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Amendment & Assignment Fees

Contents:

Introduction

With effect from 23 October 2007, the following amendment and assignment fees must accompany an application to amend or assign a Licence for an information and communications technology (ICT) Network or an ICT Service. Cheques should be made out to "The Information and Communications Technology Authority", and should be in Cayman Islands' dollars drawn on a Cayman Islands' bank. Fees may also be paid by a wire transfer or a bank draft from a foreign financial institution. Please contact the Authority for details.

 

It should be noted that no application will be processed until all amendment and assignment fees have been received.

 

The Authority reserves the right to charge additional fees/amounts for revisions to existing licences of a particularly unusual or complicated nature.

 

Amendment Fees

Currently, all the ICT Licences are identical in wording, save and except the Annexes that are attached to each ICT licence. The Annexes differ between Licensees because they contain information that is unique to each Licensee's network, services and roll-out plan. The amendment fees discussed in this section pertain to any changes to the Annexes to each Licence; they do not address the fees that would be required to amend the body of a Licence. Where the Authority determines that all Licences or a category of Licences must be revised, the Authority will initiate the amendment process and no amendment fees will be required to be paid by Licensees.

 

The fee to amend the terms and conditions of an existing licence is CI$250.00 per Annex. Examples of amendments include such things as: additional spectrum, additional international point codes and additional exchange codes (NXX).

 

Amendments do not include the inclusion of new ICT networks or services in an existing licence. In such cases, Licensees must pay the requisite application fee and apply for a new ICT Network or ICT Service to be included in their Licences.

 

Fees for Assignments or Dealing in Shares

As set out in sections 25 and 27 of the Information and Communications Technology Authority Law ("the Law"), the assignment or transfer of an existing licence from one Licensee to a third party, or the transfer of shares or an interest in a Licensee, requires prior consent or approval by the Authority.

The fees to assign or transfer an existing licence from one Licensee to a third party, or to transfer shares or an interest in a Licensee, are as follows:

 

  1. In the case of a transfer of licence, the fee is half of the application fee payable by the Licensee to add each ICT Networks and ICT Services to Annex 1 of the licence (a full list of these application fees is available here.);
  2. Where the applicant is seeking, either directly or indirectly, to acquire a controlling interest in the Licensee, the fee is the same as in (1) above;
  3. Where the applicant is seeking, either directly or indirectly, to acquire a non-controlling interest in the Licensee, or to modify his/her/its interest without losing a controlling interest in the Licensee, the fee is CI$500.

For the purpose of (1), the Authority is required, as set out in section 27(3) of the Law, to publish the proposed assignment of a Licence in the Gazette before approving the assignment. Concerning dealing in shares, the practice of the Authority is to publish in the Gazette proposed significant changes in equity participation before granting its consent. Publication in the next regularly scheduled issue of the Gazette is included in these fees. However, any additional costs such as the fees for publication in an Extraordinary Edition of the Gazette shall be recovered by the Authority from the Licensee, as a separate charge from the assignment fees.

 

For the purpose of (2) and (3), the following rules shall apply:

 

  1. A person has an interest in a Licensee if the person is the legal or beneficial owner of shares in the Licensee, or by operation of paragraph (e) below, is taken to have an interest in the Licensee.
  2. A person has a direct interest in a Licensee if the person has an interest in it otherwise than by operation of paragraph (e) below.
  3. A person has an indirect interest in a Licensee if the person has an interest in it by the operation of paragraph (e) below.
  4. An interest in a Licensee is a controlling interest if the interest consists of more than 50% of the Licensee’s shares, or if any right, power or privilege attached to or accruing by virtue of the interest permits the appointment by the holder of the interest of a majority of the members of the board of governing body of the Licensee.
  5. A person shall be taken to have an interest in a Licensee if the person has an interest in any company that has an interest in that Licensee, or that has an interest in a company that has an interest in that company, and so on down the line.
  6. A change in control of a Licensee includes, where the Licensee is a company, a transfer of a controlling interest in it.
  7. “Shares” includes tradable equity in any form.
  8. “Person” includes a natural person or a company, as well as a group of persons consisting of two or more persons comprising any person and one or more of the following, that is, a spouse, child, step-child, adopted child, grandchild, parent, step-parent, grandparent, brother, sister, half-brother and half-sister.
  9. “Spouse”, in relation to any person, means the legal husband or wife of that person, or a person of the opposite sex who, although not legally married to that person, lives with that person in the same household as if the two were husband and wife and have been so living for a continuous period of five years. Where a person is judicially or otherwise separated from a legal spouse, he or she shall not be considered to have any other spouse except that legal spouse.