LEGAL ARGUMENTS began on Tuesday in the motion brought by Digicel Jamaica which is seeking a declaration from the Judicial Review Court that the Office of Utilities Regulation (OUR) had no authority to regulate its rates.
The OUR had taken the decision last year that there should be a decrease of about one-third in the prices of telephone calls from the fixed network to Digicel's mobile. It was announced in May last year that Digicel's rate should be lowered to $8 per minute at the highest band.
Digicel is relying on a ministerial directive by Philip Paulwell, Minister of Industry, Science and Technology in April last year directing the OUR not to intervene in the mobile (cellular) market by setting rates, tariffs or price caps on the interconnection or retail charges made by any mobile competitor.
However, the OUR is contending that it has the authority to set the rate.
Mr. Justice Mahadev Dukharan is hearing the motion in which Mossel Jamaica trading as Digicel Jamaica is seeking several declarations to quash the OUR's decision. Digicel is contending that in a competitive and liberalised environment, the rates should be determined by the market.
Attorney-at-law Paul Bes-wick, one of the lawyers representing Digicel, has argued that the OUR has breached the Telecommunications Act 2002. He submitted that promoting fair and open competition was the first mandate under the Act. He said the OUR seemed to be of the view that the provision under the Act which applied to the dominant voice carrier (Cable and Wireless) could apply to a non-dominant voice carrier such as Digicel.
Mr. Beswick argued that the attempt by the OUR to set fixed to mobile and incoming international calls termination rates to new entrants constituted a matter which the OUR was bound to refer to the Fair Trading Commission pursuant to section 5 of the Telecommunications Act 20002.
Centennial Digital Ja. Ltd., a mobile service provider, is also an applicant in the motion.
The hearing will continue today.
