"We are requesting the minister and the Office of Utilities Regulations to split up C&WJ as was done with the regional Bell Operating Companies [in the United States] from day one and which the United Kingdom government and regulators are doing to British Telecoms," charged vice-president of JCTA, Steve Twomey, at a recent press conference.

The group has written to Prime Minister P.J. Patterson for his intervention, claiming that the Minister of Commerce and Technology, Phillip Paulwell and the Office of Utilities Regulations (OUR), have failed to provide a level playing field for competition in the telecommunications industry.  "We believe it is time for Jamaica to take the next step, and leadership in the region, by requiring Cable and Wireless to split up into retail-wholesale and regulated and unregulated business.  This is the only way there will be clear transparency within the market that will allow competition to flourish," it said in its letter.

However, yesterday, Cable and Wireless' vice-president for corporate communications, Errol K. Miller, told Wednesday Business that "a divided operation is not necessary in the face of stiff regulations as the relevant competitive safeguards are in place and the [OUR] Office is seeking to further strengthen its regulation of the company's operations through its accounting separation and competitive safeguards consultations."

Mr. Miller noted that C&WJ was under the microscope of the OUR and "the rates submitted [to OUR] by C&WJ must be justified by the relevant cost data.  The company is the most regulated telecommunications provider and is constantly under the watchful eyes of the regulator, the competition authority, its competitors and the public."

He also added that "C&WJ has taken the initiative to locate the wholesale carrier services division in a separate building from its retail business, to protect the integrity of its operations."

At the press conference, Mr. Twomey, in a broadside attack - in the presence of C&WJ officials who sat impassively throughout the press conference - charged that the deregulation of the telecommunications industry has been a failure.  However, the C&WJ executive disagreed.

INHERENT FAILINGS

"The Government's telecommunications policy has many inherent failings, however, it would be unfair to characterise it as a failure.  There is vigorous and healthy competition in the mobile and Internet market, which has led to significant cost and quality of service benefits to the Jamaican consumer.

Unfortunately, the licensing regime has led to the current situation in the international settlement market, where the objective of promoting sustainable competition and investment in infrastructure has been derailed," Mr. Miller said.

Mr. Twomey characterised the system as one in which the smaller players are snubbed while the Government panders to the big three in the industry: Oceanic Digital Jamaica (ODJ), C&WJ and Digicel.  "The Ministry [of industry and commerce] basically ignores everyone but Digicel, C&WJ and ODJ.  It holds meetings with the big three to get their input on multiple occasions and never invites the rest of the industry," said Mr. Twomey.

He lambasted the OUR, claiming the regulatory agency was "unable or unwilling to regulate" and "will not push C&WJ or Digicel."  To these charges, Mr. Miller replied that "C&WJ ..., as a former monopoly in a newly-liberalised industry ..., is the easy target for spurious claims of anti-competitive behaviour."

Mr. Twomey was highly critical of the Fair Trading Commission, claiming that it is "unable to hold hearings and rule on matters [such as] competitive issues."

Up to press time yesterday Wednesday Business was unable to get comments from the OUR or the Fair Trading Commission.

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