Minister of InformationTechnology
"If introduction ofcompetition (to C&W) is the best answer, we must get on withit."
Hon. LinfordPierson, OBE, JP
In what could be described as a major steptowards changing the Cayman Islands' communications landscape,Government has signalled to Cable and Wireless (C&W) thatit is no longer business as usual and wants that monopoly companyto submit a package of revised charges and services or face liberalisation.Ministerof Information Technology, the Hon. Linford Pierson, JP, OBE,told members and guests at a recent Chamber of Commerce luncheon,there is a need to reposition businesses so that maximum advantagecan be taken of current technology and the goal is to obtain aconsistent delivery of state-of-the-art telecommunications atcompetitive prices.
Towards this end the Minister announcedlast week that government will engage C&W in a process ofconsultation that is intended to result in a beneficial telecommunicationsservice for Cayman Business.
"I therefore am requesting Cable andWireless to submit their best possible proposals for revised pricestructure, range of services, and quality of service as soon aspossible, and preferably by the end of August at the latest"stated Mr. Pierson.
He said that should a government advisorycommittee not be happy with the C&W submission and hence theadministration holds the opinion that retaining a monopoly telecommunicationsservice is not in the best interest of the country, talks on wouldbe initiated to to introduce competition to the local market.
The Minister noted in his presentation thatCayman may be behind some other jurisdictions in revamping itstelecommunications structure but pointed out that an advantagein this regard is that lessons can be learnt from the mistakesof others. He however said that the time is now to get on board.
"If the introduction of competitionis the best answer, we must get on with it. What we cannot dois drift along without any decision being made whilst other jurisdictionsreap the benefits of our uncompetitive rates" he suggested.
He quoted a number of statements emanatingfrom the two of the company's Chief Executive Officers, includingthe current one Mr Errald Miller, along with a press release guaranteeingC&W's willingness to enter liberalisation talks.
"I will expect them to fulfil thesecommitments to the general public and their shareholders by constructivelyentering into good faith discussion a that will rapidly lead tothe renegotiation their present contract and the liberalisationof telecommunications in the Cayman Islands," he said.
Minister Pierson - whose presentation atthe time indicated that he was yet to speak with C&W and hadopted to release the information first to the country's businessleaders - outlined a possible timetable for liberalisation ofthe communications industry beginning from the submission of anew price and services structure by the end of August, throughphased liberalisation beginning August 2002 and completion byJuly 2004.
The Minister's disclosure comes againsta backdrop of Caribbean-wide moves towards freeing-up the communicationsindustry to better utilise available technology for economic improvement.
C&W holds a monopoly in almost all English-speakingCaribbean islands. In Trinidad and Tobago it has a 49 per centshare in the telecommunication company, TSTT.
It has recently struck deals for dismantlingof the monopoly and inviting of competition in six member-countriesof the Organisation of Eastern Caribbean States, Jamaica, Barbadosand Trinidad and Tobago.
At a C&W media seminar which ended justover one week ago in Jamaica, C&W Vice-President Legal andPublic Policy, Ms Lisa Agard, said: "I think we have demonstratedin our negotiations with Jamaica, the OECS and Barbados that wecan rub with any reasonable government and while we expect tobe fighting lots of legal battles throughout the Caribbean, wedon't expect the British Overseas Territories to be SubstantiallyDifficult".
She however added, "One of the particularchallenges in the British Overseas Territories is the size andgeography. It's going to be a challenge to work with those governmentsof the small territories that want liberalisation to come up withthe right model that ensures that everybody continues to get accessto basic telecommunications services at affordable prices".
Reflecting on his timetable for liberalisation,if the administration should determine that is the route to goin the best interest of the country, Minister Pierson said thatthe only possible impediment would be the level of cooperationbetween negotiating parties.
"Clearly the actual rate of progresswould depend on many factors, including how willing Cable andWireless are to live up to their commitment to cooperate withgovernments as they manage the introduction of competition,"he said.