Internet rival goes after Cable & Wireless
Publish date: 20 December 2006
Issue Number: 1163
Diary: Legalbrief eLaw
Category: General
Cable & Wireless (C & W), the telecoms giant, is facing a major lawsuit in the Caribbean that could destroy the company\'s dominant position in one of its key markets.
The Independent reports that Cariaccess, a start-up company that has been trying to offer broadband Internet services in the region for five years, issued a writ in St Vincent against C&W. It is claiming damages of £22m against C&W and the National Telecommunications Regulatory Commission (NTRC), the island\'s telecoms regulator. Cariaccess claims that it was prevented from launching a broadband service by the wholesale charges that C&W was charging for access to its network. It alleges that the price on offer from C&W was several times the price the group offered to its own retail customers, making it impossible for Cariaccess to sell a competitive retail product. Cariaccess is suing the NTRC for not enforcing regulations that prohibited C&W from imposing wholesale prices on its potential rivals that were in excess of its own retail prices for broadband access. Full report in The Independent