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Digicel cries foul over ‘appalling’ treatment by Govt

Digicel: Accusing Govt of favouring its rivals

Digicel yesterday took off the gloves in its battle with Government over the launch of long distance, saying the actions of Telecoms officials had caused it to suffer “enormous reputational damage”.Digicel accused Government of making a “dramatic u-turn on its decision to allow Digicel to provide international long distance service”.In a strongly worded statement last night, Digicel said it was seeking “exoneration of its victimisation by the Government”.The statement comes after The Royal Gazette revealed on Wednesday that Digicel was suing Government for substantial damages “for misfeasance in public office” as part of the protracted legal battle over its launch last year of ILD, which Government and Digicel rivals objected to.In its statement last night, Digicel pointed out that its ILD service has resulted in international call costs dropping “a whopping 66 percent”, while it has suffered “enormous reputational damage locally and internationally by being portrayed as a lawbreaking company that provides services without a licence”.“Digicel is seeking to inform its customers, the media, and the public at large of the appalling way in which it has been treated by members of the Government and Civil Service — in particular by individuals working for the Bermuda Department of Telecommunications over the past nine months — since its legitimate and Government-approved purchase of Transact,” Digicel said.“Since October 2011, Digicel has been the subject of numerous falsehoods and inaccuracies at the hands of the Government through a series of affidavits filed by its members and maliciously leaked to the media — and as such, it wishes to clarify and vindicate its position with regards to the same.“In September of last year, the Government of Bermuda expressly approved Digicel’s purchase of Transact — in the full knowledge of Digicel’s reasons for the purchase — which was to allow Digicel to provide International Long Distance (ILD) services through Transact’s Class C internet licence — thus introducing real competition into the international calling market for the first time in Bermuda. As the telecoms consumer champion, Digicel is motivated to provide ILD services for the benefit of Bermudian consumers and businesses.”As already reported by The Royal Gazette, Digicel said that on October 20, 2011, the company received a letter from the Bermuda Government “formally and expressly approving Transact’s provision of ILD using VoIP technology”.“However, since then, members of the Government’s Department of Telecommunications have attempted to perform a dramatic U-turn on its decision to allow Digicel to provide ILD services to Bermudians across the island. Furthermore, these members of the Department of Telecommunications essentially blocked an injunction which was granted to Digicel by Mr Justice Kawaley forcing CellOne to allow interconnection with Transact for the provision of ILD services — effectively stunting real competition in the market.“In addition to interfering with Mr Justice Kawaley’s decision and resiling from its prior approval of the Transact ILD service, these same members of the Government filed a series of affidavits which aimed to undermine Digicel’s reputation as one of the leading corporate entities in Bermuda delivering best service, best value and best network since its launch six years ago.”The statement continued: “(Digicel) has spent (and continues to spend) huge sums of money on legal proceedings trying to vindicate its position. These Government officials have refused to publicly acknowledge their blatant wrongdoing and refused to take responsibility for the damage inflicted on Digicel. these officials seem to believe that Digicel will allow itself to be bullied into submission.“It is Digicel’s belief that the Government has acted appallingly and has victimised Digicel by rescinding the approvals granted and filing false Affidavits in Court designed to damage Digicel — although the price of international calls has plummeted since Digicel shook up the market by introducing ILD.“This blatant discrimination against Digicel in favour of other operators in the market has extended into other critical areas of Digicel’s business and includes the creation of a gross imbalance in spectrum allocations between Digicel and its direct competitors — an imbalance which the Department of Telecommunications has refused to address over a six-year period. The Department has also allowed other operators to act well outside the scope of their licences with impunity. It appears that the Department sees its role now in terms of inflicting damage on Digicel at all costs.“Furthermore, it is also Digicel’s belief that the activities of certain officials will greatly damage Bermuda’s reputation as a place to invest and do business. This is the behaviour of countries administered by oppressive Governments — and not what one would expect in an ostensibly sophisticated business environment such as Bermuda.“As such, Digicel fully intends to pursue justice by whatever and all means possible in order to vindicate its reputation and seek retribution for the damage done to it so far. Digicel is also committed to fulfilling its plans to use its licence with Transact to deliver the best value, best service and best network to its customers across Bermuda.”