BASSETERRE, St. Kitts – NEGOTIATIONS between the recently merged telecommunications giants Cable and Wireless Communication (CWC) and Columbus Communication and the Eastern Caribbean Telecommunications Authority (ECTEL) have ended in a stalemate.
According to ECTEL, following the proposed merger between the two companies back in 2014, the entity, along with the National Telecommunications Regulatory Commissions (NTRCs), were working assiduously to reach an agreement over the merger because there was no existing law that gives them “sufficient legal standing to stop or impose remedies on companies partaking in (such) mergers and acquisitions in the telecommunications sector”.
Since the US$1.5B merger between Cable and Wireless - parent company of LIME and FLOW - and Columbus Communications, controversy erupted when the company wanted to increase prices in several markets but they did not gain the approval of ECTEL Board Members.
During a meeting held in St. Kitts in 2015, the Board had raised several issues pertaining to the merger, including questioning if consumers were receiving a quality product for the price, and even pointing to the fall in prices for broadband internet in developed countries.
According to a statement from the Eastern Caribbean Telecommunication Authority, price increases and quality product provided to customers were among several issues be addressed in the proposed agreement.
“The agreement sought to address issues such as, but not limited to, the minimum speed and price for entry level Broadband packages, maintaining an open internet, sharing of telecommunications infrastructure for existing and new entrants to provide new services, and protection provisions to ensure customers are not disadvantaged by new services and pricing to be implemented following the merger.”
ECTEL will continue to fulfil its mandate of promoting open entry, market liberalisation and competition in the telecommunications sector of the Contracting States with the absence of the Electronic Communication Bill in those countries states, the body said in their statement.
ECTEL’s statement to the media points out that they are currently conducting public consultations on a suite of new regulations, including access to network infrastructure, retail pricing and consumer protection, which are in conjunction with the proposed Electronic Communications Bill, to further strengthen the regulatory environment to promote fair competition and safeguard consumer rights.
“As we seek to maintain a competitive environment in all ECTEL Member States, the public is hereby requested to report to the NTRC in their respective jurisdictions, any actions in the telecommunications market that infringes their rights as consumers or degrade their existing service.”
