Cable And Wireless Launches New Initiative As Merger Talks Continue

BRIDGETOWN, Barbados, CMC – The British telecommunications company, Cable and Wireless Communications (CWC), and Columbus International have announced plans to launch a series of special “Customer Panels” in 14 markets throughout the region.

The project, which began on Monday, is designed “to spark a constructive discussion about the proposed merger (and) these panels will present customers of both companies with a direct and organized platform to voice their concerns, share their opinions and express their service expectations,” the two companies said in a joint statement.

“The panels will also provide the two companies with an opportunity to gain first-hand feedback to aid in the development of a new consolidated strategy, built around their customers’ appeals,” the statement said, adding “CWC and Columbus, will also use the panels to give customers and stakeholders a greater understanding of how the merger will impact the Pan-Caribbean region.”

The St. Lucia-based Eastern Caribbean Telecommunications Authority (ECTEL) has already stated it would ensure that any new licence granted to CWC, to operate in the sub-region, will take into account the need for fair competition.

A statement issued following a special meeting of the ECTEL Council of Ministers last week, noted that in addition, the regulatory body will also suspend the announcement of a new “Price Cap Plan” until after the completion of the review of the applications by the parties involved, and amend the Price Cap accordingly.

The announcement followed a meeting here, to discuss the proposed merger amidst fears that it would result in the formation of a monopoly in the sub-region.

CWC chief executive, Phil Bentley, has given a commitment to Caribbean governments and regulators that if the company’s three billion US dollar acquisition of Columbus International is approved, the enlarged CWC will not negatively impact competition in the cable and broadband markets.

“In the Caribbean countries in which CWC and Columbus overlap—Jamaica, Barbados, St. Lucia, St. Vincent and Grenada—we know that we have to work closely with governments and regulators to ensure that our customers benefit and competition is not compromised.

“And that’s a commitment we happily make to all our stakeholders. I know that we have got a member of the Caribbean media here today, so I will repeat my commitment for your benefit: this is a transaction that will benefit all our customers and will not compromise competition. After all, our biggest competitor in the Caribbean will still be bigger than us after this deal,” he said.

In their latest statement, the two companies said that the “Customer Panel” discussions will highlight the pro-competitive nature of this deal, as well as the far-reaching benefits it will have on the development of the region’s infrastructure, and the furthering of its general information and communication technology (ICT) agenda.

The statement quoted John Reid, president of Columbus Communications as saying, “Our goal is to meet or exceed customer expectations, and place their needs at the very heart of the combined company. These panels provide an excellent opportunity for our customers to understand the vision of the new Company, and the benefits that they will enjoy as a result of this merger.”

While both companies have engaged in similar events in the past, these customer panels will provide CWC and Columbus with a chance to directly address this unique situation, the statement said.

“Given their ambition to become the region’s first 21st-century telecommunications provider, the panels will allow the organizations to make informed decisions once approvals are given, and when they are ready to consolidate their efforts to make the new Company, the region’s leader in customer service.”

Digicel, CWC’s biggest competitor in the Caribbean, has repeatedly stressed that approval of the transaction will provide CWC with market dominance in fixed broadband and in cable.