C&W: No Govt. Response
As public attention continuesto be focused on its operations, Cable and Wireless (C & W),the monopoly provider of Internet and telephony service in theCayman Islands, has confirmed that the company's proposal to governmentfor a rate "rebalancing" has not been approved.
C&W's General Manager, Mr. Timothy Adam,made this disclosure, in response to questions posed by CaymanNet News, about the proposed new rate schedule and rebalancingof rates between residential and commercial customers.
"We have made several proposals, beginning as early as September1995, and followed up at various stages with meetings and presentationsto the Ministry of Communications, Executive Council, and BackbenchMLAs," Mr. Adam said.
The proposals were amended, he noted, "to accommodate thevarious concerns and questions Government raised." The Company'slatest proposal was presented as recent as April 2000.
That submission, Mr. Adam said, included the following statements:"...we would like to again stress the importance Cable &Wireless places on the need to rebalance our prices, and the needfor your timely approval...we continue to voluntarily reduce manyof our product prices, but we consider (this price restructuring)is vital for the Cayman Islands as a whole. This price restructuringis urgently needed to encourage continued growth of the financialindustry and the tourism industry, and it is essential for thesuccessful introduction of e-business."
The C & W proposal, it was disclosed, was expected to resultin a reduction of rates to many residential subscribers whileothers would see no change at all. By extension, such reductionswould have "a negative impact" on C & W's revenues,and "hence upon the licence fees we pay to Government,"Mr. Adam stated.
According to Mr. Adam, the Government's response, dated 2nd Juneand received by the Company on 6th June, 2000 stated that "C&W'slatest re-balancing proposal was submitted to Executive Council.The Ministry had then been directed by the Governor in Councilto advise that 'approval should not be given to Cable & Wireless'new rate re-balancing proposal'."
"We have asked Government to give us reasons for the rejectionof our proposal. To date, they have given us no reason,"he stated, and "has not indicated to us that the rejectionwas due to a reduction in their royalty fees."
Efforts to obtain a comment from the Minister of Communications,Hon. John McLean were unsuccessful up to press time, as he wassaid to be out of office. Hon. Anthony Eden, who is holding thebrief for Mr. McLean's portfolio of Communications, was also unavailablefor comment.
However, Acting Permanent Secretary in the Ministry, Mr. Tim Hubbell,confirmed to Cayman Net News that "Executive Council didnot approve the C & W rate re-balancing proposal."
Meantime, public pressure continues to mount against what is generallyregarded as exorbitant rates for telephone and Internet services,and C&W's operations as a monopoly especially in light ofthe Company's blockage of Net2Phone and other voice over Internettelephone access last month.
A petition now being circulated -- to be presented to the Governor-- initiated by businessmen William Peguero, Chief Executive Officerof Sounds and Things, and James Knapps, President of the Internettrading company, SEGOES, an Internet-based securities tradingfirm, calls for a "review of the monopoly agreement grantedto Cable & Wireless, and the extent to which they have broadenedits intended meaning ... and name an independent commission toconduct such review."
In the several weeks of the public debate, there has been no officialgovernment response.
It is known, however, that Bodden Town MLA, Mr. Roy Bodden andMr. Kurt Tibbetts, the representative for George Town, have recentlycalled for the setting up of a Public Utilities Board.
It is not the first time that such a call has been made. Whethersuch a body will be constituted and what powers it will have toregulate utility operations such as Cable and Wireless remainsto be seen.
In other territories, such as Jamaica, where government has negotiateda review of and a gradual end to C & W's monopoly, utilityregulatory bodies play a significant role in reviewing applicationsfor rate increases and in monitoring the operations of these entities.
It may fall to the new government to be installed after 8th NovemberElection, to determine a remedy for the widespread discontent.