Telekomas billing system attacked

  • 2001-01-11
  • Darius James Ross
VILNIUS - It is rare for a week to go by without an attack on Lietuvos
Telekomas in the Lithuanian media. On Jan. 8, the daily Respublika
took issue with the company's billing system.

In some countries local telephone service is provided for a fixed
rate and calls are unlimited. In Lithuania, like the rest of Eastern
Europe, subscribers pay for every call they make regardless of
whether it is local or long-distance. In addition, call times are
rounded up so that a call lasting one minute and one second is billed
as a two-minute call.

This is expected to change toward the end of this year, but Telekomas
is holding its cards close to its chest.

"We have committed ourselves to implementing a new billing system for
all of our subscribers across the country but I cannot say exactly
when it will be made available," said spokeswoman Diana Rociene.

She explained that extensive testing needed to be done. Rociene did
not know what the new billing interval would be. She did say that a
new system is presently in place for Telekomas' 200 largest corporate
customers.

Respublika quoted MP Audirius Butkevicius as saying that the average
Lithuanian pays 15 percent more for telephone services than they
should. The billing system also affects users of the Internet. Each
time a subscriber does not succeed in accessing his or her service
provider a one-minute telephone call is billed.

A further problem has developed in rural areas of Lithuania. As of
Jan. 1, Telekomas is no longer contractually obliged to provide
telegraph and telephone services in Lithuanian post offices. While
Lithuania's urban areas are rapidly seeing more coverage and
digitization of phone lines, people in the country often do not have
telephones in their homes. For rural inhabitants, using a telephone
at the post office was an essential telecommunications lifeline.
Tapio Paarma, Telekomas' general manager has stated that one option
is to install telephone booths in rural areas. He has also invited
the Post Office's general director, Jonas Salavejus, to negotiate a
new contract for providing telephone services.

Life at Telekomas is far from dull. During the month of December,
Paarma was also the target of mudslinging by a member of parliament
with the New Union.

Gedeminas Jakuvonis spent two weeks claiming that Paarma had
"exceeded his authority" while previously working in Latvia for
Lattelekom and that he had been effectively fired from his job by
shareholders. The story was picked up by many Lithuanian media
outlets. Jakuvonis later tripped over his own words by stating that
de jure Paarma had not been fired. Paarma said that "the statements
relating my name to the notorious recall from the position, the
so-called scandalous agreements and lawsuits, are wrong and
misleading society, and they (damaged my reputation.)" He has gone so
far as to threaten Jakuvonis with a libel suit.

Lietuvos Telekomas was privatized by the Lithuanian government in
September, 1998. Sixty percent of its shares are held by Amber
Teleholding A/S, a consortium of the telecommunications operators
Telia of Sweden and Sonera of Finland. Telekomas had revenues of 980
million litas ($245 million) in 1999, up from 540 million litas ($135
million) in 1996. The company has reduced its staff by 2,700
employees, quadrupled capital expenditures and tripled the rate of
digitization over the same time period.

According to Lithuanian telecommunications law, Lietuvos Telekomas
presently has a monopoly on providing fixed-line telephone services
to subscribers in the country until Dec. 31, 2002. Following this
date, the market will be liberalized and anyone will be able to
provide this service.