Barbados Fair Trading Commission Rules in Favor of Digicel on International Telecommunications Rates

The Fair Trading Commission of Barbados officially announced on Friday, October 28, that Cable & Wireless (C&W) has been instructed to refund Digicel the difference between what Cable & Wireless charged the company for wholesale international telecommunications services, and the retail rates Cable & Wireless charged to customers during promotional periods.

The findings are the result of concerns voiced by Digicel, the fastest growing mobile telecommunications operator in the Caribbean, to the Commission on April 2, 2004, in an effort to maintain fair competition among wireless providers in Barbados.

On March 29, 2004, Cable & Wireless announced that it would offer a promotional discount on international calls to its mobile customers. On September 17, 2004, Cable & Wireless announced another promotional discount on international calls for fixed line customers. As a result of these discounts, Cable & Wireless was charging Digicel more for international services than it was charging its retail customers.

Upon completing its investigation, the Fair Trade Commission stated that, "Cable & Wireless has abused its position in the wholesale international voice telephony market, by engaging in the practice of price squeezing to the harm of its downstream competitors." Cable & Wireless has been instructed by the Commission to refund Digicel the difference between what Cable & Wireless 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 the Commission's findings, which sends a strong message to Cable & Wireless that an abuse of its monopoly on international services will not be tolerated. Although Digicel does not object to Cable & Wireless rate reductions, fair competition requires the company to offer discounts that will allow its competitors to compete on a level playing field." White continued to say, "Until such time as competitors can use the international services of other operators in Barbados, consumers will not be able to enjoy the benefits of a competitive telecommunications market."

About Digicel

Since its launch in 2001, Digicel has become the fastest growing mobile telecommunications operator in the Caribbean. In three years Digicel has become renowned for competitive rates, unbeatable coverage, a wide variety of products and services and state-of-the-art handsets.

By offering innovative mobile services and community support, Digicel has become a leading brand in the Caribbean and has placed the region at the cutting edge of mobile communications.

Digicel operates in seven countries including Aruba, Barbados, the Cayman Islands, Grenada, Jamaica, St. Lucia, St. Vincent and the Grenadines. It is the largest GSM mobile operator in the region and plans to extend its footprint into other Caribbean countries.

Digicel is headquartered in Kingston, Jamaica, and has approximately 900 employees. The company is the lead sponsor of Caribbean sports teams including, the West Indies Cricket Team, Special Olympics teams across the Caribbean and is title sponsor of the Digicel Caribbean Football Union Cup, which involves over 30 Caribbean countries and is an important qualifier towards the CONCACAF Gold Cup.

Contact: Maureen Rabbitt Corporate Communications Manager Digicel 1 (876) 361 2852 (Jamaica) Adam Paige Cohn & Wolfe (212) 798-9833 (New York)