"At this time the mobile termination rates are not finalised," said Elaine Leung, acting managing director at the Information & Communications Technology Authority in Grand Cayman. "The companies filed the dispute in mid-February."

C&W has been the long-standing and sole telephone services provider in the tiny island of less than 40,000 residents. The market has now been opened up in line with the wave of liberalisation through the Caribbean.

Last week the Irish company, Digicel officially launched its cellular service in Cayman, having invested US$20 million to lay out its infrastructure there. This company plans to spend another US$10 million, which will eventually allow it to add land-line service as an option for Caymanians.

AT&T spent US$15 million to set up its service, which was also formally launched last week.

C&W has not disclosed the size of its customer base in the island.

But for a seamless service to be provided, the three competitors must establish a common interconnection cost - which they have been unable to do so far.

They have however "agreed to an interim rate between themselves so that they can operate", according to Leung. "When a decision is made the companies will settle the difference," she added.

The decision to establish a temporary rate will allow the competitors to avoid the costly court battles that have ensued in other jurisdictions like St Vincent & the Grenadines and in Jamaica.

Leung suggested that both C&W and Digicel, the latter which now operates in seven Caribbean territories, had learnt from past experience.

"I think it is in largely the result of the past experiences that the industry players gained from setting up in (other Caribbean countries)," she said.

http://www.jamaicaobserver.com/magazines/Business/html/20040309T220000-0500_56895_OBS_CELL_COMPETITORS_CAN_T_AGREE_ON_RATES_IN_CAYMAN.asp