The Register's Bill Ray reports that Digicel is suing rival Cable & Wireless for "engaging in illegal and uncompetitive practices which delayed Digicel's expansion into Caribbean markets and cost the company hundreds of millions of pounds."
"Between 2002 and 2006, Cable & Wireless has been accused of refusing to interconnect with Digicel customers in various countries, as well as charging unreasonable termination fees once interconnections were established," Ray writes. "In some countries the government has been forced to step in and set termination fees, as well as mandating interconnection."
In response, Ray says, Cable & Wireless "has dismissed the claims as a 'spoiling tactic' that has no foundation."
More here from the Guardian ... more here from the Jamaica Gleaner ... more here from the Jamaica Observer ... more here from the Antigua Sun ... and the press release is here.
http://www.wireless-weblog.com/50226711/digicel_sues_cable_wireless_for_a300_million.php
Cable & Wireless sued by Caribbean telecoms company Digicel
Published on Friday, July 20, 2007
By James Lumley
LONDON, England (Bloomberg): Cable & Wireless Plc, the UK's second-biggest phone company, is being sued by Digicel Group Ltd., a Caribbean and Central American telecommunications operator owned by Irish billionaire Denis O'Brien.
The company filed a lawsuit on Thursday against Cable & Wireless at the High Court in London, Digicel said in an e-mailed statement. The company alleges Cable & Wireless impeded its entry into telecommunications markets in the English-speaking Caribbean.
"We are extremely frustrated with the continual illegal obstructions that we have encountered from C&W," Digicel's O'Brien said in the statement. The company is seeking "several hundreds of million of pounds" in damages.
The lawsuit alleges Cable & Wireless tried to prevent the company from starting competing mobile-phone networks in St Lucia, St Vincent & the Grenadines, Grenada, Barbados, the Cayman Islands, Trinidad & Tobago and the Turks and Caicos Islands. The obstructions took place between 2002 and 2006, the statement said.
Cable & Wireless said it will "vigorously" defend itself. "We have received an unspecified claim this morning," Cable & Wireless said in a statement read by outside spokesman James Wyatt-Tilby. "We don't believe it has any foundation."
http://www.caribbeannetnews.com/news-2629--45-45--.html
HIGH COURT ACTION BY DIGICEL AGAINST CABLE & WIRELESS OVER UNLAWFUL BEHAVIOUR .
LONDON, UK, 19 July 2007. Digicel Group Ltd (“Digicel”), the fastest-growing wireless telecommunications operator in the Caribbean and new entrant to the Central American market today issued a claim in the English High Court against Cable and Wireless plc (“C&W”) and various of its subsidiaries, seeking multi-million pound damages.
Digicel claims that C&W was engaged in illegal behaviour by impeding and delaying Digicel’s entry into various telecommunications markets in the English-speaking Caribbean.
Digicel also believes that it has been the victim of a co-ordinated effort on C&W’s part to prevent and delay Digicel launching competing mobile telephone networks in St Lucia, St Vincent & the Grenadines, Grenada, Barbados, the Cayman Islands, Trinidad & Tobago and the Turks and Caicos Islands.
The obstructions and delays by C&W, between 2002 and 2006, have resulted in substantial damages and as a result Digicel’s claim covers:
Losses of revenue, profits and market share;
Restitutionary damages from C&W for the gains and benefits made by C&W as a result of its unlawful conduct and;
Exemplary damages (compensation in excess of actual damages) and interest.
The damages sought by Digicel should amount to several hundreds of millions of pounds.
It is expected that the claim will come to the High Court in 2008.
Commenting on the claim Denis O’Brien, Chairman of Digicel said; “We are extremely frustrated with the continual illegal obstructions that we have encountered from C&W. We believe that a successful claim will not only compensate Digicel for the losses it has suffered but also that it will put an end to the anti-competitive practices of C&W. This will be of undoubted benefit to all network operators and more importantly all mobile users in the Caribbean.”
Contact:Tim Brown
Mere Consultancy for Digicel
Tel: +44 (0)7880 747474
E-mail: mailto:tim.brown@%20mereconsultancy.com
NOTES FOR EDITORS
Background:
For mobile telephone services to be provided by a new provider, it is necessary for them to ‘interconnect’ with any existing telecommunications provider operating a public telecommunications network in a territory.This is a physical process between two networks, without which customers of one network cannot call customers of another network. Local telecommunications legislation in the territories generally provides that any telecoms provider shall not refuse, obstruct or in any way impede another provider from making an interconnection.
In 2000 Digicel identified an opportunity in the Caribbean telecommunications market at a time when liberalisation and the introduction of competition across the region were underway.
Digicel particularly identified a potentially lucrative opportunity in the mobile telephone market in the Eastern Caribbean region because there was a low take-up of mobile phones within the residential population and Digicel was able to offer more modern technology and a better service than the monopoly provider, C&W.
Digicel recognised that a quick launch into the new market was important to coincide with the peak time for acquiring mobile phones (Christmas) and to attract new potential subscribers.
In 2000/2001 Digicel launched its mobile telecoms business in Jamaica very successfully, acquiring the necessary licence and achieving interconnection, albeit after experiencing some initial resistance from C&W, who until then had enjoyed a monopoly as sole provider. Digicel established its new GSM mobile network rapidly and achieved a high degree of market share very quickly.
Planning to expand into countries affiliated with the Organisation of Eastern Caribbean States (OECS – St Lucia, St Vincent & the Grenadines and Grenada) and Trinidad & Tobago, Barbados and Guyana, Digicel created operating subsidiaries in the territories identified above with a view to obtaining licences or concessions to operate mobile telecoms networks on these islands.
In the period from 2002 to 2006, Digicel was awarded licences to establish mobile telephone services in the territories which are the subject of this claim, and in each case immediately started the process to facilitate interconnection with C&W.
Without exception, in each territory, Digicel experienced resistance and obstruction from C&W. Indeed, in 2002 an internal strategy document produced by C&W revealed that C&W was intentionally delaying Digicel’s entry into these markets for as long as possible.This strategy, and the actions it gave rise to, clearly breached C&W’s statutory duties.
In St Lucia the launch by Digicel was delayed from before Christmas in 2002 until late March 2003; in SVG the launch was delayed by over 6 months; in Grenada it was delayed by 5 months; in Barbados by over 6 months; in Cayman by over 2 months; in Trinidad & Tobago by at least 4 months and in Turks and Caicos the launch was delayed by over 3 months.
Aside from lost market share and future profits, Digicel lost revenue from call charges and interconnection fees payable by C&W in respect of inter-network calls originating on C&W’s networks, costs and expenses arising from the unlawfully protracted process of interconnection in each territory, costs and expenses arising from the delayed launches, and lost management and staff time dealing with C&W’s unlawful behaviour.The claim is expected to total some hundreds of millions of pounds.
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