This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6911511.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Caribbean phone fight nears court | Caribbean phone fight nears court |
(10 minutes later) | |
Telecoms group Cable & Wireless (C&W) has dismissed claims it illegally prevented competition in the Caribbean. | Telecoms group Cable & Wireless (C&W) has dismissed claims it illegally prevented competition in the Caribbean. |
C&W is facing a multi-million dollar damages lawsuit from Caribbean rival Digicel at the High Court in London. | C&W is facing a multi-million dollar damages lawsuit from Caribbean rival Digicel at the High Court in London. |
Digicel says it has leaked papers showing C&W implemented a "well thought-out campaign" to stop competition in some Caribbean markets. | Digicel says it has leaked papers showing C&W implemented a "well thought-out campaign" to stop competition in some Caribbean markets. |
But C&W has dismissed Digicel's claims as without foundation, describing them as no more than a "spoiling tactic". | But C&W has dismissed Digicel's claims as without foundation, describing them as no more than a "spoiling tactic". |
It said it would vigorously defend the case. | It said it would vigorously defend the case. |
'Delaying tactics' | 'Delaying tactics' |
Digicel chairman Denis O'Brien said he had been sent an internal report from C&W that set out a detailed plan showing how the firm could use "delaying tactics" to illegally prevent competitors from setting up business in the Caribbean. | Digicel chairman Denis O'Brien said he had been sent an internal report from C&W that set out a detailed plan showing how the firm could use "delaying tactics" to illegally prevent competitors from setting up business in the Caribbean. |
In our view, that is totally illegal Denis O'Brien, Digicel chairman Caribbean phone wars hit Trinidad | |
"When you go into a market and set up a mobile operator in competition to C&W what they do is delay and delay and delay the interconnection of the new operator to their network," he told the BBC. | "When you go into a market and set up a mobile operator in competition to C&W what they do is delay and delay and delay the interconnection of the new operator to their network," he told the BBC. |
"In other words, Digicel mobile needs to talk to a C&W mobile and that is subject to an agreement - and it is a very long and detailed agreement - so instead of this taking maybe a month or six weeks to negotiate it can go on for in some cases nearly six months." | "In other words, Digicel mobile needs to talk to a C&W mobile and that is subject to an agreement - and it is a very long and detailed agreement - so instead of this taking maybe a month or six weeks to negotiate it can go on for in some cases nearly six months." |
He alleged that in one market - St Lucia - C&W blocked calls not only to Digicel, but also international calls. | He alleged that in one market - St Lucia - C&W blocked calls not only to Digicel, but also international calls. |
"In our view, that is totally illegal and if you look at the legislation of the countries, it is in breach of the legislation," he added. | "In our view, that is totally illegal and if you look at the legislation of the countries, it is in breach of the legislation," he added. |
Tougher competition | Tougher competition |
C&W dominated the mobile phone business across the Caribbean for several years, but several governments in the region have issued new licences to its competitors. | C&W dominated the mobile phone business across the Caribbean for several years, but several governments in the region have issued new licences to its competitors. |
Set up in 2001, Digicel subsequently won many of the licences and now has 4.7 million customers in 22 markets. | Set up in 2001, Digicel subsequently won many of the licences and now has 4.7 million customers in 22 markets. |
However, it claims it was forced to delay operations in many markets by up to six months - partly because of delays in securing interconnect deals with C&W. | However, it claims it was forced to delay operations in many markets by up to six months - partly because of delays in securing interconnect deals with C&W. |
As a result it has launched a claim for damages, for what reports suggest could be as much as $300m, against C&W. | As a result it has launched a claim for damages, for what reports suggest could be as much as $300m, against C&W. |
The case is not expected to reach the courts until 2008. | The case is not expected to reach the courts until 2008. |
Previous version
1
Next version