LIME & Digicel guilty of anti-competitive behaviour - TRC
In a statement issued June 1, 2012 the TRC stated that they found of anti-competitive behaviour, and if allowed to continue would “cause CCT to find it harder to compete in the future. As the level of competition reduces, prices could ultimately increase for consumers, leading to long-term harm to the welfare of consumers in the BVI.”
The regulatory commission said in light of that it has decided to impose Sanctions on both Digicel (BVI) and LIME (BVI) under Section 75(2) of the Telecommunications Act 2006, (the “Act”) which include an order to cease the anti-competitive behavior and the payment of a fine to the TRC by each operator.
Meanwhile, Managing Director of CCT Global Communications Jose Fernandez told Virgin Islands News Online that the TRC has taken a very long time to make a decision on the complaint which was filed three years ago in July 2009.
Mr. Fernandez said to end up with such a decision has confirmed all and every point raised by CCT in the original complaint in relation to the anti-competitive behavior by LIME and DIGICEL.“… almost three years later they are confirming and imposing important fines for both of them for the anti-competitive behaviour.”
The Managing Director said the anti-competitive behavior has caused CCT “serious damages” that are yet to be addressed and which is the company’s main concern.
Digicel to seek Judicial Review, rejects any wrongdoingWhen contacted for a comment on the matter, Digicel issued a statement in which it stated that it will be seeking a judicial review and "firmly rejects any suggestion of wrongdoing in this regard and further it is Digicel’s firm view that the TRC’s actions in this regard did not comply with natural justice or fair process given that a number of question marks remain over how the TRC has conducted its investigation process without allowing Digicel proper procedural protections."
According to Digicel, the determination directs the company to withdraw its Caribbean plan which provides great value on calls to other Digicel destinations across the Caribbean. "This is extremely disappointing for both Digicel and our valued customers as this is one of the most popular plans and allows our customers to stay connected to friends and family across the Caribbean for great prices."
Digicel further said "as the champion of competition in the telecoms sector across the Caribbean, Digicel is focused on ensuring its customers benefit from best value, best service and best network. As such, Digicel has every intention of defending itself vigorously against any allegations to the contrary and fully intends to contest the TRC’s findings via a Judicial Review."
Meanwhile, when contacted, LIME confirmed receipt of the report today and said they are currently reviewing the findings.
LIME said they will provide further comments where appropriate.
Chairman of the Board of TRC Ayana Hull, said “the Board has considered all the facts and evidence before it and we have been advised by independent experts unconnected to the BVI. In the face of clear anti-competitive behavior we are impelled to take action to stop this conduct and to safeguard the long-term welfare of the BVI consumer.”
BackgroundThe decisions by the TRC related to the investigations into the practices of Digicel and LIME as regards calls made from the British Virgin Islands (the “BVI”) to other islands within the Caribbean region. The investigations concerned a complaint from CCT over alleged anti-competitive behaviour of Digicel (BVI) and LIME (BVI) in pricing calls and termination services to other Digicel and LIME destinations in the Caribbean. CCT raised the complaint alleging that the retail prices charged by Digicel (BVI) to call specific Digicel locations in the Caribbean and the retail prices charged by LIME (BVI) to call specific LIME destinations in the Caribbean prevented CCT from competing effectively in the mobile market in the BVI.
The TRC’s investigation team carried out two separate investigations for Digicel (BVI) and LIME (BVI) and in each case, analyzed data from CCT and from the operator against which the complaint had been made. Draft Sanction Notices were presented to Digicel (BVI) and LIME (BVI) in May 2011 and June 2011 respectively and private hearings were held in July 2011 and August 2011 for each operator to put forward its point of view.
The TRC has published the Final Decisions on its website: www.trc.vg.
The TRC is a statutory body responsible for regulating the telecommunications sector of the Virgin Islands, protecting interests of users of telecommunications services, ensuring fair competition among operators of telecommunications networks and providers of telecommunications services, promoting the development of telecommunications throughout the Virgin Islands and advising the Minister of Communications and Works on telecommunications policies.
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