The cell phone operators war

Digicel is accusing the well established Movistar of hampering its efforts of becoming interconnected with that network.

According to the new CEO of Digicel Panama, Raul Burgos, although an interconnection agreement was signed between the two companies on August 21, Movistar has not complied with the terms.

Burgos added that the dilatory tactics of Movistar is a pathetic and last minute strategy to delay the entrance of Digicel as a real competitor in the market. “With its arrogant attitude it only attempts to protect its interests.”

Interconnection among operators must be done by law to guarantee that consumers from other networks will be able to talk to families and friends regardless of who provides them with the service.

So far Digicel has managed to secure interconnection, physical and functional connectivity with the different communications nets such as C&W Mobil, C&W fixed service, Telecarrier and Cable Onda.

The Digicel network is ready to be launched and is waiting only for Movistar to honor their agreement.

The company so far has invested $350 million in its net and is creating 1000 jobs.

Meanwhile, Telefonica Moviles Panama, the company that owns Movistar said that the interconnection contract it signed with Digicel contains a schedule that it is complying with.

Telefonica Moviles admits that there have been some anomalies with regards to certain tests carried out between the two companies, but it is confident that the process of interconnection will be finalized successfully a week before the date stipulated by the contract, December 11, 2008.

In an interview with La Estrella, Telefonica Moviles said that it regrets that Digicel wanted to use public opinion to create expectations and misinformation in the community regarding a process that has been complied with and if Digigel has finished its interconnection process with other companies, it is important to know when it signed those contracts. This is not the first time telecommunication operators have attacked each other over interconnections. It happened before between Cable & Wireless and Telecarrier.