Newtel Solutions, the first competitor for monopoly Jersey Telecoms, has cut its rates for peak time phone calls to the UK to 6.75 pence per minutes - 10% below Jersey Telecom's published rate, which was itself reduced just a month ago.
Newtel's Global Call service already offers international phone calls at 15% below Jersey telecom's rates.
Peter Funk, Managing Director, said that Newtel meant to maintain the differential, and that if Jersey Telecom made further cuts, it would match them.
Both firms are committed to expensive capital investment programmes, so the scope for further cuts may be limited unless they generate increased traffic.
Newtel, which commenced operations in Jersey only last year, has 5,000 cable subscribers so far, taking television, Internet and telephone services. While it awaits the granting of a Public Services Telephone Network license, Newtel has to use Jersey Telecom's infrastructure to deliver its own phone services.
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