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Cable & Wireless Jamaica Limited

Cable & Wireless Jamaica Limited (CWJA/ LIME) has advised that Digicel has filed what LIME considers to be an un-meritorious suit claiming approximately J$1.7b being primarily moneys lawfully retained by LIME (J$1.4b) in accordance with the OUR approved regulatory regime under which the industry has been operating since 2001 when the market was liberalized and Digicel first interconnected with LIME . The sum claimed by Digicel is money properly due to LIME as approved by the OUR in its decision on CWJA`s Reference Interconnection Agreement namely the Modifications of RIO 3 OUR Determination dated November 22, 2001. The said regulatory decisions have to date been unchallenged and accordingly, subject to the caveat that court cases are ultimately unpredictable, CWJA is confident that the Courts will find in favour of LIME on that element of the claim.

Regarding the remaining J$0.3b of the claim, this relates to LIME`s prepaid homefone service. Although this was a new fixed line service developed and offered by LIME to LIME customers at a differential rate (J$10 per minute) from the original postpaid fixed line service (J$7 per minute), Digicel nonetheless is claiming as its revenue, the differential paid by LIME homefone customers . LIME has advised that the company completely rejects this claim and will also be vigorously defending this.