Cable And Wireless And Columbus Communications Could Be In Breach Of Their Licences Says ECTEL

CASTRIES, St. Lucia, CMC – The Eastern Caribbean Telecommunications Authority (ECTEL) has warned that both Cable and Wireless (CWC) and Columbus Communications could be in breach of their licenses if they engage in activities, which can unfairly prevent, restrict, or distort competition.

The ECTEL statement Wednesday, was in response to the proposed purchase of Columbus by CWC announced earlier this month.

It said that in reviewing the preliminary information available on the planned purchase, under the current regulatory regime, telecommunications license holders including CWC and Columbus may be in breach of their licenses.

“The decision to combine business by the two companies can have a negative impact on the telecoms sector and this has provided further impetus for the revision of existing legislation and rules governing competition in the sector, including the proposed new Electronic Communications Bill,” the ECTEL statement reads in part.

ECTEL cautioned that this development could potentially result in a negative impact on competition, and reduce choice by consumers of both services and service providers.

“Since the advent of liberalization, the prices of all telecommunications and ICT services have been significantly reduced due to competition in the region.

“ECTEL is mindful that over the past 15 years there has been major development in the telecommunications sector under the guidance of independent regulators in the Eastern Caribbean.

“Increased monopolization therefore can erode the gains made by the liberalization, and create challenges for the entrance of new service providers,” ECTEL noted.

ECTEL said both itself and the National Telecommunications Regulations Commission in the member states will intensify collaboration with other regulators in the Caribbean region, to seek further information in order to advise member governments on the issue.

The sub-regional body claims that it urged the OECS Commission to move with some haste to establish the OECS Competition Commission.

In its latest comment on the alliance Wednesday, Digicel called on all regulatory bodies across the Caribbean “to see through the smokescreen put up by CWC/Columbus and subject the proposed transaction to the fullest regulatory scrutiny.”

The company was responding to CWC’s recent comments in the media about the money it was spending on the acquisition, and its assertion that Digicel was suffering from “sour grapes”.

“Digicel can confirm that it looked at Columbus Communications several months ago, and that it was Digicel’s assessment that the value of Columbus Communications was no more than US$2 billion. The assertion by the UK listed CWC that Digicel is suffering from “sour grapes” couldn’t be further from the truth as the reality is Digicel was not prepared to overpay for the business–unlike CWC,” Digicel said in the statement.