(CMR) Telecommunications operator Infinity Broadband Ltd (C3) has challenged OfReg's authority to collect license fees after OfReg issued an enforcement notice that lists repeated failures of C3 to pay its Licence Fees, as well as failure to submit its audited financial reports.
OfReg has issued C3 with a notice outlining the demands for payment of outstanding fees, including any interest accrued and the proposed imposition of fines for the various breaches.
License fees are collected from all information and communications technology (ICT) licensees and are comprised of two parts – a “Royalty Fee” that OfReg collects on behalf of the Cayman Islands Government and is reflected as government revenue and a “Regulatory Fee” that covers OfReg’s costs of regulating the ICT sector.
Following several reminders and requests being sent to C3, OfReg issued C3 with an initial enforcement notice in July 2022 setting out C3’s failure to pay its license fees totaling, at that time, over CI $500,000 (including interest). At that time, C3 had also failed to submit its required audited financials for 2021.
C3 issued a response challenging OfReg’s authority to collect license fees as per the obligation set out in C3’s own ICT license and demanded that OfReg pay back fees already paid by C3 for previous periods.
Following this challenge, OfReg continued with enforcement action and issued a final determination in late August 2023. The determination confirmed the OfReg’s position that C3 was, and remains, obligated to pay its license fees and submit its financial reports, and as such C3’s failures amounted to a breach of its license. As a consequence, OfReg issued C3 with further notice on intended fines for the breaches beyond any demand to pay the outstanding fees.
C3 has now initiated a legal challenge to OfReg’s determination through the courts.
Prior to the issuance of the enforcement notice in July 2023, C3 submitted its outstanding audited financial reports. C3 has also not paid license fees beyond the amount referenced in the enforcement notices for the period from July 2022 to present.