Telecommunications Peace Breaks Out In BVI

by Leroy Baker, Lawandtax-News.com, New York

20 March 2007

CCT Global Communications, which currently holds the only mobile phone services licence in the British Virgin Islands, has signed an Interconnection Agreement Memorandum of Understanding (MOU) with monopoly fixed-line provider Cable And Wireless.

There had been a war of words between the companies pending the issue of new 'unitary' licences under the BVI's recently liberalized telecommunications regime. CCT Director Meade Malone had 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 had denied 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.

The new licences were indeed supposed to be issued by the end of January, the moment when C&W's 40-year monopoly licence expired; but the government appears to be unable to make up its mind over how many new licences to issue, so that the BVI's new Telecommunications Regulatory Commission has been forced to give extensions to existing licence holders, including C&W and CCT.

“With the signing of this MOU completed, this paves the way to an open and level playing field in the BVI” explained Vance Lewis. “The remaining obstacle is the issuance of unitary licenses for those operators who will be allowed to provide telecommunications services. We are pleased we have been able to accomplish this without all of the acrimony that has occurred in other markets. As previously announced, we are ready!”

CCT said in February that 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.

Other applicants for licences include BVI Cable TV, Digicel and Virgin Live Media.

Chief Executive Officer of the Telecommunications Regulatory Commission David Iverson said: “The number of new licences to be issued is dependent on the Minister’s policy statement, which has not yet been issued. This policy statement is expected in the near future.”

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