Cable & Wireless told to come clean on operations by Govt. watchdog
Government telecommunication's watchdog won't consider applications by Cable & Wireless' to reduce long-distance rates until the company makes public information about its operations in Bermuda.
A logjam has developed with the company refusing to make the information public, and the Telecommunications Commission refusing to consider the applications for rate reductions on a range of services.
The dispute is another in a series of verbal and legal skirmishes the company is having with Government over the introduction of competition in Bermuda's telecommunication sector.
On Wednesday Cable & Wireless launched a media campaign to try and win the public over to its side of its battle with Government. The company is claiming a reported $100 million in monetary damages for loss of its monopoly, and it wants to be allowed to lower rates so it can compete with TeleBermuda.
Yesterday the Telecommunications Commission entered the verbal fray with a public notice outlining why it won't consider the company's applications.
The Commission was responding to a claim by Cable & Wireless that Government has refused to allow the company to "compete on a level playing field with the new entrant, by failing to respond to CW's numerous applications to introduce reduced rates and new services which would benefit the Bermuda user.'' Cable & Wireless has made eight applications for reductions since rival TeleBermuda International began operations last May, breaking the company's monopoly in Bermuda. TeleBermuda offers long-distance rates 15 percent below Cable & Wireless' and has so far taken 25 percent of the market away.
The Commission's public notice stated Cable & Wireless submitted "cost-related'' information on January 6 as required in connection with the applications. The company stated it wanted the information designated "confidential''.
The Telecommunications Act requires a company to justify claims of confidentiality and provide an abridged version of the information which may be made public. The company has never made public its revenues and profits from its Bermuda operation.
On January 29 the company rejected the Commission's request for an abridged version of the information on the grounds it was "confidential and commercially sensitive''.
Commission chairman Robert Stewart yesterday stated in the release that the Government body still required the abridged version.
"It is neither onerous nor unreasonable, and serves to balance the public interest in open regulation and the private interests of the carrier, in a fair and reasonable manner,'' he said. "...Accordingly, the Commission considers that unless and until such an abridged version is filed, it will be unable to proceed further with consideration of any of the above-noted applications.'' Cable & Wireless manager of marketing and corporate affairs Edgar Dill said he had no comment to make on how the dispute could be resolved.
Under Government's policy allowing competition in the telecommunications sector Cable & Wireless has been specified as dominant carrier in the market.
The specification means the company must submit any proposal to lower its prices to the Telecommunications Commission.
Government intended the specification so as to protect new entrants against incumbents such as Cable & Wireless from engaging in predatory pricing to undercut the competition and possibly drive them out of business.
