…files lawsuit against Telco regulator in Suriname

DIGICEL has taken legal action against the Telecommunications Authority Suriname (TSA) for shutting down an alleged illegal “microwave link” which Digicel used to feed data capacity to its unit in Guyana.

According to a report from the Irish Times, the Surinamese authorities made their move “under pressure” from authorities in Guyana where Digicel’s rival is Guyana Telephone and Telegraph Company (GTT).

The report further stated that GTT has long complained that Digicel should be forced to buy its data capacity from its rival instead of feeding it over the border, presumably for less cost.

GTT recently said that it had recorded tens of millions of United States (US) dollars in losses because of their main competitor Digicel’s alleged bypass of GTT’s subsea fibre optic network. It claims the link is illegal. But according to the Irish Times, Digicel has denied those claims.

GTT, despite the odds, said that they are working through the loss with the hope of finding solutions and moving forward. “We believe that it is in the tens of millions of US dollars, but we are trying to work through it,” said Chief Executive Officer (CEO) of GTT, Justin Nedd, during a press briefing at Herdmanston Lodge on Monday.

Contacted by The Irish Times, Digicel said it is taking court action: “Digicel disputes any allegations of illegality and as the matter is currently before the court, we are unable to comment any further at this time.”

It is understood that Digicel is seeking an injunction to force TAS to reverse its actions. A ruling is expected soon, possibly next week. GTT, which is the only authorised provider of subsea fibre optic telecommunication services, has, on several occasions, called for an investigation into Digicel’s alleged illegal, unlicensed trans-border link between Guyana and Suriname.

In light of the allegations against Digicel and with a possibility that the “microwave link” could be broken, Nedd believes that GTT has the capacity to supply Digicel with data because in March this year, GTT’s fibre optic network was tested when the company had to carry the “traffic” for Guyana, Suriname and French Guiana.

Suriname and Guyana are two of Digicel’s only three markets in South America; the other being French Guiana.

According to the Irish Times, Digicel also has significant operations in Central America, the Caribbean and Pacific region, with about 14 million subscribers. It is currently seeking to raise $500 million in asset sales and also conclude a bond swap deal to help it ease the burden of its $6.7 billion debt pile.

From its launch in Jamaica in 2001, Digicel has expanded rapidly and spans across 31 markets in the Caribbean, Central America and Asia Pacific.

According to Digicel’s website, the company has invested over US $5 billion in the Digicel business worldwide and continues to invest to bring leading edge technologies to the markets in which they operate.