Digicel May File Libel Suit Against Guyana Telecom Rival

GEORGETOWN, Guyana (AP)--An Irish-owned telecommunications company trying to enter Guyana's mobile phone market may file a libel lawsuit against a U.S.-owned rival firm that already has business in the country.

Digicel said this week it was "strongly considering a claim against" Cel.Star Guyana Inc. and its parent company, California-based Trans-World Telecom. The claim would be a countersuit to a $30 million lawsuit that Cel.Star filed against Digicel, accusing the Irish firm of corporate sabotage.

In its lawsuit, Cel.Star alleged that Digicel had hired some of its senior employees in order to obtain commercially sensitive information. Digicel denies the allegations and accuses Cel.Star of trying to slow down its plans to enter Guyana's market.

"We will not tolerate libelous statements and are aggressively pursuing actions to vindicate our name and reputation in the Caribbean region and beyond," said Raoul Fontazen, chief executive officer of Digicel Caribbean Group.

High Court Judge Winston Patterson had granted an injunction last week forbidding Digicel from trying to get information from Cel.Star employees, but Chief Justice Carl Singh and Judge Dawn Gregory-Barnes dismissed the injunction Monday.

A hearing date hasn't yet been set for Cel.Star's lawsuit.

Trans-World and Cel.Star officials didn't immediately return phone calls seeking comment.

The main telephone provider in Guyana is the Guyana Telephone and Telegraph Company, which is 80% owned by the U.S. Virgin Islands-based Atlantic Tele Network Inc. (ANK) and has more than 150,000 subscribers. It has been operating since 1991.

Cel.Star, which began providing service in December, has about 10,000 subscribers.

President Bharrat Jagdeo last month said cellular phone service wasn't operating at acceptable standards in the former U.K. colony of 700,000 residents. He said his administration wanted to award a third operating license this year.

Digicel Group operates in Aruba, Barbados, Cayman Islands, Grenada, Jamaica, St. Lucia and St. Vincent and the Grenadines. It also recently bought Curacao Telecom N.V.

Many countries in the English-speaking Caribbean opened their telecommunications sector to competition three years ago, pledging to end more than four decades of monopoly by British-based Cable & Wireless PLC (CW.LN).

(END) Dow Jones Newswires"

Posted to the site on 24th April 2005