Cable & Wireless (WI) Ltd.

St. George's, Grenada, April 9, CANA - St. Kitts and Nevis Prime Minister Dr Denzil Douglas is suggesting that Cable and Wireless scraps plans to retrench nearly quarter of its workforce in the Caribbean. Dr Douglas was among four prime ministers addressing the signing of a telecommunications agreement between the Organisation for Eastern Caribbean States (OECS) and Cable and Wireless in Grenada at the weekend. The company announced it was retrenching 20 per cent of its staff in the region as it prepares for competition in the OECS market.

St. George's, Grenada, CANA - Scores of new companies have already applied to compete in a newly-liberalising telecommunications market in the Organisation of Eastern Caribbean States (OECS). This was stated by St. Kitts and Nevis Agriculture Minister Cedric Liburd who was in St. George's at the weekend deputising for the Minister of Telecommunications at the signing of an agreement the OECS governments and Cable and Wireless. However OECS officials are not listing the names of the companies at this time but say they represent the regional and international markets.

St. George's, Grenada, CANA - Five Eastern Caribbean governments and Cable & Wireless signed an agreement Saturday which will lead to a full liberalisation of telecommunications in a year and a half. The prime ministers described the accord as historic and looked forward to a new relationship with Cable & Wireless whereby ordinary citizens would be afforded the advantages of competition and access to Information Technology. The agreement stipulates that there be a transition period to full competition and liberalisation of the telecommunications sector in a minimum of 12 months starting April 1, 2001 and up to a maximum period of 18 months. The agreement identifies two phases in the transition to full competition.

OECS leaders and Cable & Wireless to sign agreement (7/4/01)

St. George's, Grenada, CANA - At least four prime ministers from the Organisation of Eastern Caribbean States (OECS) will be in Grenada today for the historic signing of a document with Cable & Wireless that signals the start of liberalisation of the telecommunications sector. The signing will end Cable & Wireless' monopoly in the sub-region and officially clears the way for competition in the telecommunications sector. The Memorandum of Understanding is geared primarily at governing the process by which agreements are reached during the transition period leading up to full liberalisation in about 18 months.

St. George's, Grenada, CANA - British telecommunications giant Cable & Wireless (C&W) and Organisation of Eastern Caribbean States (OECS) governments on Wednesday appeared closer to signing an agreement for the liberalization of the telecommunications sector in the sub-region. OECS Chairman and Grenada's Prime Minister, Dr. Keith Mitchell, told reporters that the basis for a final settlement had been reached. He expressed confidence that a Memorandum of Understanding governing the agreement would be signed before the stipulated March 31st deadline. A joint communique on the talks was being prepared for release Wednesday afternoon.

Kingston, Jamaica, CANA - Cable & Wireless says that it will invest over US$55 million in its continuing effort to deliver leading-edge telecommunications services to customers in the Caribbean.

In a statement Tuesday, the telecommunications giant said that a significant portion of the expenditure will go towards providing new capacity via submarine fibre optic cable systems linking Caribbean islands with North, South and Central America.

A new system, Maya 1 was commissioned last December, the company said, to provide a new route for traffic from the Cayman Islands into the United States at a cost of US$6 million.

Roseau, Dominica, CANA - Telecommunication negotiators in the Eastern Caribbean, are confident of a solution to an impasse between Dominica's two service providers, as part of continuing negotiations with Cable and Wireless on the liberalisation of the telecommunications sector.

"The governments are fairly clear that in arriving at any settlement, some consideration would have to be given to solving the Marpin issue, and so that is going to be an issue on the table for the negotiating team when it meets in Grenada next week," Head of the Legal Council of the OECS (Organisation of Eastern Caribbean States) Negotiating Committee, Phillip LaCobiniere, said in an interview with reporters in Roseau Thursday.

He said that the case of Marpin had been placed on the negotiations table as one of the issues to be resolved.

St. John's, Antigua, CANA - Antigua and Barbuda will soon have new telecommunications legislation as part of a strategy to make this twin-island state a hub for information technology, Prime Minister Lester Bird said Thursday.

Bird said the new legislation, which would replace the Telecommunications Act that has been in place for 49 years, would pave the way for a competitive telecommunications industry.

Already, there are three cellular telephone providers - the state-owned Antigua Public Utilities Authority (APUA), the privately-owned AirTel and Cable and Wireless.

At a Press Conference recently aired on ZIZ Television in St. Kitts representatives of C&W and the OECS governments indicated that agreement has been reached for libralisation of non-voice Internet services, Cellular Services and VSAT services to commence from April 2001 and for full libralisation to follow in a period of 12 to 18 months.

It was stated that the C&W threat to withdraw from St. Lucia remains on the table but a proposal is with the St. Lucia Government which, if acceptable, will permit C&W to withdraw their plans to leave St. Lucia. 

Basseterre, St. Kitts, CANA - The St. Kitts and Nevis government today protested the decision by Cable and Wireless to lay off at least 174 workers in the Eastern Caribbean because of pending competition in the telecommunications market.

Telecommunications Minister Dwyer Astaphan said that government would seek the support of other members of the Organisation of Eastern Caribbean States (OECS) in calling on the phone company to withdraw its plan to offer the workers voluntary separation or early retirement.

"I would ask the governments to call on Cable and Wireless in the strongest possible terms to hold off on this action ... wait and see," he said ahead of next week's meeting between the OECS and Cable and Wireless in Grenada.

Bridgetown, Barbados, March 12, CANA - Caribbean trade unions and hundreds of workers are pondering a plan by the British telecommunications company Cable & Wireless to terminate hundreds of jobs in the region.

With an estimated 424 jobs to go, labour organisers have expressed concern about the depth of the cuts. But the reaction from employees has been mixed, with some saying they were prepared to accept termination - once the offer was lucrative.

The key to the future of many employees is what Cable & Wireless on March 7 described as "attractive packages for voluntary separation and early retirement". Few details of the package have emerged, with a company spokesman saying only that workers would receive a month's salary for every year with Cable & Wireless, plus other benefits

Kingstown, St. Vincent, CANA - The Commercial, Technical and Allied Workers Union (CTAWU) will meet its Cable & Wireless St. Vincent members on Monday to discuss the British company's proposal to cut jobs here.

General secretary of the CTAWU, Lloyd Small, said the union wanted to hear its members' concerns in relation to Cable & Wireless' offer of early retirement and voluntary separation packages to its employees.

Cable & Wireless Wednesday announced it was seeking to cut almost 400 jobs in Barbados and the Windward Islands.

St. George's, Grenada CANA - A militant trade union leader in Grenada has said that there is "personal interest" behind moves to free up the telecommunications market in the Organisation of Eastern Caribbean States (OECS).

Chester Humphrey, who heads the Technical and Allied Workers Union (TAWU) that represents Cable and Wireless workers in Grenada was reacting to reports from neighbouring St. Vincent and the Grenadines concerning plans to open call centres there.

With just a few weeks before St. Vincent's elections government officials including Prime Minister Arnhim Eustace and Labour Minister Jerry Scott have been talking about the need for that country to invest in call centres to boost employment.

Cable and Wireless sheds jobs in the Caribbean (7/3/01)

Bridgetown, Barbados, CANA - The British company Cable & Wireless said on Wednesday it was moving to significantly reduce its staff levels in the Caribbean's "new competitive telecommunications environment". The company is planning to shed 374 jobs in Barbados and the Windward Islands (Dominica, Grenada, St. Lucia, St. Vincent). In Barbados alone, about 250 employees of the four Cable & Wireless companies are expected to be released by the end of August. "The move towards a liberalised telecommunications market in the Caribbean is well underway. To be competitive, the company must now move aggressively to prepare for the emerging challenges," Executive Vice President of Barbados and Windward Islands Trevor Clarke said Wednesday

St. George's, Grenada, CANA - The governments of the Organisation of Eastern Caribbean States (OECS) appear to be going into the next round of talks with Cable and Wireless in St. Kitts confident of a breakthrough.

OECS Chairman and Grenada's Prime Minister Dr. Keith Mitchell and his communications Minister Gregory Bowen believe that a final Settlement can be arrived at on Friday.

The two held talks in St. George's last Thursday with the London based Executive Director of Cable and Wireless and have expressed confidence that the meeting has laid the foundation for a final agreement on Friday.

The British telecommunications company Cable and Wireless and governments of the Organisation of Eastern Caribbean States (OECS) late Wednesday reported progress in crucial talks in St Kitts. But the company's position was still unsettled, with Errald Miller, newly-appointed Chief Executive Officer for the Caribbean and the Atlantic, quoted as saying he hoped "the matter of withdrawal from St Lucia can still be resolved before our licence expires on March 31". OECS countries have been negotiating Cable & Wireless' role in the region after its telecommunications monopoly ends, with competition being ushered in. 

Cable & Wireless had said that with little progress being made in the negotiations and with its operating licence running out in St Lucia it would pull out of Castries.

The two sides had lengthy talks in Basseterre Wednesday, with a view to clearing up some of the hurdles. In a statement released here, they reported "good progress" and a proposal for further talks in Grenada next week.

Following is the text of the joint statement:
"The governments of the OECS and Cable & Wireless are pleased that the meeting held in St Kitts and Nevis on Wednesday February 21 made good progress towards the introduction of competition in the OECS."

The two teams, led by Chairman of the OECS Dr Keith Mitchell Prime Minister of Grenada and Errald Miller, Chief Executive Officer at Cable and Wireless (Caribbean and Atlantic Islands) have both expressed satisfaction at the outcome of today's meeting.

In his opening remarks to both sides, the OECS Negotiating Team Leader, Prime Minister Mitchell, said: "I invite Cable & Wireless to participate fully with us in the development of the new liberalised and competitive telecommunications sector and in pursuit of this new competitiveness, to share the benefits in the new world economy."

Today, the parties agreed in principle to a number of key issues in relation to the liberalisation of the telecommunications sector in the OECS.

The principle of establishing working groups to work out the details of key areas such as cost-oriented prices and a fair and transparent regulatory environment has been agreed by both sides.

It was also decided that both teams would continue negotiations to determine the shortest practicable time for full liberalisation and resolution of the legal issues that have arisen.
With regard to the present St Lucia situation, Mr Miller said, "I am pleased with the progress that has been made today and I hope that the matter of withdrawal from St Lucia can still be resolved before our licence expires on March 31."

Also attending today's meeting was Prime Minister of St Kitts and Nevis, Dr Denzil Douglas, six ministers of government who have responsibility for telecommunications in the OECS governments and three attorneys general.

A further meeting has been proposed to take place in Grenada next week to continue negotiations."

Basseterre, St. Kitts, February 21, CANA - The Organisation of Eastern Caribbean States (OECS) and Cable Wireless on Wednesday opened a crucial round of negotiations that could ultimately decide the future of the British telecommunications giant in the region.

Cable & Wireless has admitted that if it failed to reach an agreement with the OECS which would halt the phone company's plan to pull out of St. Lucia, there could be a cloud over future relations with other OECS member nations.

Prior to Wednesday's face-to-face talks in St. Kitts with a delegation from Cable & Wireless, OECS Chairman and Grenada Prime Minister, Dr. Keith Mitchell, and his negotiating team held preparatory talks at the Eastern Caribbean Central Bank (ECCB) headquarters, the venue also for Wednesday's talks.

"We met a short while ago and firmed up our positions and at least clarified our positions on the major issues we have to put and discuss before the table," Mitchell told the Caribbean News Agency (CANA).

Mitchell said the OECS negotiating team would be tabling and reinforcing a number of positions during the one-day meeting that sub-regional leaders called for while in Barbados attending the 12th inter-sessional meeting of leaders of the Caribbean Community (CARICOM).

"Liberalisation is a must and we must have non-exclusivity of licences by the 31st March..." he said.

Other issues have to do with compensation, regulatory mechanisms, transitional periods and the fact that the sub-region would collectively negotiate future agreements with Cable & Wireless.

The Grenadian leader was accompanied to the talks by St. Lucia's Communications Minister, Calixte George, and his Grenadian counterpart, Gregory Bowen.

Cable & Wireless said that it was leaving St. Lucia because discussions with the government were going nowhere since November 1999 and that the administration of Prime Minister Dr Kenny Anthony had infringed the C&W contract by awarding a satellite licence to a St. Lucian call-centre operator.

While accepting the invitation to the meeting in St Kitts, the phone company said that "we are continuing the process of exiting St. Lucia unless the situation changes".

Asked whether the continued preparations to leave St Lucia while accepting the invitation to talk was a sign of negotiating in bad faith, Cable & Wireless' Executive Vice President for the Leeward Islands, Colin Shewry, said it would be irresponsible to do otherwise.

"I think it will be irresponsible if we didn't do that because the aim of Cable & Wireless is that there should be a transition that will be seamless where we want to minimise any kind of disruptions to staff and to the customers and so I think if we didn't actually plan for it and go down that road, we would be in a worse situation at the end of that period," Shewry said.

Press Release

February 9, 2001

Why Cable & Wireless is making plans to leave St Lucia

It is with regret that Cable & Wireless announces that, with the expiry of its existing licences on 31 March 2001, it is making plans to leave St Lucia and has informed the Government of St Lucia of this.  Cable & Wireless is disappointed that its best efforts to resolve the issues in St Lucia through negotiation have proved unsuccessful.

Cable & Wireless will work with the Government of St Lucia to ensure that the transfer of the country’s telecommunications operations is as smooth as possible in accordance with the terms of the relevant licenses.  Every effort will be made to protect the interests of Cable & Wireless’ customers and employees.

Cable & Wireless supports development of a competitive environment

Cable & Wireless is fully committed to the liberalisation of telecommunications in the Caribbean.   Liberalisation should take place in a fair and orderly manner in order to ensure sustainable competition.  To achieve this, it is essential to have well-structured legislation, effective regulation and an independent regulator. Cable & Wireless is committed to working towards this objective.

OECS discussions to date

Five of the OECS states, St Lucia, Grenada, St Kitts and Nevis, St Vincent and the Grenadines and Dominica, indicated in early 1999 that they wished to enter into negotiations with Cable & Wireless on a collective basis.  The existing licence arrangements varied between countries, particularly in St Lucia where the licences are due to terminate in March 2001.

Progress on these discussions has been and continues to be slow. Cable & Wireless had hoped that the last meeting between its representatives and the OECS Ministers on 31 January 2001 would reach a settlement of the outstanding issues and was disappointed that the meeting failed to get started.

St Lucia

Due to the slow progress in the OECS discussion, the imminent expiry of Cable & Wireless’ licences in St Lucia has become an urgent issue for resolution which appeared unlikely to be resolved during the timeframe for the OECS negotiations.

Accordingly, Cable & Wireless made the Government of St Lucia aware of the need to agree certain fundamental principles including tariff re-balancing, the phased introduction of competition and a fair interconnect regime.  Before any real progress has been made in resolving these outstanding issues, the Government of St Lucia has enacted new telecommunications legislation and, we understand, has issued at least one licence to a new operator.  This has resulted in an uncertain operating environment.

Although the Government of St Lucia had indicated its preparedness to extend Cable & Wireless’ licences in the short term to facilitate completion of negotiations, the basis of these licence extensions is unclear and appears inconsistent with both the bringing into effect of the new Telecommunications Act and the issue of a VSAT licence to one call centre services operator.

Cable & Wireless has amply demonstrated its commitment to encouraging new business ventures in St Lucia and had, in fact, offered HTS IT very competitively priced call centre services.  A good example of Cable & Wireless’ commitment is the facilitation given to Call Centres of Grenada, which currently employs 700 people.

Accordingly, Cable & Wireless cannot see how any agreement can be reached prior to 31 March 2001 and has, with regret, decided to make plans to leave St Lucia.

Way forward

Cable & Wireless has continued to make excellent progress in agreeing the basis for liberalising telecommunications markets elsewhere in the wider Caribbean region.

Cable & Wireless remains committed to the OECS and to the introduction of competition in these states provided this takes place in a fair, orderly and sustainable manner, governed by effective primary legislation and regulations.

Cable & Wireless stands ready to continue negotiations with the OECS and ECTEL in order to reach agreement on the regulatory and operating environment in the region.

For further information please contact:

Pat Bynoe-Clarke

Phn: 1-345-914-0640

Fax:  1-345-945-5312

Castries, St. Lucia, February 9, CANA - More evidence has been unearthed here revealing that Cable and Wireless, the region's telecommunications provider, is preparing to terminate its operation.

Indications are that the company is not just pulling out of St. Lucia, where its licences expires on March 31st 2001, and the Organisation of Eastern Caribbean States (OECS), but will eventually leave the wider Caribbean.

While the company's plan to sell its Caribbean assets is already documented in the January 27 edition of the Investors Chronicle, the St. Lucia government is now aware that the company has already begun shipping some of its equipment out of the island.

This discovery and a letter which government is reported to have received from Cable and Wireless' Head Office Thursday drew a prompt reaction from Prime Minister Dr. Kenny Anthony who promised to address the nation within the next ten days on the future relationship between government and the service provider.

Dr. Anthony said he would use next week's 12th Intersessional meeting of Caribbean Community and Common Market (CARICOM) Heads to bring his colleagues in the OECS up to date with the latest developments.

Local television station Helen Television Service (HTS) Thursday stated that it was reliably informed that the company had written government indicating that they may very well terminate their operations as early as the next few months.

The news report stated that Cable and Wireless had cited a number of reasons for its imminent departure, among them the recent granting of a TV Satellite licence to Helen IT call centre operation.

Helen IT Systems, a subsidiary of HTS Communications Group of Companies this week began operations with a staff of just under 600 persons.

The television report stated that in its letter Cable and Wireless expressed its disappointment with the granting of the licence, describing it as a breach of the current telecommunications licence which Cable and Wireless holds.

The domestic licences for Cable and Wireless to operate in St. Lucia expired on September 22, 2000 and the cellular and international licences will expire on March 31, 2001.

As a gesture of goodwill and to facilitate negotiations with the company, government extended their domestic licence by six months to coincide with the expiration of the cellular and international licenses.

However, negotiations with the company have not yet been finalised.

New telecommunications legislation that replaces the old monopolistic licenses with Cable and Wireless with new ones that liberalise the sector has been enacted in St. Kitts and Nevis, St. Vincent and the Grenadines and St. Lucia.

The legislation has come into effect in St. Kitts and Nevis, Grenada and Dominica and has terminated Cable and Wireless licenses in these islands. In St. Lucia the new telecommunications legislation comes into effect on April 1, 2001.

Word that Cable and Wireless was planning to pull out of St. Lucia when its licence expired first surfaced last month when a letter from the company to government was leaked to CANA.

The company complained that it was not pleased with the status of on-going negotiations with the OECS governments as it was literally forced into early termination of its existing license and left in the dark on its role in the new liberalized environment.

Cable and Wireless has so far not made any made any public statement regarding its plans to pull out of St. Lucia or the OECS but its January letter to government indicated that if the company failed to have the outstanding issue resolved it would be left with no choice but to invite government to buy the company out, as provided for under its licence.

A January 27th issue of the Investors Chronicle stated that Cable and Wireless was completing its transformation from telecommunications conglomerate to specialist provider of voice, data and Internet services to businesses.

As a result the company was disposing of a number of its assets, noting that "the Caribbean assets will also go once regulatory hurdles have been cleared".