FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of: January 14, 1999
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TRICOM, S.A.
(Translation of registrant's name into English)
AVENIDA LOPE DE VEGA NO. 95, SANTO DOMINGO, DOMINICAN REPUBLIC
(Address of principal executives offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82-_________
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TRICOM
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Jaime Garcia Robin Weinberg
TRICOM, S. A. DEWE ROGERSON
Ph (809) 476-4044/4054 Ph (212) 688-6840
e-mail: [email protected] e-mail: [email protected]
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TRICOM INCREASES RESIDENTIAL SERVICE RATES
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(Santo Domingo, Dominican Republic, January 14, 1999)
TRICOM (NYSE:TDR) announced today that it would implement price increases in
residential monthly rent charges as well as measured local service rates. These
measures are to be accompanied by a decrease in prices for international long
distance and installation fees, as well as a gradual decrease of the
interconnection access charge. The changes will be effective as of January 1,
1999, as part of the process of price liberalization initiated under the new
General Telecomunications Law, and follow the announcement of similar price
adjustments by TRICOM's principal competitor, Codetel.
The General Telecommunications Law was approved on April 15, 1998, as a result
of a joint effort by the Dominican Government, the telecommunications industry,
and the International Telecommunications Union (ITU). The centerpiece of this
legislation is the creation of an autonomous regulator, the rate rebalancing of
first residential line tariffs, thus eliminating subsidies of these lines by
international long distance, and the adjustment of interconnection fees to
reflect marginal costs.
As part of the rebalancing plan, TRICOM will increase the price per minute of
measured local service to RD$0.14 from RD$0.10 in January, and, thereafter,
adjust it in gradual increments of RD$0.01 every month from February to
December, until it reaches RD$0.25 at year's end. Local service rent will also
increase by 80% on average. Together with these increases, TRICOM will reduce
the prices of international long distance calls to the U.S. by 26%, and
installation fees for new residential lines by 24%. Additionally,
interconnection fees for the telecommunications industry are expected to
gradually decline throughout the year.
With the rate rebalancing process, the Dominican telecommunications industry
will receive increased recurrent revenues from customers, and improve the
returns and profitability of its local line investment. This, together with the
increase in demand stemming from reduced installation fees, should encourage
continued local network expansion. The Company believes its ability to rapidly
cover extended areas in the major cities of the Dominican Republic through its
Wireless Local Loop (WLL) network will better position it to meet this increased
demand.
TRICOM's CEO, Arturo Pellerano, endorsed the rate rebalancing as a highly
positive step: "We believe everyone should be entitled to telecommunications
services at reasonable prices. Rebalancing will help expand the demand for
telephone service in the Dominican Republic, and contribute to the continuation
of the country's already strong economic growth. TRICOM is committed to
providing a reliable, high-quality communications solution to its customers'
needs. This commitment to excellence, coupled with the fact that we operate in
the fastest growing economy in Latin America, is what has made us one of the
fastest growing telecommunications providers in the region."
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TRICOM is the sole alternative provider of full service telecommunications in
the Dominican Republic, and has long distance operations in the United States.
Since it began operations in 1992 as a low-cost international long distance
service provider, the Company has expanded its services to include basic local
service, national long distance, cellular, paging and Internet access.
For additional information, please visit TRICOM's website at
http://www.tricom.net or contact our Investor Relations department at the above
number.
# # #
This news release contains certain "forward-looking statements" (as described in
Section 21E of the Securities Exchange Act of 1934) that are based on the
beliefs of the Company's management, as well as assumptions by, and information
currently available to, the Company's management. The words "anticipates,"
"believes," "estimates," "expects," "plans," "intends" and similar expressions
are intended to identify these forward-looking statements, but are not the
exclusive means of identifying them. These forward-looking statements reflect
the current views of the Company or its management and are subject to certain
risks, uncertainties and contingencies which could cause the Company's actual
results, performance or achievements to differ materially from those expressed
in, or implied by, these statements. In particular such risks include, but are
not limited to, the following factors: competition; declining rates for
international long distance traffic; opposition to increased rates for basic
local service; the Company's significant capital expenditure requirements and
its need to finance such expenditures; the inability of the Company to expand
its local access line network in a timely manner and within the amount budgeted
for such capital expenditure program; the inability of the Company to manage
effectively its rapid expansion; the continued growth of the Dominican economy,
demand for telephone services in the Dominican Republic and moderation of
inflation; and the continuation of a favorable political and regulatory
environment in the Dominican Republic.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
TRICOM, S.A
Dated: January 18, 1999 By: /s/ Carl H. Carlson
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Carl H. Carlson
Executive Vice President
and Member of the
Office of the President
