Digicel responds to statements made by Cable and Wireless

By Digicel

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PRESS RELEASE – Digicel today called on all regulatory bodies throughout the Caribbean to see through the smokescreen put up by Cable & Wireless/Columbus and subject the proposed transaction to the fullest regulatory scrutiny.

Responding to Cable & Wireless’s recent comments in the media, Digicel can confirm that it looked at Columbus Communications several months ago and that it was Digicel’s assessment that the value of Columbus Communications was no more than US$2 billion.

The assertion by UK-listed Cable & Wireless that Digicel is suffering from “sour grapes” couldn’t be further from the truth as the reality is Digicel was not prepared to over-pay for the business – unlike Cable & Wireless.

With the proposed combined entity having a near stranglehold on the fixed line, broadband and cable TV markets across the region, Digicel is cautioning that this monopolistic position will translate to higher prices for consumers, a slower pace of investment and innovation, job losses and ultimately reduced economic stimulation for the Caribbean – not least because consumers will be looked on to pay up for the massive premium that was paid for the business.

Digicel Group CEO, Colm Delves, said; “Any discussion of whether or not Digicel was interested in buying Columbus is a smokescreen put up by Cable & Wireless as it tries to railroad through a very expensive transaction that will put enormous pressure on its balance sheet.

“While Digicel did take a look at Columbus, the simple fact is that Cable & Wireless paid some US$1 billion more for Columbus Communications than in our view it is actually worth – a fact that should be of grave concern to its shareholders and the public alike.”

“There is a real probability that customers will ultimately have to pay the price for the exorbitant price that was agreed. Cable & Wireless has said that it can’t “talk about pricing and plans until the deals are done” and that statement alone should set alarm bells ringing.”

He continues; “It’s vital that the good of consumers is top of mind with regulators and Governments. Digicel has been at the forefront of competition in the communications industry and that competition is key to a vibrant market and to economic development – we cannot risk jeopardising all that has been achieved to date. The proposed transaction must be examined properly and in the fullness of time by all of the relevant agencies to ensure that consumers’ interests are protected and promoted.”

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13 comments

  1. The key is and has always been ; "regulatory bodies (who are not in the pockets of big buisness ) who's job it is to go through certain buisness deals to ensure the consumers are not shaft , don't forget publicly trader companies will always be about the bottom line and divinends paid to their share. Holders !" most CEO's are employees answereable to a board of directors . We don't factor .. We need to call on our law markers ( parliament / legislative body the elected prickly headed politicians ) to step up and protect us from any monopoly .. Period . Haven't we learned anything from WTO , IMF world bank etc .. Why do you think USA have SEC over seeing major stock trade ( not saying they are always successful at preventing hostile take over , stock manipulations or monopoly ! Case in point ATNT & Microsoft .

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  2. In my opinion we need a new service provider, cause both digicel and lime is shate

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  3. Digicel hating lol

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  4. sorry my apology "..." you are not one of the aliases i referred to.

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  5. "A Shame"," ...." and "vway." You sound like a Cable & Wireless operative. I could recognise that you just changed your aliases. Sing for your supper, you might be the first to be laid off after the sale cause i know workers will be made redundant. Sing, Sing, Sing.

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  6. If lime takes over then I will move to spectra. Lime/cable & wirless has made us suffer to much in the pass. Those ppl will no longer get a cent from me.

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  7. If anyone in "position" is reading this article. Please do NOT let this happen. Do you remember how long the people were paying out the backside for outdated phones? Scratch that, do you remember when lime charged to make AND receive a call? If Cable&Wireless gains it's monopoly this is just going to end in tragedy, they are on their last lap and knows that FLOW and any other telecom company who comes in will hurt them bad. This company has cashed in for all these years.. please Rest In Peace

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    • digicel chaqrges me for drop calls and they interpret as no connection. 2nd they charge me for data whern i have unlimited data.. can anyone help me understqnd unlimited..

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  8. prices of internet landline and cable will surely go up unless there is some competition . I think that digicel should look into broadband so they could send both cable and internet to homes.

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  9. But y would u complain wasco which is owned by us. Superj was owned by one of our own but c/w, flow all of them are outside people which the bulk of it going away they shouldn't have no monopoly it was becuz of shit like that,that's y we were payin for both in and out going calls with c/w that should stop

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  10. But you were the one bringing politics into it....

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  11. I Don't hear us complaining about super j being the monopoly or lucelec or Wasco . The business politics is just too much tan smh

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