Lavern Clarke, Business Editor

( L - R ) O'brien, Robertson

Digicel Group, a fast-growing mobile company owned by Denis O'Brien of Ireland, has filed suit against its main rival in the Caribbean, saying Cable & Wireless Plc had illegally employed tactics to delay its entry into seven regional markets, and claiming unspecified damages.

C&W in a short statement immediately dismissed the suit, saying it was without foundation and would be vigorously defended.

"We believe that the claim is no more than a deliberate spoiling tactic by Digicel," said the company.

The two telecoms, even before the suit, had been trading barbs about market dominance.

C&W, which operates in 33 markets, had claimed dominance in the Caribbean market, repeating yesterday that it was the leader in 10 of 14 countries in which it operates - the company has not produced the figures in validation - but Digicel has been pouring scorn publicly on the assertion, saying that the UK company should prove its claim.

Digicel itself reported market growth of 144 per cent last year in its 22 markets to reach 4.7 million subscribers, 1.7 million of which are in Jamaica.

Its suit, a copyof which was obtained by the Financial Gleaner, names C&W and five of its subsidiary operations as defendants — C&W West Indies, and national operations in Barbados, Grenada, Cayman Islands, and Telecommunication Services of Trinidad and Tobago — saying the parent company "conspired to commit breaches" with one or more of the other defendants in the respective markets to impede Digicel, between the years 2002 and 2006.

During the period, the mobile company said it incurred additional costs and expenses for interconnection, and loss of management and staff.

Jamaica was not named among the defendants, though it was Digicel's first base of operation, but the suit mentioned that the company experienced some "initial resistance and procrastination on the part of C&W", acting through C&W Jamaica.

"We believe that a successful claim will not only compensate Digicel for the losses it has suffered but also that it will put an end to the anti-competitive practices of C&W," said O'Brien, quoted in a company release on the suit.

"This will be of undoubted benefit to all network operators and more importantly all mobile users in the Caribbean."

Digicel is anticipating that the award of damages, if the case succeeds, will amount to "hundreds of millions of pounds."

The suit, basically, asks the court to delve into the UK company's accounts to ascertain "all financial gains and benefits made/obtained directly or indirectly by C&W by reason of the unlawful conduct pleaded above" in pursuit of 'restitutionary' damages.

Digicel is also claiming exemplary damages saying C&W had "cynically calculated" that it stood to lose less than Digicel had to gain in employing its delaying tactics.

The company anticipates that the case will come up for hearing in the high court in 2008.

lavern.clarke@gleanerjm.com