Digicel Takes BVI To Court Over Telecom Licence Debacle

by Amanda Banks, Tax-News.com, London

14 May 2007

Digicel Group has confirmed that it has obtained leave from the Courts of the British Virgin Islands (BVI) to file an application for Judicial Review, and has also obtained an Interim Injunction relating to the Telecommunications Regulatory Commission’s (TRC) failure to deal with Digicel’s application for a mobile license.

Digicel maintains that its application to operate a GSM license in the British Virgin Islands (BVI) has not been addressed in accordance with the Telecommunications Act, which stipulates that each application must be considered on an objective, transparent and non-discriminatory basis.

After some months of hesitation, the British Virgin Islands Government announced last month a telecommunications liberalisation policy which will see the three existing operators competing in all sectors of the market for the next three years.

New licences were supposed to be issued by the end of January, the moment when Cable & Wireless's 40-year monopoly licence expired; but the government appeared to be unable to make up its mind over how many new licences to issue, so that the BVI's new Telecommunications Regulatory Commission was forced to give a series on monthly extensions to existing licence holders, including fixed-line operator C&W, mobile operator CCT Global Communications and BVI Cable TV.

Minister for Communications and Works, Elmore Stoutt said that the objective of the liberalisation policy is to create the conditions for a fully effective and successful telecoms sector in the BVI. “Government promised the people of the BVI that it would liberalise the telecommunications industry. This policy therefore sets the process in motion and as a result, the public can look forward to better services and prices,” he stated.

However, the Government has invited only the three current licensed public suppliers to apply through the Telecommunications Regulatory Commission for licences to operate across all three sectors: fixed line, mobile and cable. Applications were due by close of business on May 4, 2007. This meant that other applicants, including Digicel and Virgin Live Media, were excluded from the process.

According to Digicel Group Regulatory & Legal Director, Jan Tjernell: “Digicel has an excellent track record of delivering significant investment and job creation, producing better value of services and setting new standards in network quality and customer care. We are also a highly active and responsible member of our communities. Furthermore, Digicel has been a driving force of mobile liberalization across the entire Caribbean region, bringing major benefits to its customers."

“Digicel has always been interested in entering the BVI mobile market and still remains interested. We are seeking an objective, transparent and non-discriminatory process which will be to the benefit to everyone in the BVI,” he continued.

Citing independent international studies, Digicel said that the BVI can support up to four licensed operators offering services in the telecommunications sector.

Digicel had planned an initial US$10 million investment into the BVI telecoms market and claimed that its services would provide the population with 100% network coverage.

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