Twomey.over the course of approximately one year both companies have caused significant financial and market harm to other companies

Telecoms company Reliant Enterprise headed by Steve Twomey is calling on the Fair Trading Commission (FTC) to conduct an investigation into how the failure of both Newgen and People's Telecom to pay required fees into the Universal Access Fund distorted market prices.

Reliant maintains that in the case of Newgen, the company from August, 2006 until at least July, 2007 did not pay, as required by law, Universal Access Fund charges of US$0.02 for termination of each minute of mobile calls and US$0.03 for termination of each minute of Cable &Wireless PSTN minutes. Similarly, People's Telecom did not pay the exact same charges from June 2006 until July 2007.

In a letter written to the Director General of the FTC, Barbara Lee, in which Reliant formally filed its complaint against both companies, Reliant points out: "That both companies, by not paying required fees by law to the Universal Access Fund used this non-payment to reduce rates in the International Terminating Market for Fixed and Mobile termination, thus distorting market prices and manipulating the market by lower pricing to their advantage and to the disadvantage of competitors in the market.

That both companies used this advantage to 'dump' minutes at below cost rates into the Jamaican market to the disadvantage of competitors."

Reliant's complaint goes further with the company claiming that both Newgen and People's Telecom used some of the excess profits from this to further reduce rates, increase dumping and increase market distortion to the further disadvantage of competitors.

"Over the course of approximately one year both companies have caused significant financial and market harm to other companies in the International Inbound Termination market.

"We (Reliant) have documents in regards to market activity during this timeframe and concerns expressed to the Universal Access Fund, the Office of Utilities Regulation (OUR), and then Minister Paulwell regarding the non-payment that leads to our allegations."

However, calls by Caribbean Business Report to People's Telecom revealed something altogether different. People's Telecom General Manager, George Graham, said: "We have no idea why Reliant wants to play this out in the media. We have had no written confirmation on this matter from the FTC. In fact you need to establish whether Reliant itself has paid what it should have into the Universal Access Fund."

Graham went on to add that People's Telecom had indeed made payments to the Universal Access Fund and in fact not only paid but has overpaid.

"We will be taking the former minister, Phillip Paulwell, to court in an effort to obtain a refund. Attorneys, Rodrick Gordon and Dr. Lloyd Barnett will represent us. We have also written to the new minister under whose portfolio this falls, Clive Mullings, on this matter."

Newgen was embroiled in the Solutrea controversy earlier this year when it was brought to the public's attention that Paulwell's former advisor, Minette Palmer, served as a director of Newgen Technologies, and a principal of Solutrea. Solutrea was awarded a cellular licence without having paid the sums it was supposed to and Newgen failed to pay some J$18 million into the Universal Access Fund.

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