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Cable & Wireless files writ to stop TBI from operating

Cable & Wireless has filed a writ in Supreme Court to prevent TeleBermuda International from introducing competition in the overseas phone call market.

But TBI has said that the writ will have no impact on its plans to provide long distance services to all the Bermudians and local businesses that have already signed up.

In a prepared statement, Cable & Wireless spokesman John Instone said that his organisation did not fear competition in the telecommunications industry.

He said: "However our experience demonstrates that this must be done within a proper regulatory framework which protects the interests of all customers in the market and provides fair treatment of existing and new operators.

"Such a framework has not been established in Bermuda and so Cable & Wireless believes it is not appropriate that TBI should be permitted to commence operations.

"We have taken this action reluctantly but we have a responsibility to protect the interests of our customers, employees and shareholders. We are not prepared to shirk that duty.'' This writ is the final step in a series of actions that Cable & Wireless has taken. Recently, the international telephone operators hoped to settle the legal row over competition out of court.

Cable & Wireless files writ against TeleBermuda International And they also issued an appeal against Government's decision to open the worldwide telephone business to competitors and this includes TBI.

But Michael Kedar chairman and chief executive officer of TBI dismissed Cable & Wireless' court actions, including the writ, as "frivolous and absurd.'' He said: "These are the desperate measures of a giant former monopoly which evidently thinks it should have a right to go on doing what it wants without fear of competition.

"The Government of Bermuda has issued TeleBermuda with a full licence to offer Bermudians competitive, quality, long distance services and that is exactly what we are going to deliver.

"The Government of Bermuda in licensing TeleBermuda as competition to Cable & Wireless' long time monopoly, did so in the best interests of Bermudian consumers, the best interests of Bermudian businesses and the best interests of Bermuda.

"If Cable & Wireless doesn't share those interests that's their business.'' In the past, Cable & Wireless general manager John Tibbles said he hoped the case would not reach the Supreme Court.

But yesterday's writ suggests that all other avenues have failed to find the resolution that Cable and Wireless is seeking.

It is understood that English barrister Lord Lester QC may play a role in the Supreme Court case because he has spoken with representatives of Cable & Wireless about its case during his recent stay in Bermuda.

Cable & Wireless now enjoys a monopoly on the international market -- which will be shattered when TBI begins business.

Lately, Cable & Wireless lodged a Supreme Court appeal against the Technology Minister John Barritt's decision to grant a public telecommunications service licence to TBI. The company feels the terms of its licence -- which require three years notice of any competition -- have not been complied with.

It says it should have been given the required notice -- or damages which could total millions of dollars. Cable & Wireless also believes the Constitution forbids Government from insisting that it share its network.

Information and Technology Minister Barritt said last night: "I am disappointed but not altogether surprised. The decision appears to be part and parcel of the Cable & Wireless strategy on the introduction of competition to Bermuda which is to mount a legal challenge.

"The introduction of competition in other jurisdictions has not been easy and I regard this as but another hurdle along the way to competition here in Bermuda.'' BUSINESS BUC