It's a case of peaks
and troughs for telecommunications giant Cable & Wireless
(C&W). Whilst the company enjoys a monopoly in the Caribbean
- only last week it was reported that C&W made more than US$30m
profit from its British Virgin Islands operations during last
year - it also learned last week that its monopoly in Barbados
will end in 2002.
Speaking to the House
of Assembly, Barbados Prime Minister Owen Arthur said that the
prevailing telecommunications monopoly structure was 'incapable
of adequately satisfying the demand for increased delivery of
telecommunications services.' The government has thus agreed in
principle on a new telecommunications reform policy, a green paper
on which will shortly be presented to Parliament. Under the new
telecommunications policy, the monopoly agreement with C&W
will come to an end in 2002 instead of 2011, with full liberalisation
to be phased in from December 1 this year.
The timetable is
as follows:
- Under Phase 1 (December
1 to March 31 2001), the government will introduce competition
into the cellular telephone market through the granting of new
licenses.
- Under Phase 2 (April
1 to December 31 2001), the government will introduce competition
in the provision of domestic telephone services through the granting
of new licenses.
- Under Phase 3 (January
1 2002 to December 31 2002), the government will grant additional
licenses for the provision of international telecommunications
services.
Mr Arthur said that
a new regulatory framework would form a "critical part"
of the telecommunications policy, the aim of which would be to
protect consumers from unfair pricing and practices and to encourage
investment by permitting investors to earn fair returns to ensure
quality of service.
What is somewhat
surprising is that C&W has agreed to give up its monopoly
with no demand for compensation. Trevor Clarke, CEO of C&W
Bartel and C&W's regional director for Barbados and the Eastern
Caribbean, said that there would be no claim for financial recompense.
Instead, he said, 'we are getting the opportunity to remain in
Barbados and continue to serve our customers for a fair and reasonable
return on our investment.'
In an interview with
Caribbean newspaper the Broad Street Journal, Mr Clarke stated:
'We recognise that the world is changing, and that it is better
to be a willing partner in that change with an eye to making a
better future for our company than to try to resist, even if we
felt we could win (in the law courts).' He said that C&W was
willing to negotiate with any new player seeking to provide telecommunications
services in Barbados, whether for cellular, domestic or overseas
services.
OFFSHORE-E-COM.COM
