Citing, among other things, a $453 million decrease in revenue in the last fiscal year, TSTT has called in trade unions representing its workers for talks on restructuring. This was revealed in a media release on Monday.
The company blamed its losses on the covid19 pandemic and competition from new technologies, and suggested these negative effects would persist into the future.
TSTT said the increased use of digital apps such as WhatsApp and communications platforms like Zoom has resulted in the steady erosion of traditional voice revenue.
"In TT, fixed voiced calling in terms of minutes and calls have declined by 50 per cent over the past ten years, and mobile voice calling has declined by 20 per cent in the same period according to the annual TATT (Telecommunication Authority) market reports.
"In addition, the legacy costs associated with redundant technology in its existing operating structure, continue to have a crippling impact on TSTT's business and its results."
TSTT's revenue last fiscal year (up to March 31, 2021) fell by $453 million or 18 per cent less than the prior year.
It blamed the loss on the pandemic plus economic and technological factors unique to the TT market as a direct result of the global digital revolution in the telecommunications industry.
"Regionally and internationally, networks are under pressure. Internet traffic is growing exponentially, but the price per gigabyte is declining almost as rapidly, and the result is a downward pressure on revenue growth and margins.
"TSTT has had to focus on aggressively managing its expenses over the past year as these trends intensified, more so than its competitors who have global cost-economies of scale."
The company said it had already tried several initiatives, chiefly a cost-cutting drive that included containment of non-personnel costs.
The release cited TSTT CEO Lisa Agard saying, 'Given our current challenges, TSTT considers that it must now urgently restructure to remain competitive. We must move to an operating model that is more in line with industry benchmarks, and which gives us the ability to adapt and evolve with the constant developments in technology. This is our only option if we are to return to profitability.'
She said the industry has a new normal and TSTT has no choice but to adapt to it.
"Therefore, in keeping with the terms of our collective agreements, the employee representative unions have been invited to discuss the company's future. We look forward to meeting with them in the coming weeks to see how best we can work together to ensure our collective success."
Newsday asked her if the company's statement alluded to job losses. She replied, "As was stated in today's news release, TSTT has invited its employee representative unions to consultations on a restructuring of the company. As such it would be imprudent to comment on the outcome of the consultative process until it has concluded."
Union not surpr
