Precisely how much Oceanic, which operates in Jamaica as MiPhone, is owed is not clear.What was confirmed on Friday was that MiPhone had pulled the plug in the face of the dispute.

"We terminated the contract and that's a recent development," Colin Webster, MiPhone's chief operating officer, told Sunday Business.

The matter appears headed for court, but in newspaper advertisements at the weekend, MegaFone, a subsidiary of Carlos Hill's controversial Cash Plus Group, told its customers to look to Oceanic, which operates in Jamaica under the name MiPhone, for recompense.

"Customers with defective phones who also have unexpired subscription are entitled at their option to a replacement phone, or a refund," the Megaphone ad said. "The refund has to be negotiated with MiPhone and accordly dealers are required to take customers' submissions to use as 67 Slipe Road."

While MiPhone has announced the launch of its own service to replace the MegaFone franchise, Webster described the assertion of its former partner as "unfortunate". The implication was that those obligations belong to MegaFone .

Carlos Hill presides over a organisation that has taken large amount of cash from thousands of mostly small investors with promises of returns of more than a 100 per cent a year.

While he has been at loggerheads with regulators over an alleged lack of transparency and his failure to register in accordance with the law covering trading in equities, Hill has announced a flurry of business ventures and ostensible purchase deals.

MegaFone was among the earliest of his forays. Subscribers were initially offered unlimited calls to the UK , the United States and Canada for a flat J$50 a day or $990, excluding tax, per month. These rates were later increased to $65 and $1,150, respectively. Subsequently, the arragnement was adjusted to allow MiPhone call cards to be used on the MegaFone system, a move that addressed MegaFone 's distribution problems but afforded MiPhone additional purchase on the scheme.

But even as the MegaFone system appeared to grow in popularity tensions were clearly emerging behind the scenes. Three months there were rumours of a quarrel over MegaFone 's reported debt at the time both Webster and his chief financial officer Mary E. Thomas declined to comment on the issue.

MegaFone and Cash Plus officials could not be contacted for comment on Friday, but MiPhone's Webster confirmed that it was the same issue that had resurfaced he again refused to give numbers.

"It's the same matter at the end of the day," he said.

With MegaFone pulled from its network, MiPhone moved swiftly to offer customers a MegaFone subscribers attempting to make calls are greeted with an announcement that the service was not longer available.

"However, to assist all customers who have come to rely on this product MiPhone has introduced a new product that offers similar benefits," the announcement says. "For the same $999 you will get 1,003 minutes to the U.S.A., U.K. land line and Canadian numbers."

Although Webster disputed his company's liability to MegaFone's customers, as suggested in that company's advertisement, he said persons who had bought MiPhone cards for use on their MegaFone handsets would receive what they paid for.

He however made clear that they would not be able to renew subscription on the original MegaFone plan.

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