Cable and Wireless has yielded to pressure by giving up the last six years of its monopoly in the Islands, and has signed a new 15-year license agreement under the Telecommunications Ordinance 2004 and the Telecommunications and Frequency Licensing Regulations 2005.

Cable & Wireless put on a brave face, congratulating the government on its liberalized regime, but said it planned to reduce local wireless tariffs by up to 50% and national fixed line rates by up to 60% from 1 March 2006.

Communications Minister, McAllister Hanchell, said that the liberalisation would see more players enter the market and will boost access to communications services.

Under the legislation, there is now a Telecommunications Commission, which says that there must be universal access to basic sustainable telecommunications services at an affordable price to every citizen:

• the telecommunications network must be expanded to reach citizens in all areas of the country;
• every individual must have access to affordable basic telecommunications services at a reasonable distance;
• at the minimum, this will be a telephone with internet access in every home.

Under the Telecommunications Ordinance of 2004, the Commission is responsible for:

• advising the Minister on telecommunications;
• regulating telecommunications in the Islands in accordance with the policy guidelines published in the Gazette from time to time and in accordance with the principle of technological neutrality;
• facilitating, maintaining and promoting effective and sustainable competition in telecommunications;
• setting standards for the quality of telecommunications services to be delivered to the public;
• promoting the interests of consumers and encouraging licensees to operate efficiently, publishing information;
• reports or other documents, carrying out investigations and holding enquiries with respect to any matter in relation to its functions or duties under the Ordinance, and
• giving advice and directions to a licensee with respect to anti-competitive practice or behaviour.