Digicel May Withdraw Lawsuit against Antigua and Barbuda Following Settlement Agreement

Digicel may withdraw lawsuit against Antigua and Barbuda following a settlement agreement reached with the government. The telecommunications company had in May headed to court after the government instructed them to hand over some of their 850 megahertz spectrum to state-owned Antigua Public Utilities Authority (APUA). FLOW was also ordered to do the same.

Digicel rejected the order, saying it amounted to protectionism and anti-competitive behaviour on the part of the government. Apart from the fact that the move would require Digicel to fork out $25 million to rebuild its network, the telecom operator said APUA already controlled double of the spectrum of what they and FLOW jointly manage. The Irish company said the government was trying to seize a part of their high-speed spectrum for the use of APUA, a telecom rival.

“In any other market this would be a cause for concern for the regulator,” Digicel had said. “But uniquely, in Antigua and Barbuda, APUA is also the regulator, and hence holds the roles of both referee and player, allowing for protectionist and anti-competitive behaviour to run amok.”

The Antigua and Barbuda government however rejected the accusation, saying APUA had never been the telecoms regulator in the country.

The court granted Digicel an injunction against the government pending when the substantive case will be heard on September 23.

But following the recent settlement agreement, Antigua and Barbuda’s Telecommunication Minister, Melford Nicholas, revealed that both parties had come to a favourable resolution: Digicel will release 2 megahertz of their 850 band and 9 megahertz of their 900 band to APUA, as well as withdraw their court case against the government; the PM Gaston Browne-led government will in return allow the automatic continuity of Digicel’s operating licenses beyond 2021.

Digicel welcomed the new development, saying it “signals a new era of constructive relations with the government” as well as people and businesses of Antigua and Barbuda. It is anticipated that the telecoms operator will withdraw their case against the government when they both return to court on September 23.

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