19 July, 2007 - Published 20:11 GMT

Phone fight erupts over Caribbean

Cable and Wireless is facing a British High Court claim for millions of dollars in damages.

The telephone giant was hauled before the courts by its Caribbean rival Digicel, which has accused the British firm of stifling competition.

Irish-owned Digicel claims Cable and Wireless has been trying to obstruct its entry into English-speaking telecoms markets in the Caribbean - allegations Cable and Wireless denies.

Cable and Wireless has for decades enjoyed a monopoly on telecommunications in several Caribbean Countries but has recently had its position challenged by Digicel.

However, Digicel said it was "the victim of a co-ordinated effort" by Cable and Wireless to "prevent and delay" its plans to launch competing telephone networks in areas such as St Lucia, Grenada, Barbados and the Cayman Islands.

Digicel, which expects the case to come to court next year, is seeking damages amounting to "several hundreds of millions" of dollars.

Accusations denied

Cable and Wireless has flatly rejected its competitor's allegations.

In a statement on Thursday, it said Digicel's claims "are without foundation" and has promised to "vigorously defended" itself against them.

Cable and Wireless is the dominant telecoms operator in 10 out of 14 Caribbean markets, and operates in countries such as Panama, Britain, the United States and across Europe.

Digicel said it was "extremely frustrated" with the "continual illegal obstructions that we have encountered from Cable & Wireless".

The Jamaica-headquartered mobile provider said it hopes the legal case will put and end to "Cable and Wireless' anti-competitive practices".