Cable and Wireless policiescalled "Draconian" say local businessmen.
(Left) Mr. Timmy Adam GeneralManager, Cable & Wireless and (Right) Mr. William Peguero,CEO, Sounds & Things
In an immediate response to Cable &Wireless' announcement to block the placement of internet relatedoverseas calls, two local businessmen held a press conferenceat the Mariott on Friday, august 4, to announce plans to forcethe company, the exclusive local provider of telephone and Internatservices to renegotiate its 25 year franchise and to and to ceasecertain 'draconian' practices.
The press conference was spearheaded by Mr. William Peguero, ofSounds & Things one of the Island's largest electronics retailers,and Mr. James Knapp of SEGOES, Ltd. an established Internet financialtrading company.
Mr. Peguero stated that the press conference was convened to voicepublic concerns and highlight the negative effects on local consumersregarding practices termed as, "the draconian measures andhigh handed approach of Cable & Wireless, operating as a monopolyprovider of telephone and internet service."
This recent outcry by the public and local businessmen arose fromthe much talked about recent move by Cable and Wireless to blockVoice Over Internet Telephone calls and "other policies costlyto the consumer and restrictive to the development of local businessesand e-commerce." The organisers stated, "we certainlydo not have fair competition in telephone and internet serviceand Cable & Wireless is not giving the people of the CaymanIslands fair pricing and service that gives value for the money."
As a serious measure, they outlined plans to petition the CaymanIslands Government and the Courts to issue an injunction againstCable & Wireless' blockage of the public's access to Net2Phoneand similar systems.
The petition will be circulated to garner public support in thisregard calling for a review of Cable and Wireless "monopolyoperations" in the Cayman Islands. Mr. Peguero and Mr. Knappare also calling for the establishment of an independent Commissionto regulate Cable & Wireless and stated that they along withothers - will be lobbying the Government to set up this commissionto monitor the operations of Cable and Wireless.
The petition is available for signatures at local area supermarketsand Sounds & Things. They are also encouraging members ofthe public to read the petition and familiarise themselves withthe issues and concerns relative to Cable and Wireless and supportthe effort by signing the document. Their aim is to have a minimumof 2,000 signatures by the 1st of September before presentingit to the Governor-in-Council.
Mr. Peguero stressed that this action is nothing personal withany of Cable and Wireless employees, but they are simply speakingout as businessmen and consumers against the policies and pricingschemes of the company. "Cable and Wireless is holding thecountry hostage and is fleecing consumers who have no alternativeto whatever the company chooses to offer," he stated.
They maintained that, "this latest action by Cable and Wirelessis only the latest in an overall policy that chokes consumersthrough lack of competition and an exorbitant rate structure."They continued," as long as Cayman accepts this, then Cable& Wireless will take Cayman for as much as it can get, andbusinesses and residents will continue to suffer," adding,"we are hoping that having stepped forward, the people ofthe Cayman Islands will join us in this action."
The following is theirsubmission to the press:
"The company's action last Friday isa clear case of changing the rules in the middle of the game.Only recently in a television call-in program, a caller askedabout Net2Phone and was told by a top Cable and Wireless representativethat the company has no problems with Net2Phone and that any problemsthat the customer experiences using Net2Phone are related to Net2Phoneand not to any Cable and Wireless action.
"Cable and Wireless' action in blocking Net2Phone is misguided.This is only a temporary situation and Net2Phone is currentlyworking on it. To be effective, Cable and Wireless would haveto stop all related sites. Telephone calls are legally placedover the Internet in other ways, for example, NetMeeting, DialPad, Delta Three, Phone Free and others. Why hasn't Cable andWireless acted against these? Why stop at Net2Phone?
"The lack of an alternative to Cable and Wireless is onereason that it is able to act in this unilateral manner. If Caymanhad another Internet Service Provider Cable and Wireless wouldbe forced to take a different approach, but there is no incentivefor them but profit. They do not have to worry about faster response,better service or lower rates. Cable and Wireless is protectedby its monopoly position.
"Cable and Wireless appears to contradict even its own Termsand Conditions. In reference to section 7.2, which clearly specifiesvoice over the public telecommunications system. In addition onthe Cable and Wireless website, the information under ISDN clearly,states: With an ISDN line from Cable and Wireless, you can transmitinformation including voice, data, images and video within yourorganization and to customers and suppliers," the submissioncontinues.
"It is no secret that for many years consumers have beenprotesting Cable and Wireless rates. The company says it has reducedrates substantially. What it has actually done is to lower ratesin one area and increase them in another - in what is called arebalancing exercise - so that residential customers are now payingmore and businesses pay less," the statement concludes.
"The truth is that no one really benefits," says Mr.Knapp. "Consider that telecom rates here are 8-10 times higherthat the U.S." He pointed out, that a local 128K ISDN dialservice which cost U.S.$39.95 per month in the U.S. is U.S. $345.75here - almost 10 times as much. Consider also that a phone callfrom Miami is U.S. 49 cents. To return that call from Cayman costsU.S. $1.50."
Mr. Knapp continued. "Cable and Wireless is a public company,yet we the public never see any financial data about it's operationsand the returns it makes from the Cayman Islands. This is certainlynot the position of a company that is responsive to its customers."He said that "Cable and Wireless policies and prices arenot conducive to the development and growth of E-Business in theseislands. The truth is no investor will come at the rates and conditionsthat apply here, when there are better alternatives elsewhere.It is interesting to note that Cable and Wireless' own e-commerceoperations are based in Bermuda, not Cayman."
Mr. Peguero confirmed that they have received legal warning fromattorneys representing Cable & Wireless and their attorneys,Broadhurst & DaCosta have responded. He emphasised that heis a law-abiding businessman and citizen and has no desire tobreak any laws. As local businessmen, he indicated, "we didnot anticipate this action because all indications, which we hadreceived up to this point, had been friendly towards the use ofthe product and it certainly is a change in attitude."
Mr. Peguero indicated that as the Cayman Islands are currentlypromoting e-commerce very heavily as a business right now we shouldbe trying to encourage the reduction of prices and foster freecompetition. Mr. Knapp also indicated that the Cayman Islandsare at least 5 years behind Bermuda in terms of telecommunications.Bermuda's market has been deregulated to foster competition andis one of the countries regionally with which Cayman comparescompetitively.
Mr. Knapp indicated that the 2008 Vision Plan for the Cayman Islandsdid include a call for a regulatory commission to be establishedand that was put forward by the public. He stated that the telecommunicationsmarket in Bermuda has been deregulated to the point that Cableand Wireless is now considering the profitability of their continuingto provide service in that country.
He said, "I would like to see other companies in here thatwill break this hold of monopoly which Cable and Wireless hasbeen allowed to maintain over this country. Free competition canonly lower prices for the country and that would be a benefitto all consumers and businesses alike." Mr. Peguero furtherindicated, "We are taking this issue as far as necessaryfor change and we appeal to the public for full support."
Efforts to contact Cable & Wireless for a response to thisdevelopment have not been successful up to press time.