Cost of International Phone Calls to Rise 50%
10 November 1994
By Anne Barnard
International telephone rates are set to jump about 50 percent next week, for the first time making it more expensive to call the United States from Moscow at peak hours than to dial in the opposite direction.
On Nov. 15, the cost per minute of calling the Americas and Australia during peak hours from 8 A.M. to 8 P.M. will rise to 8,100 rubles ($2.61) from 5,400, a spokeswoman for Moscow Intercity and International Telephone said Wednesday. The company, which relays all calls abroad from Moscow, is increasing rates to offset growing costs, she said.
Callers dialing from the United States pay $2.25 for the first minute and $2.12 per minute thereafter during peak hours from 5 A.M. to 6 P.M. Moscow time, an AT&T operator said. Sprint, another U.S. long distance company, offers round-the-clock rates to Russia from as low as $1.37.
Callers to Europe will also find that at times it is better to receive calls than make them.
Calls from Moscow will cost 3,450 rubles per minute during peak hours, 2,300 rubles the rest of the time on weekdays and 1,725 rubles on weekends.
The cheapest rate for a call from France to Moscow is about 53 cents a minute, slightly cheaper than the Russian weekend rate. The standard rate from the Netherlands is $1, lower than Russia's peak rate.
Just two years ago, most international calls from Russia were a bargain at pennies a minute, although it was often difficult or impossible to obtain an international line. A series of increases, including a dramatic 250 percent rise in June, have brought rates within range of Western prices -- and in some cases bumped them higher.
Service is improving, but it often lags behind Western standards. It can still take several tries to get an open international line, calls are often cut off and shaky connections hamper the use of high-tech equipment such as faxes and modems.
Nigel Leech of Comstar, a communications company that runs a satellite telephone network in Moscow, said rising telephone rates would drive more and more international callers into the arms of private networks as the gap in prices closes.
"With the price hikes they've incurred, they should be able to demand better services," he said.
Alexander Bachmanov, top spokesman for the Communications Ministry, which is working with telephone companies nationwide to improve long distance services, said the new rates might make some callers turn to the competition or ask their friends and colleagues to call them from abroad rather than dialing from Moscow.
But he said rates nearing Western levels were justified by planned improvements. AT&T recently signed a $200 million contract to overhaul, expand and digitalize the Moscow telephone network, and other joint projects with foreign investors will add 50,000 long distance lines nationwide by 1996. he said.
Lidiya Suvorova, the telephone company spokeswoman, said the increases were necessary to offset rising energy and maintenance costs, but she acknowledged that the company feared losing the business of ordinary Muscovites.
"If it's not in the family budget, people are just going to stop calling," she said.
Off-peak calls to the United States will cost 5,400 rubles ($1.74) per minute, not much less than the AT&T off-peak rate of $1.81 per minute from the United States. Weekend calls will still be a bargain at 4,050 rubles per minute.
Peak calls to Asia will cost 6,750 rubles per minute, regular calls 4,500 and weekend calls 3,375.
Calling Africa will be the most expensive at 9,750 rubles per minute at peak hours, 6,500 off peak and 4,875 on weekends.
The latest hike further narrows the gap between the per-minute costs of private and state networks, said Leech of Comstar, which will lower its prices Dec. 15 to $1.72 per minute to England and $2.99 per minute to the United States.
He said Comstar is increasingly attracting private households, not just businesses, willing to pay the $1,025 start-up cost of tapping into its satellite network.
On Nov. 15, the cost per minute of calling the Americas and Australia during peak hours from 8 A.M. to 8 P.M. will rise to 8,100 rubles ($2.61) from 5,400, a spokeswoman for Moscow Intercity and International Telephone said Wednesday. The company, which relays all calls abroad from Moscow, is increasing rates to offset growing costs, she said.
Callers dialing from the United States pay $2.25 for the first minute and $2.12 per minute thereafter during peak hours from 5 A.M. to 6 P.M. Moscow time, an AT&T operator said. Sprint, another U.S. long distance company, offers round-the-clock rates to Russia from as low as $1.37.
Callers to Europe will also find that at times it is better to receive calls than make them.
Calls from Moscow will cost 3,450 rubles per minute during peak hours, 2,300 rubles the rest of the time on weekdays and 1,725 rubles on weekends.
The cheapest rate for a call from France to Moscow is about 53 cents a minute, slightly cheaper than the Russian weekend rate. The standard rate from the Netherlands is $1, lower than Russia's peak rate.
Just two years ago, most international calls from Russia were a bargain at pennies a minute, although it was often difficult or impossible to obtain an international line. A series of increases, including a dramatic 250 percent rise in June, have brought rates within range of Western prices -- and in some cases bumped them higher.
Service is improving, but it often lags behind Western standards. It can still take several tries to get an open international line, calls are often cut off and shaky connections hamper the use of high-tech equipment such as faxes and modems.
Nigel Leech of Comstar, a communications company that runs a satellite telephone network in Moscow, said rising telephone rates would drive more and more international callers into the arms of private networks as the gap in prices closes.
"With the price hikes they've incurred, they should be able to demand better services," he said.
Alexander Bachmanov, top spokesman for the Communications Ministry, which is working with telephone companies nationwide to improve long distance services, said the new rates might make some callers turn to the competition or ask their friends and colleagues to call them from abroad rather than dialing from Moscow.
But he said rates nearing Western levels were justified by planned improvements. AT&T recently signed a $200 million contract to overhaul, expand and digitalize the Moscow telephone network, and other joint projects with foreign investors will add 50,000 long distance lines nationwide by 1996. he said.
Lidiya Suvorova, the telephone company spokeswoman, said the increases were necessary to offset rising energy and maintenance costs, but she acknowledged that the company feared losing the business of ordinary Muscovites.
"If it's not in the family budget, people are just going to stop calling," she said.
Off-peak calls to the United States will cost 5,400 rubles ($1.74) per minute, not much less than the AT&T off-peak rate of $1.81 per minute from the United States. Weekend calls will still be a bargain at 4,050 rubles per minute.
Peak calls to Asia will cost 6,750 rubles per minute, regular calls 4,500 and weekend calls 3,375.
Calling Africa will be the most expensive at 9,750 rubles per minute at peak hours, 6,500 off peak and 4,875 on weekends.
The latest hike further narrows the gap between the per-minute costs of private and state networks, said Leech of Comstar, which will lower its prices Dec. 15 to $1.72 per minute to England and $2.99 per minute to the United States.
He said Comstar is increasingly attracting private households, not just businesses, willing to pay the $1,025 start-up cost of tapping into its satellite network.
|
|
Tweet |
|
This article has no comments. Be the first to leave a comment |
Discussion
Comments
To post comments you must be registered
Comments via Facebook
Most Read
1.
McFaul Faces Kremlin Scorn Once Again
The Foreign Ministry assailed U.S. Ambassador Michael McFaul for comments the ministry said went "far beyond the bounds of diplomatic etiquette."
2.
Berezovsky Investigated for Inciting 'Mass Disorder'
The Investigative Committee has opened an inquiry against self-exiled businessman Boris Berezovsky, who recently pledged a $1.5 million bounty for the arrest of Vladimir Putin.
3.
Radio Journalist Stabbed Outside Apartment Building
A journalist for Mayak radio was clinging to life Tuesday after being stabbed outside his apartment building by an unknown attacker.
4.
Chernobyl Horror Film Called Disrespectful, A Joke
Horror film "Chernobyl Diaries," with its ghostly tale of terror near the infamous, abandoned nuclear plant hits theaters after protests that it sensationalizes a disaster that had tragic human consequences.
5.
Ukraine's Behavior in WTO Has Negotiators Scratching Their Heads
Laos, a small nation dependent on aid and rice farming, wants to join the World Trade Organization. WTO powers including the United States, China and the European Union want it to.
6.
Suspect Detained in Killing of Furniture Magnate
An alleged organizer of a murder of Russian furniture magnate Mikhail Kravchenko has been detained in the Moscow region.
7.
Russky Island Getting Posh on Schedule
After global leaders conclude the annual Asia-Pacific Economic Cooperation forum in September, the purpose-built $2.3 billion conference center on a remote island off the coast of Vladivostok will become a university.
8.
The Nixon Option for Iran
Boldness of the sort displayed by U.S. President Richard Nixon in opening discussions with China is needed now in the negotiations over Iran's nuclear program.
9.
$13.4Bln Football Bill Puts Ukraine in the Hole
Ukraine may never recover all of the billions of dollars it has spent to co-host next month's European football championship, and the outlay might complicate its chances of servicing its debt.
10.
McFaul and State Department Respond to Attack
The U.S. ambassador and the U.S. State Department said they were surprised by blistering criticism from the Foreign Ministry regarding comments McFaul made to students last week.
1.
Tabloid: Superjet Downed by U.S. Industrial Sabotage
A tabloid claims that Russian intelligence agencies are investigating the possibility that the U.S. military may have brought down the Sukhoi Superjet that crashed in Indonesia.
2.
McFaul Faces Kremlin Scorn Once Again
The Foreign Ministry assailed U.S. Ambassador Michael McFaul for comments the ministry said went "far beyond the bounds of diplomatic etiquette."
3.
Red Square Flyboy Regrets Air Stunt
When Mathias Rust landed his white Cessna on Red Square on May 28, 1987, he had placed all his hopes for world peace in Mikhail Gorbachev.
4.
Sweden Wins Eurovision; Grannies Take Second
Sweden’s Loreen won the Eurovision Song Contest in Azerbaijan on Sunday before an international TV audience of 100 million, days after angering Azeri authorities by meeting rights activists critical of the host country’s human rights record.
5.
Village Grannies Make It to Eurovision Finals
Russia's group Buranovskiye Babushki has made it into the finals of the Eurovision Song Contest in Baku, Azerbaijan, bringing the elderly folk singers from a far-off Russian village to the attention of more than 100 million viewers around the world.
6.
Protest and Chaos Seen in Kudrin-Ordered Study
Continued protests in Russia will likely lead to violence or chaotic change, according to a new study ordered by the former finance minister.
7.
Ukraine in Uproar Over Status of Russian Language
Ukraine's ruling party has triggered violent protests with a move to upgrade the official role of Russian, a sensitive issue opponents say will split the country.
8.
150 Detained at Anti-Kremlin Rallies
About 150 people were detained Sunday as scores of people gathered for a series of anti-government demonstrations in Moscow and St. Petersburg.
9.
Tensions Rise as Opposition Leaders are Freed
Sergei Udaltsov and Alexei Navalny emerged from prison Thursday, while a dramatic standoff erupted at a State Duma hearing over a bill that would hike fines for illegal demonstrations.
10.
More Public Figures Accused of Flouting Road Rules
Following the president's order to cut the number of officials entitled to use flashing lights to skirt through traffic, several incidents of alleged abuse involving high-profile figures have come to light.
1.
Hundreds of Arrests Set Grim Backdrop for Victory Day Celebrations
As Moscow gears up to celebrate its victory in World War II, 67 years ago Wednesday, the shadow of political conflict shrouds the capital as hundreds of arrests cloud Victory Day festivities.
2.
Russian Satellite Takes Highest-Ever Resolution Picture of Earth
A stunning 121-megapixel snapshot of the Earth was taken by a Russian weather satellite in what is thought to be the highest resolution picture of the planet ever taken from space.
3.
Bodies, No Survivors Spotted at Superjet Crash
Search and rescue helicopters and volunteers struggling through thick forest and mountainous terrain spotted bodies but no survivors on the Indonesian mountainside where a Sukhoi Superjet 100 crashed by the time darkness forced an end to the search Thursday night.
4.
Tabloid: Superjet Downed by U.S. Industrial Sabotage
A tabloid claims that Russian intelligence agencies are investigating the possibility that the U.S. military may have brought down the Sukhoi Superjet that crashed in Indonesia.
5.
Mysterious Photos Reveal an Unseen WWII
After the end of World War II, Paul Sadler returned home to Chicago with three German books and a photo album from the Dachau concentration camp.
6.
Furniture Magnate Shot Dead in Mercedes in Moscow Region
A 46-year-old furniture magnate was killed with six gunshot wounds to the head and chest early Sunday as he arrived in his Mercedes at his home in the Moscow region.
7.
Vladivostok Bridge Climbers Fined 300 Rubles Each
Three thrill-seekers who climbed two Vladivostok bridges earlier this week and took photos from the top were fined 300 rubles ($10) each for trespassing.
8.
New Cabinet Has Familiar Cast of Characters
President Vladimir Putin on Monday announced the makeup of the new Cabinet answering to Putin and Prime Minister Dmitry Medvedev, with three-fourths of the members having been replaced.
9.
Superjet Missing in Indonesia With 50 on Board
A dark cloud was cast Wednesday on the revival of Russia’s aviation industry when a Sukhoi-built Superjet 100 with 50 people on board disappeared from the radar screens of Indonesian flight controllers.
10.
Why Putin's Days Are Numbered
On Monday, Vladimir Putin will take the presidential oath of office for the third time. After 12 years in power, Putin has increased his control over the country's major institutions, the siloviki and state bureaucracy.


