KINGSTON, Jamaica–Digicel has asked the Eastern Caribbean Telecommunications Regulatory Authority (Ectel) to publicly clarify and confirm the status of the regulatory approvals process they have undertaken in conjunction with the National Telecommunications Regulatory Commissions (NTRCs) in relation to the proposed merger between Cable and Wireless Communications (CWC) and Columbus Communications Inc as it relates to Grenada, St Lucia and St Vincent and the Grenadines.
This follows the decisions by the Barbados Fair Trading Commission (FTC) and the Telecommunications Authority of T&T (TATT) to approve the CWC/Columbus merger.Digicel Group CEO, Colm Delves, said; "We very much welcomed the initial intervention by Ectel and its expression of support for a rigorous regulatory examination of the proposed merger.
Digicel was taken aback by the dismissive stated position of CWC/Columbus that the governments of the Ectel member states and the established regulatory authorities in those countries were essentially powerless and had no right to oversee the proposed merger. "We are now respectfully calling upon Ectel to clarify the process for regulatory approvals for the proposed merger in the OECS member states."
The regional telecommunications service provider noted that soon after the proposed merger was announced last November, Ectel had expressed concern that the proposed transaction could "potentially result in a negative impact on competition" by "reducing choice for consumers of both services and service providers."Digicel recalled that a meeting of the Ectel Council of Ministers was convened in St Lucia on December 4, to address the challenges posed by the proposed merger and concluded that due process must be followed with the proposed merger.
The company said: "Both the Barbados FTC and TATT confirmed unequivocally that the proposed merger would involve anti-competitive effects in the fixed voice (landline) telephony and broadband markets whilst TATT also confirmed that the proposed merger would also have anti-competitive effects in the Pay TV and wider wholesale telecommunications markets in Trinidad and Tobago.
"In their respective decisions, both TATT and the Barbados FTC made their mergers approvals strictly conditional on significant asset divestments in Barbados and share divestments in Trinidad. The proposed merger between Columbus and CWC also involves the creation of a monopoly and strong potential anti-competitive effects in the markets for landline, broadband and Cable TV in Grenada, St Lucia and St Vincent and the Grenadines."
Delves said: "Digicel has previously stated that ECTEL and the NTRCs in each member state have an absolute right, morally as well as legally, to subject the proposed merger to a rigorous examination and approvals process in collaboration with their respective governments and relevant ministerial bodies before it is allowed to proceed.
"We are seeking clarification from Ectel as to the present position in this regard. We believe that the consumers, as well as the industry as a whole, in St Lucia, Grenada and St Vincent and the Grenadines would certainly welcome such clarification and we look forward to receiving such prompt confirmation from Ectel."