Community
Cable & Wireless strikes deal for Caribbean Cayman Islandsnow in negotiations
Mr. Erral Miller
By Canute James in Kingston, Jamaica/ Courtesy The FinancialTimes
According to a news report in the UK's FinancialTimes, after months of contentious negotiations and public quarrels,Cable and Wireless, the UK telecommunications company with a regionalmonopoly, and five eastern Caribbean governments have agreed atimetable for liberalisation.
Several regional and international companieshave already indicated an interest in entering the region's telecombusiness, according to government officials.
The five governments - Dominica, Grenada,St Kitts, St Lucia and St Vincent - and C&W have agreed thatafter a transitional period ending on April 1 next year, C&W'sdominance will end and telecom services will be opened to competition.
Competition will first start in domesticmobile services, internet services (but with restrictions on voiceservices), customer premises equipment, resale of internationalswitched minutes using C&W's network and satellite facilitiesto serve call centre and data entry businesses. This will be followedby competition in other telecom services.
"C&W is committed to liberalisationand we are pleased that we have been able to achieve this,"said Errald Miller, the company's chief executive officer forthe Caribbean and Atlantic Islands. "We are keen to see astrong, fair regulatory framework put in place. Some challengingmonths lie ahead but together we can resolve any problems. Whatwe are doing sets a great example for what can be achieved whenparties work together in a professional and focused way."
The deregulation of the company's regionalmonopoly started two years ago, with an agreement with Jamaicafor an early termination of C&W's exclusive licence. Similarnegotiations are taking place with Barbados and Trinidad and Tobago.In seeking an end to C&W's monopoly, regional governmentssay the company's exclusive licences are hindering economic development,stifling competition and are inconsistent with agreements withthe World Trade Organisation.
Several regional and international companieshave started applying to enter the telecom market in the islandsin the hope of an agreement between the governments and C&W,according to one minister.
The agreement has also brought an end toa contentious legal battle between C&W and a new telecom companyin Dominica over interconnections with another company, MarpinTelecommunications.
"Had the governments and C&W notachieved this major milestone together, I fear our children andour children's children would surely be cheated of their fullparticipation in the information revolution that has gripped theworld," said Keith Mitchell, Prime Minister of Grenada.
Here in the Cayman Islands, it is knownthat the Government is presently in negotiations with Cable andWireless (Cayman Islands) Limited (IC&W), the local franchiseholder of telecommunications, to come to terms in connection withthe reduction of rates, particularly in respect of the internet.
It has been expressed in official circles,that the rates now charged by C&W does put Cayman on a competitivefooting with other countries which are advancing their economiesthrough their development as IT providers.