Cayman’s telecommunications regulator OfReg has served cease-and-desist notices to local businesses to block the sale of satellite internet terminals.
OfReg, in a statement Friday afternoon, said it took the action “to protect consumers” and stop the sale of the terminals being offered for purchase by a number of businesses.
“Cease and desist notices have been served to Cost.U.Less and Shop Smart Cayman who did not obtain the authorisation necessary to legally import and re-sell the equipment,” the regulator said in its statement.
It explained that the terminals, which the Cayman Compass understands retailed for around $500 in some cases, can connect to satellite networks like Starlink.
However, OfReg said satellite companies are not currently licensed to provide services in the Cayman Islands.
“Anyone buying the terminals would find themselves unable to legally put them into service. Our actions ensure that consumers do not end up buying equipment for a service that is not available,” it said.
The regulator did indicate that it is exploring options for the introduction of satellite-based internet providers in the country “to ensure that any such service is correctly licensed, meets consumer expectations, and provides services on the same terms as existing suppliers”.
Shop Smart Cayman owner Naresh Kundnani, responding to Compass queries on Saturday, said it was “shocking” when they received the regulator’s notice to cease and desist.
“I wasn’t aware of any regulations on this particular product, which was in very high demand,” Kundnani said via email.
He said a customer requested a terminal for his family in Jamaica so he ordered one, and subsequent to that, another customer requested a terminal.
He said he made the two orders as it saved on shipping costs.
“If I was aware of this, I would have not ordered it. Luckily, it was only two pieces. I am not planning to get [others] until I decide to apply for its license. There is huge demand for this product. Cayman should be open to this product because most of its residents will get benefit of saving on [internet] costs,” Kundnani said.
The Compass also reached out Cost.U.Less for comment and is awaiting a response.
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“Anyone buying the terminals would find themselves unable to legally put them into service. Our actions ensure that consumers do not end up buying equipment for a service that is not available,” it said.
I don’t have this system but friends do and they work perfectly well.
Why is OfReg trying to preserve the current Flow / Logic / C3 oligopoly and limit customer choice?