Media Release - Friday, October 27, 2000
Immediate Release

Cable & Wireless Wins Law Suit Filed by Net2Phone

His Lordship Justice Henry Graham has ruled in favour of Cable & Wireless in a case brought before him by Net2phone in the Grand Court in the Cayman Islands.

Net2phone was claiming that Cable & Wireless had unlawfully interfered with their business when it blocked access to its website and network and prevented customers in the Cayman Islands from using a device known as the ‘Yap Jack’.

The American company also argued they were not providing a telecommunications service and as a result it did not breach Cable & Wireless’ license to provide national and international systems and services in the Cayman Islands.

Justice Graham rejected that argument. The court found that the plaintiffs were concerned with the production and marketing of a telephone service that intentionally breached the Cable & Wireless license. His Lordship determined that Cable & Wireless had acted appropriately by blocking access.

In commenting on the outcome of the case, Executive Vice President of Legal and Public Policy, Ms Lisa Agard, said ‘Cable & Wireless believes that issues of this nature are always better resolved through discussion between the parties concerned without recourse to litigation. We regret that this matter had to be determined by a court of law.

Backgrounder
On 15th September Net2Phone and two local Plaintiffs commenced proceedings against Cable & Wireless (Cayman Islands) Ltd, claiming that Cable & Wireless had unlawfully interfered with their business. This, Net2Phone claimed, was done by blocking access to its website and network and preventing customers in the Cayman Islands from using a device known as the ‘Yap jack’. The Plaintiffs sought an injunction to, among other things, prevent Cable & Wireless from blocking access to their website and facilities.

Cable & Wireless filed a counter claim alleging that Net2Phone was inducing Cable & Wireless’ customers to breach their contracts with Cable & Wireless. The terms of customers’ contracts expressly prohibit them from using or accessing any type of Internet telephony from the Cayman Islands. Cable & Wireless contended that its actions of blocking access to Net2Phone, were entirely lawful. The company was seeking to uphold the contracts with customers and protect its rights under the license granted to it by the Government, under the authority of statute. Cable & Wireless also applied to dismiss the Plaintiffs’ claim, on the grounds that it had no solid legal foundation.

About Cable & Wireless:
Cable & Wireless is a major global telecommunications business with customers in 70 countries. Its businesses around the world offer a range of services spanning broadband data, Internet and voice services. Cable & Wireless’ priority for expansion is the fast growing market of IP (Internet Protocol) and data services for business customers. It is making major investments in developing advanced networks and services in the US, Europe and the Asia-Pacific region to build the world’s leading global IP infrastructure. With the capacity of this advanced infrastructure and its presence in key business markets, Cable & Wireless holds a unique position in terms of global coverage and services to business customers.

For more information contact:

Andrea Fa'amoe
Public Relations Manager
Cable & Wireless, Cayman
Tel: 1 345 914 0553
Cell: 1 345 916 6033
E-mail: prm@candw.ky

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