Two broadcasting companies in Grand Cayman are contemplating legal action against one of their strongest competitors who are about to acquire a fourth radio station.

Hurley's Entertainment and Paramount Media have written to the Information and Communications Technology Authority (ICTA) to protest the proposed purchase of Style 96.5 FM.

dms Broadcasting, headed by businessman Don Seymour, plans to purchase the station once the ICTA has given the application its stamp of approval.

The company currently owns and operates Hot 104.1 FM, Kiss 106.1 FM and X 107.1 FM and like its objectors, are based in the capital, George Town, which is home to some 16 radio stations.  

Hurley's Entertainment, the owners of Z99.9 FM and Rooster 101.9 FM, and Paramount Media, the proprietors of Vibe 98.9 and Spin 94.9 FM, have called on the licensing body to intervene in the matter.

"The authority is fully aware that a significant number of licensees and customers in the Cayman Islands have complained about the blanketing interference caused by the current operation of the dms Broadcasting facilities in George Town," they wrote to the ICTA.

Both companies have hired the law firm Stuarts Walker Hersant Richard Annette who on 9 June objected to Style FM's licence being assigned to dms Broadcasting on four grounds.

On one ground, the lawyers for the objectors stated: "Our clients are particularly concerned that the blanketing interference issues are likely to be exacerbated by the proposed assignment."

The letter to the ICTA, which was made available to the media, stated that granting another licence to the dms Broadcasting would be "wholly unacceptable".

"There is a clear risk that dms Broadcasting may move the Style FM 96.5 FM transmission to its present tower location next to Radio Cayman, which would plainly cause even more blanketing interference," their lawyer said to the ICTA.  

Officials of dms Broadcasting told Cayman Net News they would not comment at this time and would await word from the ICTA on their application to acquire the licence of Style FM.

Attempts to solicit a comment from the ICTA on the matter proved futile as press time.

Hurley's Entertainment is also alleging that the licensing body has placed a moratorium on new licences since it had not received a response to its September 2005 application.

"Over nine months have elapsed since submitting the application, but the authority has still not given any indication as to when our client can expect its application processed," the lawyers wrote in the same letter.

And Hurley's Entertainment is crying foul over dms Broadcasting's planned format for programming on Style FM.

According to the objector, the latter would be using the same "classic rock" format it proposed in its application nine months ago.

"This would plainly be improper and any decision permitting such a change properly reviewable by the court," Hurley's lawyers said.

The objectors have called on the ICTA to take no further steps on the licence assignment until a "resolution of the breach of licence issues".

"Our clients' rights are reserved in their entirety including applying to court forthwith for appropriate relief," the lawyers said in the two-page letter to the licensing body.

Meanwhile, six companies have launched an appeal to the ICTA to end their "frustration with frequency interference which has seriously impacted upon the quality of the products and services".

Blue Sky Wireless, Hurley's Entertainment Corporation, Infinity Broadband Ltd, Paramount Media Services, TeleCayman Ltd and United Telecommunications Ltd have jointly written to the ICTA.

They accused the ICTA of taking a "hands off and relaxed approach to the issue of spectrum interference preferring to have licensees work out issues amongst themselves".

In their letter to the Managing Director of the ICTA David Archbold, the companies complained that the formula prescribed by his body was not working and had in fact cost them dearly.

"This approach by the ICTA has resulted in some of us losing substantial revenue and/or requiring significant additional expenditures," the company said in a three-page letter copied to Minister for Telecommunications Hon Arden McLean.

The 8 June letter did not name the alleged offending parties but its authors demanded that the ICTA "immediately address its statutory responsibilities with regards to spectrum and resolve the interference issues".