RTC Director

LIME blasts Holness, urges emergency overhaul of telecoms regulation

TELECOMS giant LIME yesterday accused former Prime Minister Andrew Holness of betraying Jamaican consumers when he reversed a requirement that Digicel maintain both networks as a condition of its proposed merger with Claro.

At the same time, LIME urged the Government to implement an emergency overhaul of the regulations governing the telecoms industry in order to protect consumers and other service providers.

"LIME is calling on the new Government to immediately implement the emergency legislation and overhaul the regulatory framework of the telecoms industry," the company said in a strongly worded statement. "We are asking the Government to take this action — with extreme alacrity — in the interest of Jamaican consumers as well as all current and any future telecoms service providers."

LIME's statement is the latest in a salvo of criticisms levelled at Holness for reversing the condition agreed to by his predecessor Bruce Golding and announced in August last year.

Under that arrangement, Golding said that both networks should be kept going separately until a new legal and regulatory framework could be established.

The merger plan was also approved on condition that the rate Digicel charged LIME for completing calls to Digicel customers would fall by $3.50 per minute and that Digicel gives back some of the radio spectrum that it now holds.

It must also honour its original commitment to provide coverage to 90 per cent of the island, he said.

Golding promised to bring a bill to Parliament "to enable the regulator to discharge its obligations more effectively" within six weeks (by October 11), but announced his resignation before he could complete that task.

Holness said that the bill was tabled in early December.

Last week, when it emerged that Golding's decision was reversed, Holness explained that the revised deal was not announced immediately because there were details to iron out: "I only got a chance to approve it. It had to go through the phases," he said.

But his explanation has not found favour with LIME which said it was "extremely disturbed" at the "decision to rescind a critical stipulation in the terms" without concurrently passing the promised legislation to facilitate a meaningful reduction in rates and safeguard the telecoms industry.

"We are equally dismayed at press reports attributed to Digicel, that Claro customers will retain their Claro phone numbers when they are involuntarily transferred by Digicel to their network. This would be a clandestine and privileged introduction of local number portability which appears to have been specially granted only to Digicel. This again gives the dominant player in the market an unfair competitive advantage and denies Claro customers of any real choice in the matter," LIME said.

"At every opportunity, LIME made clear to the previous Government and the regulators that the proposed merger was bad for competition and therefore bad for Jamaica, if the current inadequate legislative and regulatory environment remained unaddressed. Without those regulatory safeguards, which would include a meaningful reduction in the wholesale and retail interconnection rates charged by the dominant player Digicel, after over a decade since the liberalisation of the telecoms industry, Jamaica faces the dim prospect of the creation of a virtual monopoly in the mobile market," LIME added.

The company said that this was also a position which the former Government appeared to fully appreciate and pointed to Golding's labelling as "unimpressive", Digicel's offer to adjust its peak and off-peak cross network rates by $3 and $2 respectively.

"In light of this, Mr Golding committed that his administration would be bringing emergency legislation to Parliament within six weeks which we, and indeed the entire nation, would have expected to be used to establish a level playing field, and constrain Digicel from continuing to charge exorbitant and prohibitive rates," LIME said. "Eighteen weeks later, there is still no legislation, yet the condition that Digicel maintain separate networks has been removed."

The company argued that Holness's "removal of this critical condition, without the passing of the emergency legislation to safeguard the industry, has grave implications for the future of Jamaica's telecommunications industry".

This move, LIME said, grants Digicel a free ride and "is tantamount to a betrayal of the Jamaican consumers who are desperately seeking relief in this harsh economic climate".

JA OBSERVER

by RTC Director

Trinidad PM concludes state visit to India with business talks in Mumbai

In her final bid to lure potential Indian investors and entrepreneurs to the shores of Trinidad and Tobago, Prime Minister Kamla Persad-Bissessar on Friday reiterated her call for more Trinidad and Tobago-India economic and trade relations during a business seminar in Mumbai on the concluding leg of her state visit to India.

The event was hosted by Trinidad and Tobago’s Ministry of Trade and Industry and The Confederation of Indian Industry.

The prime minister took the opportunity to further encourage linkages between India and Trinidad and Tobago, praising the exemplary success of India on the global stage. In her address at the business luncheon Persad-Bissessar stated, “India has grown to become a trillion dollar economy with a largely self-sufficient agricultural sector buttressed by a diversified economy and a stable financial and services sector. My government recognizes that increasing urbanization and modern technology have brought about a remarkable change in lifestyles and consumption patterns of the citizens of India.”

The prime minister also commended the resilience of the Indian nationals as demonstrated in Mumbai’s recovery from recent terrorist attacks: “It is not easy to forget November 2008, when over a period of three days, this city was shattered by vicious terrorist attacks. The Mumbai attacks turned the eyes and hearts of the world to India.”

Persad-Bissessar indicated that both herself and prime minister of India, Dr Manmohan Singh will highlight the need to adopt a comprehensive convention on international terrorism to members the international community.

This business seminar concluded the state visit and trade mission led by the prime minister themed “Trinidad and Tobago-India 2012: Partnering for Diversification, Innovation and Investment”.

During the visit, the prime minister signed agreements in the areas of air services, traditional medicines, education, culture, agriculture and technical cooperation with India. The prime minister used the various business engagements and activities in India to effectively market ‘Brand Trinidad and Tobago’ and the country’s role as a gateway to the Americas and over 600 million people.

Caribbean News Now

by RTC Director

New Guatemala President Otto Perez Molina takes office

The new president of Guatemala, Otto Perez Molina, has been sworn into office after his election victory in November.

Mr Perez Molina - a former army general - has promised tough action to combat soaring levels of violent crime and drug trafficking.

He has also promised to reduce poverty and child malnutrition.

Mr Perez Molina, 61, is the first military figure to lead Guatemala since the return to democracy in 1986.

He took over from the Social Democrat Alvaro Colom, who was prohibited by the constitution from standing for a second term as president.

In a speech to thousands of cheering supporters in Guatemala City, President Perez Molina promised to bring "profound change" to Guatemala.

"We take over a country in crisis, a country close to moral bankruptcy, where respect for authority and the rule of law has been replaced by a culture of corruption and impunity," he said.

He promised to do his utmost to restore peace and security, and appealed for international help to combat drug trafficking.

Violent legacy

Guatemala has one of the highest murder rates in the world, with much of the violence blamed on criminal street gangs.

Its security forces have been battling against the rising influence of Mexico's powerful drugs cartels, who use it as a corridor for smuggling South American cocaine.

Mr Perez Molina, who leads the right-wing Patriotic Party, campaigned on a promise to restore security with an "iron fist" approach.

The scale of the challenge he faces was underlined on the eve of his inauguration, when a congressman and his brother were shot dead in the centre of Guatemala City.

Critics have questioned the new president's record during Guatemala's 36-year civil war, when the army committed widespread atrocities.

But the former general, who left the army more than a decade ago, denies allegations that he was responsible for human rights abuses.

Mr Perez Molina, who signed the peace accord that ended the conflict in 1996 on behalf of the army, said he would work for full national reconciliation.

"I pray that my generation is the last of war and the next one is the first of peace," he said.

by RTC Director

Chavez 'would accept' Venezuela election defeat

Venezuelan President Hugo Chavez has told opposition leaders that he will relinquish power if he loses elections due in October.

In his annual address to Congress, Mr Chavez said the opposition should also accept the result if he wins.

The left-wing leader - who has governed Venezuela for 13 years - is seeking another six-year term in office.

The opposition coalition will hold a primary election next month to choose a unity candidate to stand against him.

Some of Mr Chavez's strongest critics have suggested he might cling on to power at all costs if he were defeated at the polls.

But he told the National Assembly in Caracas that he would accept the election result whatever it was.

"If any of you win the elections I will be the first to recognise it, and I ask the same of you," he told opposition leaders.

"We are going to show our democratic maturity."

Crucial year

Mr Chavez, 57, said he expected 2012 to be a "year of tests" for Venezuela, but he was confident that peace and respect for national institutions would be maintained.

The Venezuelan leader reiterated that he had recovered his health after having surgery and chemotherapy for cancer last year.

Recent opinion polls suggest he still has the support of just over 50% of the population, making him the favourite to win the election.

Heavy spending on housing and welfare - funded by Venezuela's oil wealth - has helped sustain his traditional support base among the poor.

The opposition Democratic Unity coalition is hoping that dissatisfaction with rising violent crime and inflation will help it to unseat him.

Six candidates are standing for a primary election due on 12 February that will chose a unity candidate to challenge Mr Chavez.

Miami shutdown

In his speech, Mr Chavez also announced that he intended to close Venezuela's consulate in Miami after the US expelled a diplomat.

Venezuela's consul in Miami, Livia Acosta Noguera, was ordered to leave the US last week following allegations that she discussed a possible cyber attack on the US while based in Mexico.

Mr Chavez called the accusations against her "unjust" but indicated he would not be expelling a US diplomat in response.

by RTC Director