By Al Edwards, Business Co-ordinatorLOCAL TELECOMS company Infotech & Controls' lawyers Chancellor & Co. yesterday filed a lawsuit against Cable & Wireless Jamaica (C&WJ).
This follows the expiration of an ultimatum served on Cable & Wireless by the independent provider.
At the centre of the issue is a debt in excess of $6 million that Cable & Wireless (C&WJ) says Infotech has accumulated since 1997 for an International T1 facility, and C&WJ's recent reluctance to pursue Interconnection negotiations with Infotech, using the alleged debt as a reason for the delays.
In a letter dated July 14, 2003, Infotech & Controls managing director, Dr. Patrick Dallas, wrote to CWJ's senior VP for sales and marketing, Ian Neita, demanding that Cable and Wireless again reverse the $6 million debt that C&WJ continues to claim that it is owed by Info Tech.
In his letter - which was copied to Commerce, Science & Technology Minister Phillip Paulwell, FTC executive director, Barbara Lee, OUR director-general J. Paul Morgan and Info Tech's attorneys Chancellor & Company - Dr. Dallas reiterated that "at no time did Infotech & Controls enter into a contract with C&WJ for the disputed circuit, neither did Infotech benefit from it."
The Infotech MD's letter pointed out that Cable & Wireless had confirmed the validity of his company's claim "by rendering a nil-balance invoice to (Info Tech) in October 1997" ...and went on to request "an official response from C&WJ within 48 hours that clearly absolves Infotech from the alleged debt". Infotech also issued a 72-hour ultimatum for Cable & Wireless to "identify how it will proceed with Interconnection negotiations". Failure to respond within the specified time, he said, would result in Infotech "commencing legal action against C&WJ for its failure to comply with the provisions of the Telecommunications Act for the provision of interconnection services."
The scene for Infotech & Controls' troubles with Cable and Wireless was set on February 27, 1997, when C&W's data sales executive, Angella Nelson, wrote to Dr. Dallas, pointing out that her company had "received an order from Sprint to install a 1.544Mbps circuit between....World Star Communications, 375 Part Avenue, Suite 3703, New York...and World Star Communications, TOJ, 47 Half-Way Tree Road, Kingston 10". She requested confirmation of the exact site for the Jamaican location, as well as information on the billing address for C&WJ's charges.
Infotech was at the time in negotiations with World Star for a co-location agreement and Dr. Dallas replied to C&WJ that same day, confirming that the Jamaican location should be the Infotech & Controls offices at 63 Half-Way Tree Road, but that the billing address for installation and rental charges was at World Star Communication's Park Avenue address in New York.
Despite this, Dr. Dallas says, several monthly bills were sent to Infotech & Controls and, on each occasion, Infotech advised C&WJ of its error. Finally, in an invoice dated October 1997, the company reversed the charges and sent Infotech a nil-balance invoice.
Cable & Wireless reversed that decision when Infotech and World Star decided not to pursue their collocation arrangement - effectively transferring the $6 million tab back to Infotech. According to Dr. Dallas, "We were threatened with disconnection if we did not pay the outstanding 'debt'....and in the face of our protestation, CWJ conceded only to allow us to keep our published telephone lines - disconnecting all our other lines," he added.
The Infotech & Controls MD pointed out that Cable & Wireless has used that "debt" over the years to repeatedly deny his company's applications for new or additional services - effectively curtailing Infotech's business activities in a rapidly expanding telecommunications marketplace. This situation was particularly difficult, he said, because Infotech & Controls had long been considered pioneers in developing Jamaica's telecommunications industry. "We couldn't exploit any of the opportunities that came out of the many ideas we developed - including several that we took to the phone company to discuss their exploitation in joint venture partnerships," Dr. Dallas added.
He pointed out that, in his efforts to keep the business alive, Infotech has made several attempts to break the impasses - meeting, over the years, with executives at varying levels of C&W, including former president Errald Miller. The most recent meeting was held on Tuesday, July 8, 2003 but, as stated in the letter Dr. Dallas sent to C&WJ on July 14: "After careful reflection following our meeting of July 8, we at Infotech have now been forced to accept that Cable & Wireless Jamaica is not prepared to make any serious effort to settle the matter of the disputed debt in any way, other than extracting some payment from Infotech- despite the fact that it should now be clear to all parties that we are not responsible in any way for that liability."
The Infotech executive noted that he had confirmed C&WJ's receipt of the letter but, as at Friday, July 18 - one full day after the expiration of the ultimatum - no response had been received. Given the urgent need, he said, to ensure that his company does not lose out on yet another business opportunity that has arisen, his company is taking legal action to stop C&WJ's harassment of his company that has persisted for more than five years.
Yesterday, when contacted by Wednesday Business C&WJ's corporate communications head, Errol K. Miller, said: "Cable & Wireless will vigorously defend any action brought against it by Infotech."
Al Edwards
Business Co-ordinator
LOCAL TELECOMS company Infotech & Controls' lawyers Chancellor & Co. yesterday filed a lawsuit against Cable & Wireless Jamaica (C&WJ).
This follows the expiration of an ultimatum served on Cable & Wireless by the independent telecommunications service provider. At the centre of the issue is a debt in excess of $6 million that Cable & Wireless (C&WJ) says Infotech has accumulated since 1997 for an International T1 facility, and C&WJ's recent reluctance to pursue Interconnection negotiations with Infotech, using the alleged debt as a reason for the delays.
In a letter dated July 14, 2003, Infotech & Controls managing director, Dr. Patrick Dallas, wrote to CWJ's senior VP for sales and marketing, Ian Neita, demanding that Cable and Wireless again reverse the $6 million debt that C&WJ continues to claim that it is owed by Infotech.
DALLAS HOLDS FIRM
In his letter which was copied to Commerce, Science & Technology Minister Phillip Paulwell, FTC executive director, Barbara Lee, OUR director-general J. Paul Morgan and Info Tech's attorneys Chancellor & Company Dr. Dallas reiterated that "at no time did Infotech & Controls enter into a contract with C&WJ for the disputed circuit, neither did Infotech benefit from it."
The Infotech MD's letter pointed out that Cable & Wireless had confirmed the validity of his company's claim "by rendering a nil-balance invoice to (Infotech) in October 1997" ...and went on to request "an official response from C&WJ within 48 hours that clearly absolves Infotech from the alleged debt". Infotech also issued
a 72-hour ultimatum for Cable & Wireless to "identify how it will proceed with Interconnection negotiations". Failure to respond within the specified time, he said, would result in Infotech "commencing legal action against C&WJ for its failure to comply with the provisions of the Telecommunications Act for the provision of interconnection services."
The scene for Infotech & Controls' troubles with Cable and Wireless was set on February 27, 1997, when C&W's data sales executive, Angella Nelson, wrote to Dr. Dallas, pointing out that her company had "received an order from Sprint to install a 1.544Mbps circuit between....World Star Communications, 375 Part Avenue, Suite 3703, New York...and World Star Communications, TOJ, 47 Half-Way Tree Road, Kingston 10". She requested confirmation of the exact site for the Jamaican location, as well as information on the billing address for C&WJ's charges.
Infotech was at the time in negotiations with World Star for a co-location agreement and Dr. Dallas replied to C&WJ that same day, confirming that the Jamaican location should be the Infotech & Controls offices at 63 Half-Way Tree Road, but that the billing address for installation and rental charges was at World Star Communication's Park Avenue address in New York.
SEVERAL BILLS SENT
Despite this, Dr. Dallas says, several monthly bills were sent to Infotech & Controls and, on each occasion, Infotech advised C&WJ of its error. Finally, in an invoice dated October 1997, the company reversed the charges and sent Infotech a nil-balance invoice.
Cable & Wireless reversed that decision when Infotech and World Star decided not to pursue their collocation arrangement - effectively transferring the $6 million tab back to Infotech. According to Dr. Dallas, "We were threatened with disconnection if we did not pay the outstanding 'debt'....and in the face of our protestation, CWJ conceded only to allow us to keep our published telephone lines disconnecting all our other lines," he added.
The Infotech & Controls MD pointed out that Cable & Wireless has used that "debt" over the years to repeatedly deny his company's applications for new or additional services effectively curtailing Infotech's business activities in a rapidly expanding telecommunications marketplace. This situation was particularly difficult, he said, because Infotech & Controls had long been considered pioneers in developing Jamaica's telecommunications industry. "We couldn't exploit any of the opportunities that came out of the many ideas we developed - including several that we took to the phone company to discuss their exploitation in joint venture partnerships," Dr. Dallas added.
ATTEMPTS TO END CONFLICT
He pointed out that, in his efforts to keep the business alive, Infotech has made several attempts to break the impasses meeting, over the years, with executives at varying levels of C&W, including former president Errald Miller. The most recent meeting was held on Tuesday, July 8, 2003 but, as stated in the letter Dr. Dallas sent to C&WJ on July 14: "After careful reflection following our meeting of July 8, we at Infotech have now been forced to accept that Cable & Wireless Jamaica is not prepared to make any serious effort to settle the matter of the disputed debt in any way, other than extracting some payment from Infotech- despite the fact that it should now be clear to all parties that we are not responsible in any way for that liability."
The Infotech executive noted that he had confirmed C&WJ's receipt of the letter but, as at Friday, July 18 - one full day after the expiration of the ultimatum - no response had been received. Given the urgent need, he said, to ensure that his company does not lose out on yet another business opportunity that has arisen, his company is taking legal action to stop C&WJ's harassment of his company that has persisted for more than five years.
Yesterday, when contacted by Wednesday Business C&WJ's corporate communications head, Errol K. Miller, said: "Cable & Wireless will vigorously defend any action brought against it by Infotech."
