Hawaii-Guam phone
rates to plummet

Thanks to an FCC ruling,
calls to and from the U.S. territory
will be subject to domestic rates
starting July 1

By Rob Perez
Star-Bulletin

The link between Guam and Hawaii becomes a little stronger next month when the U.S. territory joins the rest of the country -- telephonically speaking.

Starting July 1, when someone from Hawaii calls Guam and vice versa, the call will be considered domestic, not international as it is now. And rates will drop by more than 90 percent in some cases to reflect the switch in designation.

The change will mean savings -- in some cases significant -- for Hawaii residents and companies that use regular phones lines to call Guam. (Many Hawaii businesses that frequently call their Guam offices do so on special dedicated lines and will be unaffected).

The inclusion of Guam in the domestic phone network also will greatly simplify rate structures, making it easier for customers to calculate the cost of a calling the Western Pacific island or to compare carriers' rate plans.

"I think this will definitely increase the amount of traffic we'll see," said Nonie Toledo, an executive with Sprint Hawaii. "Based on pricing, people are sometimes hesitant to place phone calls," so the new rates should generate more traffic.

For residential calls to Guam, Sprint currently charges $2.80 for the first minute and $1.50 for each additional minute during peak calling hours of 10 a.m. to 11 p.m. Monday through Friday. All other times are charged at $1.94 for the first minute and 97 cents for each additional one.

On July 1, those rates drop to 10 cents a minute from 5 p.m. to 7 a.m. Monday through Friday and all weekend and 25 cents a minute at all other times.

Rates for businesses not using dedicated lines will see similar savings, depending on their rate plans.

At AT&T, residential customers on the carrier's flat-rate plan will pay the same rate they pay for calls to the U.S. mainland: 15 cents a minute. Those customers now pay $1.91 a minute for calls to Guam from 10 a.m. to 11 p.m. daily and $1.22 all other times.

GTE's rates likewise will drop significantly. It will charge 17 cents a minute during off-peak hours (all weekend and 5 p.m. to 8 a.m. during the week) and 34 cents during peak hours.

Customers on GTE's discount plans now pay $1.39 a minute from 2 p.m. to 8 p.m. Monday through Friday and 46 cents a minute all other times.

An MCI spokesman was unable to provide rate information for his company.

The Federal Communications Commission ordered Guam's inclusion in the domestic phone network.