BARBADOS' No. 3 PROVIDER of cellular phone services, Cingular Wireless, formerly AT&T Wireless, is apparently getting out of the regional market.

Well-placed sources confirmed yesterday that Cingular Wireless had informed local shareholders in Cellular Communications Barbados, the company holding the licences under which it operates here, that it was exploring all "strategic options" in relation to its entire regional business.

DAILY NATION investigations revealed that Cingular first hinted at its intention at a board meeting of Cellular Communications
Barbados in March.

According to the sources, Cingular had since invited about half-dozen entities, some foreign, to bid for its business, including one of its biggest competitors in the Caribbean, Digicel, which was now said to be in lead position to take over the business.

Digicel, in response to the reports, yesterday issued a statement from chief executive officer for the Eastern Caribbean, Kevin White.

"As part of our aggressive growth strategy, we are considering all opportunities . . . . We are focussed on developing a seamless . . . network across the entire region," it stated.

"Whenever a licence bid, or an acquisition, becomes available, Digicel will be there to review the relevant opportunity.

"However, it is the policy of Digicel not to comment on these opportunities for reasons of confidentiality and competition."

Chief executive officer of Cable & Wireless (C&W) Barbados, Donald Austin, said while he too had heard the rumours, as far as he was aware C&W had not been invited to be part of any bidding process.

One local businessman with interest in Cingular's Barbados operations, and who asked not to be identified, said: "All I can say is that the people [Cingular] have indicated their intention to divest themselves of this area of their business."

When asked about the reports, all the DAILY NATION could get from Adrian Elcock, who in the past was the spokesman for the local investors, was: "We, the independent shareholders, have been hearing the reports, but we can't tell you exactly what is going on."

Industry sources explained, however, that while Cingular might be exploring all its options, any move to sell its 65 per cent shares in Cellular Communications Barbados to any provider already operating in Barbados would trigger intervention by the Fair Trading Commission (FTC).

That's because, the source said, under the Fair Competition Act 2002, a merger or acquisition that allowed any entity to control not less than
40 per cent of any market would require FTC approval and the regulator must respond within three months of an application.

Before it does so, however, the FTC must consider the structure of the market, the degree of control to be exercised by the enterprises involved, especially their economic and financial power, the availability of alternatives to the services, the likely effect on consumers and the economy, and the actual or potential competition from other enterprises and the likelihood that competition would suffer.

If the merger is likely to result in unfair competition, the FTC may order the enterprises to divest interests or part of their combined business if it is satisfied the divestment would make the merger less likely to lessen competition or to adversely affect the interests of consumers or the economy.

The source said too, that since there was no guarantee that independent shareholders such as Clico would want to sell, the company that eventually bought Cingular's regional portfolio, which stretches from the Dominican Republic to Curacao, could end up as just majority shareholder in the Barbados business.