Fair Trading Commission find in favour of Digicel

Digicel has expressed pleasure with the findings issued by the Fair Trading Commission in Barbados last 28th October, 2004 which found that its competitor Cable & Wireless has “abused its monopoly on wholesale international services in Barbados.” {{more}}

Digicel says the findings were the result of a complaint they made to the Commission, which regulates telecommunications services in Barbados, on the 2nd of April 2004.

Digicel says that Cable & Wireless had on 29th of March 2004 announced that they would offer a promotional discount on international calls to their mobile customers. Digicel further states in a release issued October 28th that 17th September, 2004, Cable & Wireless announced another promotional discount on international calls for their fixed line customers. As a result of these promotional discounts, Digicel claims, their competitor was charging Digicel more for international services than they were charging their own retail customers.

According to Digicel, the Commission found that “C&W has abused its dominance in the wholesale international voice telephony market, by engaging in the practice of price squeezing to the harm of it downstream competitors.” Digicel says Cable & Wireless has been informed by the Commission to refund Digicel the difference between what it charged Digicel and the retail rates charged to Cable & Wireless’ customers during the promotional periods.

Kevin White, CEO, Digicel Eastern Caribbean, stated, “Digicel is delighted with today’s findings by the Commission. This sends a strong message to C&W that an abuse of their monopoly on international services will not be tolerated. Although Digicel does not object to C&W’s rate reductions, fair competition requires them to offer discounts that will allow their competitors to compete on a level playing field.”