the
request for confidentiality by way of a letter dated 2 September 2008. As noted in
paragraph 15 above, the Commission commented on certain aspects of the company‟s
claim for confidentiality, for example, the absence of any reference in the „abridged‟
version of the application to the proposal to remove all charges for all „on-net‟ NetSpeak
calls.

29.     The Commission advised the company that in order to provide an interested
person with a reasonable opportunity to submit comments on the proposed changes that
the fact the charges for „on-net‟ NetSpeak calls were being cancelled should be included
in the „abridged‟ version of the application.

30.    The company filed a revised application dated 12 September with „confidential‟
and „abridged‟ versions of their letter of application.

31.     The Commission notes that in the initial and revised application filings certain
changes in the basic rates and terms of Plan C were not disclosed in the abridged version
of the Company‟s application.




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               Public Utilities Commission of Anguilla
         Telecom Decision PUC 2008-105, 8 December 2008

32.    By way of an email dated 14 November 2008, C&W waived their claim of
confidentiality with respect to the revised NetSpeak prices subject to the Commission
approving the revised prices.

33.    As the Commission approves, pursuant to this decision, the majority of the
proposed price changes included in the application, except for those related to Plan C,
C&W‟s request for confidentiality with respect to those revised NetSpeak prices is
withdrawn.


II Commission Analysis and Findings
Proposed Service Description and Price Changes

34.    The company describes the proposed changes to their NetSpeak product as being
intended to restructure and re-price the NetSpeak service plans in order to „better align‟
the NetSpeak service in Anguilla with the „rest of the Caribbean‟.

35.     In addition, the per minute price for „out-of-plan‟ international calls are proposed
to be reduced to EC$ 0.525 and the charges for all calls to NetSpeak numbers outside
Anguilla were to be discontinued and such calls included in the flat-rate packages. The
price for overseas numbers (DIDs) is proposed to be reduced from EC$ 15.95 to EC$
10.00 per month.

36.    A further proposed modification to the NetSpeak packages is the elimination of
the „Nearby Islands‟ basic plan (Plan D), however, existing customers may be
grandfathered at current prices.

37.     The proposed changes in the service package pricing was a reduction for the
„Basic Calling Plan‟ from EC$ 99.00 to EC$ 69.00. In addition, the combination price
for „two‟ basic plans was proposed to be reduced from EC$ 129.95 to EC$ 99.00 and the
price for three basic plans was proposed to be reduced from EC$ 159.95 to EC $ 119.00.

38.     The company proposes to offer the following three „Basic Plans‟: Basic Plan A
will permit unlimited calling to the U.S.A. and Canada; Basic Plan B will permit
unlimited calling to fixed numbers in the U.K. and Western Europe; and Basic Plan C to
offer expanded unlimited calling to C&W locations in the Caribbean. All three basic
plans include unlimited calling to domestic and international NetSpeak numbers.

39.     As previously noted the proposed change for NetSpeak to NetSpeak calling was
to add international (C&W Caribbean) NetSpeak calls to the flat-rate packages.

40.    An example of the proposed changes in the prices and packages is with respect to
basic price of each Plan which is proposed to decrease from EC$ 99.00 to EC$ 69.00, a
reduction of 33%. In addition, as well as including domestic NetSpeak to NetSpeak calls




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                  Public Utilities Commission of Anguilla
            Telecom Decision PUC 2008-105, 8 December 2008


in Plan C, calls to all C&W NetSpeak numbers in the Caribbean are to be included in the
package. And in addition, the expansion of certain other unlimited calling to C&W
numbers in the Caribbean Islands.


Public Notice – Submission and Reply

41.    In response to the Commission‟s Public Notice (Gazette, Volume 38, 30
September 2008, page 35), Caribbean Cable Communications (CCC) includes the
following statement in their submission of 13 October 2008:

          ‘object most strongly to C&W’s effort to use its previous monopoly position in the
          Eastern Caribbean to its continued advantage.
          C&W proposes free on-net calling outside of Anguilla. This would be protective
          of C&W’s dominant position and provides a significant advantage that is not
          available to CCC (except to the limited Nevis market).’

42.    C&W, in their response of 21 October to CCC’s submission, submits the
following description of the international calling market in Anguilla:

          ‘The market for retail IDD calling services in Anguilla is competitive. Customers
          now have a choice among four licensed operators as well as several VoIP
          providers based overseas (e.g. Skype, Vonage), for making IDD calls, and Cable
          & Wireless clearly no longer has any market power in Anguilla’ 1

43.     Both the CCC‟s submission and C&W‟s response raise the matter of products and
markets and the question of whether one market is dominated by a single supplier or
whether a market is competitive as a result of numerous suppliers. CCC, as a fixed
access supplier as well as a supplier of domestic and international calling, appears to
view the market for fixed access as being dominated by C&W. Whereas C&W appears to
consider the international calling market (IDD calls) as the relevant market in the context
of their NetSpeak product and submits that such a market is competitive.

44.     Since one of the price changes proposed by C&W in this application is related to
the price of calls between NetSpeak customers in the Caribbean region as well as calls to
certain other C&W numbers in the region, the question of which markets are impacted by
such price changes is a matter to be considered.

45.    The relevant markets potentially impacted by the current application are the fixed
access market in Anguilla, calls from Anguilla to the international calling markets in the




1
    C&W Reply Comments, 21 October, 2008, page 2.




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                  Public Utilities Commission of Anguilla
            Telecom Decision PUC 2008-105, 8 December 2008

United States, Canada, the United Kingdom, and Europe and, in particular, the Caribbean
region calling market for calls to C&W NetSpeak numbers and certain other C&W
numbers.

46.    The Commission notes that the matter of relevant markets related to C&W‟s
NetSpeak service was addressed in the initial NetSpeak proceeding and commented on as
follows in Commission decision Telecom Decision PUC 2006-101:

          ‘Finding that the new service, ‘Netspeak’, will provide International Direct
          Dialed (IDD) public voice calling and also domestic public voice calling in
          Anguilla, the Commission concludes that the two relevant markets pursuant to
          Section 17(6) of the Telecommunications Act R.S.A. c. T6 (the Act) are: (a) the
          IDD market; and (b) the domestic public fixed access and voice calling market.

          Finding that the empirical evidence presented by C&W on their current market
          share in the IDD market does not support the conclusion that the Company is
          non-dominant and also the evidence available to the Commission shows that
          C&W remains the dominant provider of domestic fixed access and calling, the
          Commission concludes that it would be premature to de-regulate these markets at
          this time.’ 2.

47.    The Commission notes that the Company‟s license provides guidelines with
respect to the Company applying to the Commission for a decision on the matter of
dominance. Sections 1.3 and 1.4 of the Company‟s license read as follows:

              ‘‘1.3 For purposes of this Licence, the Licensee is dominant with respect to the
      following telecommunications services in Anguilla:
                      1.3.1 Domestic public telephone services provided over the Licensee’s fixed
                      network.
                      1.3.2 International public telephone services provided over the Licensee’s
                      fixed network.
                      1.3.3 Services of terminating mobile telephone calls on Licensee’s own
              mobile or fixed network.
             1.4 Nothing in this Annex A shall prevent the Licensee from applying,
      pursuant to Clause 1.3 of Schedule 1, to have the Commission determine that the
      Licensee is not dominant in one or more geographic or service markets in which the
      Licensee provides the services listed in Clause 1.3 of this Annex A’
48.    Applications of this nature may be submitted on a „stand alone‟ basis and need not
be dependent or related to a specific price change or new product pricing application.
Such applications should be supported by empirical evidence and related economic
arguments.


2
    Telecom Decision PUC 2006-101, 31 March 2006, page 1 (Summary).




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                  Public Utilities Commission of Anguilla
            Telecom Decision PUC 2008-105, 8 December 2008

49.     The Commission‟s description of the relevant „NetSpeak‟ markets in Decision
2006-101 could be further developed by segmenting the domestic public fixed access
market from the domestic calling market which would result in three distinct markets –
international calling (IDD) market, domestic calling market and the fixed access market.
The fixed access service permits the customer to originate or terminate both domestic and
international calls.

50.    In the case of C&W, the Company currently employs two platforms for fixed
access, their legacy network and their VoIP platform as determined in the initial
NetSpeak proceeding (see Telecom Decision PUC 2006-101, Section 2.3 – Technology
and Market Trends).

51.     In terms of the fixed access market, C&W remains the dominant supplier and has
the capability of bundling products such as NetSpeak with domestic and international
calling packages.

52.  The Commission commented as follows in the initial NetSpeak proceeding in
2006
               ‘68. In terms of market share and domestic fixed-line calling and fixed access
               market, C&W continues to retain a significant market share as CCC has only
               recently launched their fixed-line service and is still in the process of
               finalizing domestic and international interconnection arrangements
               69. The following comments were submitted by CCC in terms of C&W’s
               market share in the fixed access and domestic fixed-calling market:
                               ‘1. Cable & Wireless is the Dominant Telephone Carrier
                               VoIP is simply another technology for delivery of voice services. It is
                               rapidly increasing in usage even by traditional telecom companies
                               and carriers. Even CCC uses a form of VoIP as an integral part of
                               its telecommunications system.
                               However, there are significant differences between the likes of
                               Vonage, Net2Phone and others vs. the proposed NetSpeak services.
                               First, Cable & Wireless is clearly dominant in the provision of fixed
                               line telephone service in any format. In fact, they have better than 98
                               percent market share.’3

53.    While the degree of dominance by C&W cited in CCC‟s comments of January
2006 on the fixed line market share may have been eroded over the past three years,
based on the annual data filed with the Commission by the licensed service providers,
C&W remains the dominant fixed line service provider in Anguilla.

54.    While C&W‟s market share in the domestic calling and international calling
markets may not be as high as that in the fixed access market, given their product mix of


3
    CCC submission dated 19 January 2006, page 1.




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                  Public Utilities Commission of Anguilla
            Telecom Decision PUC 2008-105, 8 December 2008


 fixed, including VoIP services, and mobile services, their economies of scope and scale
are currently unmatched by neither CCC, Digicel nor Weblinks in the Anguilla market.

55.      As a result, the matter of predatory or other anti-competitive practices require
consideration in the context of the NetSpeak re-pricing proposal and the offer to include
 all regional calls from NetSpeak customers in Anguilla to any other NetSpeak customer
in the region as well as to further expand unlimited calling to C&W numbers throughout
the Caribbean region as part of a basic NetSpeak package.

56.    The proposal to add all regional NetSpeak to NetSpeak calls as well as expand
unlimited calling to certain C&W numbers as part of Plan C introduces additional „costs‟
to the product and at the same time reduces the revenue due to the proposed price
decrease for Plan C.

57.     The question that arises is whether the financial return from Plan C, given the
number of destinations included in the flat-rate plan, is compensatory or is one or more of
the calling sub-packages being subsidized. If a subsidy did result, the ability of other
market participants to compete may be undermined and the achievement of sustainable
competition in the relevant markets could be endangered.

58.     CCC‟s submission raises the question as to whether the „termination‟ costs
attributed to the product for regional calls are reflective of the „wholesale‟ termination
charges assessed to external parties for international incoming termination service.

59.     A further argument put forth in CCC‟s submission of 13 October 2008 is related
to the relationship between C&W‟s wholesale termination prices and their retail prices.
CCC comments as follows on this matter:

          ‘Secondly, we ask the PUC to compare C&W’s proposed retail and business rates
          (NetSpeak and regular residential and discounted commercial telephone service)
          for calling its markets in the Caribbean with the costs charged both by C&W and
          international carriers for termination in the Eastern Caribbean market. We would
          gladly provide that information to the PUC under separate confidential cover’.4

60.    The Commission accepts CCC‟s undertaking to provide the above-mentioned
information (see Directions on Procedure, paragraph 75).

61.    C&W‟s response to the allegations regarding retail pricing and wholesale
termination fees reads, in part, as follows:

          ‘Finally, CCC makes a number of allegations of improper pricing by Cable &
          Wireless, without, of course, providing any particulars. Cable & Wireless views


4
    CCC submission dated 13 October 2008.




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                  Public Utilities Commission of Anguilla
            Telecom Decision PUC 2008-105, 8 December 2008


          these allegations as baseless and, given the lack of particulars, highly
          prejudicial, and will not comment further on them as this time.' 5

62.     The particular matter of termination fees in the Caribbean raised by CCC was also
raised in a previous „NetSpeak‟ proceeding by CCC and the Commission commented, in
part, as follows:

          „30. The third question raised in CCC’s submission of 18 April 2007 also relates
          to the question of call termination costs. CCC submits that if the incremental cost
           is zero perhaps C&W should propose to offer free termination to CCC customers
          for calls to C&W’s NetSpeak customers. As noted above, the assumption that
          there is no incremental cost related to domestic NetSpeak calling minutes is
          incorrect. Such misunderstandings may arise when the functions and application
          of cost causation (costing methodology) and cost recovery (pricing strategy) are
          either not readily apparent and/or understood.

          31. On the matter of interconnection fees, the Commission accepts C&W’s
          submission in reply comments that their current application and this proceeding
          does not directly relate to the issue of interconnection and, in particular, mobile
          and fixed termination fees or transit fees’.6 (emphasis added)

63.    While the previous NetSpeak application was primarily focused on NetSpeak to
NetSpeak domestic calling, although C&W also proposed to introduce „unlimited‟ calling
to C&W fixed numbers in the Caribbean, the current application is more extensive in
terms of calls being terminated on C&W Caribbean networks. As a result, the matter of
the increasing cost of call termination in the calling package as well as the level of
interconnection fees and the level of domestic calling prices arises.

64.    Initially when the NetSpeak product was introduced, the C&W Caribbean
component consisted of an „Optional Plan‟ priced at EC$39.95 for 100 minutes of calls to
fixed numbers. The current proposal for Plan C includes both domestic and regional
NetSpeak to NetSpeak calls and also significantly expanded unlimited calling to other
C&W Caribbean numbers.

65.    Coupled with the expansion of unlimited calling in Plan C, the Company proposes
to reduce the price of the package by 33 percent.

66.     Given the proposed changes in Plan C, the total potential cost of the Plan will
increase while the unit revenue will decrease and consequently the matter of product
viability arises.



5
    C&W Reply Comments, 21 October 2008, page 2.
6
    Telecom Decision PUC 2007-101, 18 May 2007, page 6.




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                  Public Utilities Commission of Anguilla
            Telecom Decision PUC 2008-105, 8 December 2008

67.    Based on the most recent filing (16 and 19 May 2008) with the Commission,
C&W‟s retail prices for domestic mobile to mobile „on-net‟ calls in Anguilla are in the
range of EC$ 0.45 (post-paid) to EC$ 0.75 (pre-paid). In addition, C&W‟s retail prices
for IDD calls to other C&W Caribbean destinations are in the range of EC$ 0.40 to EC$
0.90 per minute.7

68.    Given the current regional and domestic retail and wholesale price levels, a
proposal to expand unlimited calling to C&W numbers in the Caribbean requires
considerable more supporting evidence than that provided in the current application.

69.     The Company may wish to review and consider revising certain domestic retail
prices for mobile calls given the changes in the underlying cost function due to recent
reductions in mobile and fixed termination fees and having regard to the difference
between mobile and fixed termination fees.

70.    The Commission encourages the Company to continue to take the initiative to
provide new services and call package choices for consumers, however, such initiatives
must also be considered in the context of the development of sustainable competition and
the Commission‟s obligations pursuant to Section 3(d) of the Act.




7
    PUC Annual Report 2007, Table 8, page 32 and Table 9 Page 33.




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              Public Utilities Commission of Anguilla
        Telecom Decision PUC 2008-105, 8 December 2008

Revised NetSpeak Prices
71.    Pursuant to Section 20(2) (b) of the Act, and Section 12.9 and Schedule 1,
Paragraph 1.1 and Part 1 of Annex E of C&W’s License, the Commission hereby
approves the following prices for C&W‟s „NetSpeak‟ service, in part, reflecting the price
amendments filed by way of C&W‟s letter dated 12 September 2008. The revised prices
may be effective on or after 1 January 2009.

72.    The proposed prices for the following services are not approved pursuant to
Section 12.9 of the Company‟s license and the previously approved prices for these
services and service packages shall continue to be in effect:

                a. Plan C – price (EC$ 99.00) and components remain as previously
                   approved in Decision 2007-101;
                b. Basic Plan Extras:
                     i. Basic Calling Plans A and C combined or B and C combined –
                         EC$ 129.95 per month;
                     ii. Basic Calling Plans A, B and C combined – EC$ 159.95;
                c. Rates – Calls to Directory Assistance (411) same rates and
                   conditions as previously approved in Decision 2007-101.

1. Plan and Service Descriptions

Basic Plans A or B EC$ 69.00 per month
Basic Plan C – EC$ 99.00 per month
Includes One Basic Calling Plan, Anguilla local number, and Other Features listed in 2.
below.

Basic Calling Plan A: Unlimited calling to US and Canada

Unlimited Calling to US and Canada plan is to any fixed-line number and mobile
number, including toll-free numbers (i.e. 1-800 numbers) in those countries. Calls to
other special numbers (for example, 1-900 numbers) are not included in this plan.

Basic Calling Plan B: Unlimited calling to W. Europe and UK fixed numbers

Unlimited Calling to Western Europe and UK plan is to any fixed-line number in
Austria, Azores, Belgium, Canary Islands, Cyprus, Denmark, Finland, France, Germany,
Gibraltar, Greece, Greenland, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta,
Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey, UK
and the Vatican. Calls to mobile and special numbers are not included in this plan and
are charged as an out-of-plan call.




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               Public Utilities Commission of Anguilla
         Telecom Decision PUC 2008-105, 8 December 2008

Basic Calling Plan C: Unlimited calling to C&W Caribbean

Unlimited Calling to C&W fixed numbers in the Caribbean Islands where Cable &
Wireless operates: Antigua & Barbuda, Barbados, Bermuda, British Virgin Islands,
Cayman Islands, Dominica, Grenada, Jamaica, Montserrat, St. Kitts & Nevis, St. Lucia,

St. Vincent & the Grenadines, Trinidad & Tobago, and Turks & Caicos. Calls to third-
party operator phones are not included in this plan and are charged as an out-of-plan call.

Basic Plan Extras

Basic calling Plans A and B - EC$ 99.00 per month
Basic Calling Plans A and C combined or B and C combined – EC$ 129.95 per month;
Basic Calling Plans A, B and C combined – EC$ 159.95
Each basic plan includes unlimited calling to C&W domestic and Caribbean NetSpeak
numbers.

Optional Service Number:         $39.95 for Incoming Toll Free Number with 100
Minutes

NetSpeak also offers the option of adding a toll free number from USA, Canada, and UK
as a secondary number to your service. Toll-free numbers are randomly assigned. With
a toll-free number, everyone in those countries can call you for free. Per-minute charges
apply after the first 100 minutes.

Optional Service Number: $10.00 for Overseas Telephone Numbers

NetSpeak also offers the option of adding local fixed telephone numbers from the USA,
Canada, UK, and Netherlands as a secondary number to your service. Local numbers are
randomly assigned.

2. Key Terms and Conditions

NetSpeak is only available to Residential customers.

Basic Telecommunications Services Terms and Conditions and NetSpeak Terms and
Conditions apply.

Other Features included free of charge in Basic Plans include Call Waiting, Caller ID,
Call Return, Redial, Three-Way Calling, Call Blocking, Do Not Disturb, Speed Dial,
Language Selection and Call Forwarding. Voicemail is also provided free of charge, and
voicemail messages can be accessed via the NetSpeak phone, the Internet, or as email
messages.




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             Public Utilities Commission of Anguilla
       Telecom Decision PUC 2008-105, 8 December 2008



3. Rates for Out-of-Plan Calls

                                                                         EC$ per
                               Destination
                                                                         minute
    USVI, Puerto Rico                                                     0.525

    USA, Canada                                                           0.525

    UK & Ireland                                                          0.525
    Antigua & Barbuda, Aruba, Bahamas, Barbados, Bermuda,
    British Virgin Islands, Cayman Islands, Dominica, Dominican
    Republic, Martinique, French Antilles (St. Martin, St. Barts),
                                                                          0.525
    Grenada, Guadeloupe, Haiti, Jamaica, Montserrat, Netherlands
    Antilles, St. Marten, St. Kitts & Nevis, St. Lucia, St. Vincent &
    Grenadines, Trinidad & Tobago, Turks & Caicos Islands
    Albania, Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus,
    Czech Republic, Denmark, Estonia, Finland, France, Germany,
    Gibraltar, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein,
                                                                          0.525
    Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco,
    Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovak
    Republic, Slovenia, Spain, Sweden, Switzerland, Turkey
    Argentina, Belize, Bolivia, Chile, Colombia, Costa, Rica,
    Ecuador, El Salvador, French Guiana, Guatemala, Honduras,
                                                                          0.525
    Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay,
    Venezuela
    Australia, Bangladesh, China, Guam, Hong Kong, India,
    Indonesia, Israel, Japan, South, Korea, Macau, Malaysia,
    Maldives, Mauritius, New Zealand, Pakistan, Philippines,              0.525
    Seychelles, Singapore, South, Africa, Sri Lanka, Taiwan,
    Thailand
    Rest of World                                                         0.63
    Antarctica, Ascension, Cook Islands, Falkland Islands,
    (Malvinas), Solomon Islands, Guinea Bissau, Norfolk Islands,
                                                                          1.70
    Saint Helena, Sao Tome and Principe, Syrian Arab Republic,
    Vanuatu (Republic of)
    Cuba                                                                  2.70

    Inmarsat & Thuraya                                                    25.00




                                                                                   14
               Public Utilities Commission of Anguilla
         Telecom Decision PUC 2008-105, 8 December 2008



                                                                        EC$ per
                                Destination
                                                                        minute
     Overseas NetSpeak Numbers                                             Free

     Incoming Toll-Free (US, Canada, and UK)                               0.55
                                                      Day                  0.09
     Calls to Fixed Networks in Anguilla              Evening              0.07
                                                      Weekend              0.06
     Calls to Mobile Networks in Anguilla                                  0.60
     Calls to NetSpeak numbers in Anguilla                                 Free
     Calls to Emergency Services (911)                                     Free
     Calls to Directory Assistance (411) – per call
                                                                           0.50
     (2 free calls per month, 2 requests per call)




4. Other Charges



      Activation Fee (includes a Terminal Adapter)              EC$ 99.00
      Replacement Terminal Adapter Fee                            „■‟ ■
                                                                EC$ 300.00     .„ “■” EC$
      Early Termination Fee                                     EC$ 350.00



73.    As noted in Decision PUC 2006-101, 31 March 2006 and Decision PUC 2007-
101, 18 May 2007, the Commission, having reviewed the current application, the
submissions in reply to the public notice and C&W‟s reply comments, continues to
consider the NetSpeak service a „rate regulated service‟ within the meaning of the term as
defined in Part 1 of Annex E of C&W‟s license.




                                                                                       15
              Public Utilities Commission of Anguilla
        Telecom Decision PUC 2008-105, 8 December 2008

III Directions on Procedure
74.   The following direction on procedure is issued pursuant to section 31 of the
Telecommunications Administrative Procedures Regulations.

75.    The Commission directs CCC to file with the Commission, on or before 1
February 2009, the information referred to in their submission of 13 October 2008 (see
paragraphs 59 and 60).

76.     The Commission directs C&W to file with the Commission, on or before 1
February 2009, a copy of any current business and/or technology migration plan(s) and/
or any other plans for evolving their current legacy network to next generation networks
or to explain the absence of such plans.

77.     The Commission directs C&W to include in the next NetSpeak quarterly status
reports the average per month minutes of use per customer in each of the basic Plans and
Plan combinations i.e. monthly average minutes of use per customer for Plans A,B and C
and combined Plans A&B, A&C, B&C and AB&C.




Issued by the Commission at the Valley, Anguilla on this 8th day of December 2008




William Withers
Executive Chairman
Public Utilities Commission




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