US embassy cable - 04VILNIUS1497

UNCLAS VILNIUS 001497 
 
SIPDIS 
 
STATE FOR EB/CIP/BA (TFINTON) AND EUR/NB (MGERMANO) 
COMMERCE FOR ITA/MAC/DAS/EUR (JBURGESS) 
 
E.O. 12958: N/A 
TAGS: ECPS, ETRD, BEXP, LH, HT23 
SUBJECT: SUCCESS STORY: AT&T AND LITHUANIAN TELECOM 
PROVIDER SETTLE RATE DISPUTE 
 
 
1.  Summary.  AT&T and Lietuvos Telekomas, Lithuania's 
largest fixed-line telecommunications service provider, 
concluded a new mobile call termination agreement, settling a 
dispute over rates in Lithuania.  Telekomas had threatened to 
block all AT&T incoming traffic if the two failed to arrive 
at an understanding, despite a framework agreement which 
requires a six-month notice of change of service.  End 
Summary. 
 
2.  AT&T sought assistance in October in resolving a dispute 
with Telekomas, Lithuania's largest fixed-line 
telecommunications service provider, over mobile call 
termination rates.  AT&T and Telekomas' rate agreement having 
expired in June, Telekomas notified the American carrier that 
it would block all AT&T incoming traffic as of October 15. 
Mary Hoberman, AT&T Director for International Public Policy, 
told us that negotiations had broken down because of 
Telekomas' attempts to raise rates arbitrarily and 
excessively.  She said that the threatened action and, in 
fact, the warning were in contravention of the companies' 
framework agreement (ITSA), which requires a six-month notice 
of change of service.  Hoberman described the threatened cut 
in service as "aggressive" and said the action would result 
in higher cost and lower quality of service for U.S. and 
Lithuanian customers as AT&T would have to route calls to 
Lithuania through other carriers. 
 
3.  Our subsequent interventions with the directors of 
Telekomas' Wholesale and International Carrier Service 
Departments, including a face-to-face meeting, resulted in 
the company agreeing not to block AT&T calls and to return to 
the negotiating table.  In November, AT&T and Telekomas 
concluded a new mobile termination rate agreement. 
Kelly