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Home arrow News arrow News Archives arrow January 2006 arrow Digicel clears final hurdle in Trinidad


Digicel clears final hurdle in Trinidad PDF Print E-mail
Written by jamaicaobserver.com   
Sunday, 08 January 2006
Digicel has signed the final paperwork needed for the Jamaica-based telecom company to begin offering services in Trinidad.  Digicel, local telecom provider Laqtel and the mostly government-owned Telecommunications Services of Trinidad and Tobago signed concessions and associated licences on Dec. 30.

"The concessions will allow them to provide mobile and international telecommunications services for a period of ten years," John Prince, head of Trinidad's telecoms authority, told The Associated Press on Saturday.  In June, Digicel and Laqtel won bids in an online auction to provide cellular service, beating out offers from NatTel and Telkom Caribe.

Digicel won a five block licence with a bid of US$16.8 million (euro14.3 million), while Laqtel won a 3 block licence with a bid of US$9.3 million (euro7.9 million).

In late October 2005, Digicel hit a major snag as it attempted to enter the Trinidadian mobile telephone market.  Digicel disputed a deal with state-owned TSTT to link their mobile telephone networks and a US$1.2 million (euro 1 million) final payment.  The dispute came a week after Digicel was awarded a licence to provide mobile telephone service to Trinidad.

TSTT told Digicel they must pay US$1.2 million (euro 1 million) for the technology that allows customers to call from one phone network to another.

TSTT has denied stalling the process and said interconnectivity could not happen before March as it would take four months to get all of the equipment.  Since, a February target was put forward.  The fast-growing Digicel has already acquired Cingular's operations in Anguilla, Antigua, Bermuda, Dominica, and St. Kitts as part of its Caribbean expansion.

Until the deal, the Telecommunications Services of Trinidad and Tobago had been the only provider of telecoms in the twin-island nation.  Minority shares in the company were held by Britain's Cable & Wireless PLC - Digicel's main competitor in the region.

http://www.jamaicaobserver.com/magazines/Business/html/20060107T020000-0500_96195_OBS_DIGICEL_CLEARS_FINAL_HURDLE_IN_TRINIDAD__.asp

 
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