Cable & Wireless Is Told To Raise Rates Again

Thursday, June 24, 2004

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Reader comments:

• So let me get this straight. I go to Cable & Wireless and sign up for cellular service at an agreed upon rate. My contract is for one year. I buy a phone, fill out a contract, sign it, pay C&W, take my phone and my receipt and go home.
  
  Now, a few months later, the ICTA says the rates C&W charge are too low, so C&W tells me that they have to charge me more than the rate at which I contracted with them originally. Is this right or even legal?
  
  This sets a very dangerous precedent. Companies can now come into the market, undercut incumbents - effectively “buying” the business - and then AFTER they’ve established contracts with customers, raise their rates pursuant to the directive from an authority.
  
  I thought the three main elements of a contract were offer, acceptance and consideration. C&W offered their services to me, I accepted and I gave consideration in the form of money. You would think that would be it – at least for the term of the CONTRACT.
  
  However, the ICTA has told C&W their rates are too low and, now that competitors have had time to review their rate structures, C&W is to raise their rates to where they are not as competitive.
  
  It seems to me that if outside companies truly wanted to compete, they wouldn’t cry when an incumbent who has been here for many years (and spent millions and millions of dollars not only on telecommunications but on local, regional and international civic projects) adjusts its rates to maintain a client base and a viable revenue stream.
  Instead, outside competitors who want to break into an established market should do so through innovation, pricing and service. Such is not the case with AT&T or Digicel.
  
  These “competitors” have chosen instead to dry their eyes on the sleeves of a newly formed authority that has shown more sympathy and favour to the new kids on the block than they’ve shown fairness to an established industry and community leader.
  
  Say what you will about Cable & Wireless, but don’t try to text to an AT&T phone. And as far as Digicel is concerned – my wife’s Digicel T-shirt works better than her phone.
  
  Hats of to the ICTA – Impeding Competition, Trade and Advancement. I would say you provide an invaluable service to the Cayman Islands, but then you’d probably just raise that rate too - Concerned Subscriber
  
   
• This entire fiasco by Julianna and her ICTA crew really raises the blood pressure of those of us (Caymanians), who can clearly see that this is politically influenced, with no thought to anyone who has to suffer from this. Digicel, according to past news reports, is partially owned by "Rich UDP supporters" who we don't need to name. They are calling the shots in this election year, as always, and this is the first time that I ever remember seeing such blatant crucifixion of a long-established Caymanian company, that has been serving the public faithfully. I support Cable and Wireless, and feel that while competition from other companies is healthy (in ANY type of business) this "Witch hunt, by the Witches" is an outrage. I sincerely wish that the UDP will be just as vehement in NOT being anti-competitive, in their actions during this election. But that is obviously too much to expect. - Eyes Wide Open Caymanian

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