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Messy Start To BVI Telecoms Liberalization
by Leroy Baker, Lawandtax-News.com, New York

06 February 2007

Cable and Wireless was last week granted a one month extension to its BVI licence to operate fixed voice, data network and international services; the company's 40-year monopoly license expired on 31st January.

The BVI has a newly-constituted Telecommunications Regulatory Commission under its Telecommunications Act, but liberalization appears to be going slowly, with a national telecommunications policy yet to be announced. Other applicants for various types of licence include CCT Global Communications, BVI Cable TV, Digicel and Virgin Live Media.

CCT currently operates mobile services, and Director Meade Malone last week accused Cable and Wireless of predatory behaviour, asserting that C & W had attempted to drive CCT into bankruptcy, continued to charge it interconnection rates above its own retail tariffs, and had disrupted CCT's network by testing a wireless communications system over the same frequencies used by CCT.

Cable & Wireless chief executive Vance Lewis says that the government promised it could apply for a mobile licence last year, but that nothing had transpired. It denies behaving unreasonably towards CCT: "All efforts we have undertaken have been done with government approval and within legal and ethical boundaries. Government owns the frequency, and all of this was accomplished with the understanding that a license was to be received by the end of January 2007," Lewis said.

CCT said last week it had formed a partnership with EOCG group, a regional mobile firm with operations in Bonaire, Curacao, and Aruba, which would allow it to offer cheaper international roaming, plus Direct TV service.

Cable and Wireless has recently reported rapidly increasing broadband customer numbers and revenues in the Caribbean.

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