Regulator warns C&W to scrap plans to change rate structure

Panama's public services regulator ERSP warned dominant telco Cable & Wireless Panama (C&WP) it might face sanctions if it drops a basic residential tariff plan, La Prensa reported. ERSP chairman Alex Anel Arroyo said the telco's 1997 concession contract requires C&WP to obtain regulatory approval to scrap the plan, which charges US$6.27 a month and US$0.03 a minute for local calls. C&WP said it plans to transfer basic plan customers to its standard plan, which costs US$11.95 a month, on January 1, 2004. The company also offers a premium plan, which costs US$32.95 a month. UK-based telco C&W (NYSE: CWP) holds a 49% controlling stake in C&WP and the government retains the remainder.