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TBI sues Digicel over long distance service

TBI president Greg Swan

By Marina MelloTeleBermuda International has launched legal proceedings against wireless provider Digicel to stop it offering long distance.A showdown between the two companies is expected as soon as today in Supreme Court and is likely to also involve representatives of the Government and Department of Telecoms.A source familiar with the case said the Government had been asked to intervene and order Digicel to stop offering long distance.Mr Swan has called Digicel’s launch of long-distance service a “slap in the face” to Government’s telecoms regulatory reform process.TBI president Greg Swan told The Royal Gazette his company filed the legal action late yesterday.Mr Swan said TBI is represented by Marshall Diel & Myers.“It’s basically action for an order to restrain Digicel from offering long distance service,” Mr Swan said.When contacted last night, Digicel CEO Wayne Caines said: “We have no knowledge of TBI Launching legal proceedings against us.”It’s understood TBI may not be the only telecoms provider to launch legal action against Digicel’s recent moves.Mr Swan has said the Ministry was very clear that regulatory reform was imminent and he finds it hard to believe the Ministry allowed Digicel to offer the new long distance service before reform.“This appears based on my interpretation to be in breach of their Class B licence,” he said.“I find it very difficult to understand how there could be an interpretation by Digicel that would lead them to believe they have within the scope of their licence to provide long distance.”Digicel’s rival in the cellular services market, CellOne, on Friday said it was seeking further information from Government, as it considered its response to the new service.“CellOne is awaiting clarification from the Department of Telecommunications and is also obtaining legal opinion on the matter before taking any action,” CellOne’s chief operating officer Frank Amaral said on Friday.And North Rock Communications general manager Vicki Coelho said Friday: “We have engaged legal counsel.”North Rock, an ISP, was also upset over the Digicel-Transact deal and at the time said it was “at a loss to understand” how the acquisition was permitted before reform.Mr Swan said he still had unanswered questions on the Digicel-Transact deal.Digicel Bermuda last week announced it was launching long-distance service, including a $35 plan with unlimited calls to the US, Canada, UK and Ireland. It also launched a Digicel Caribbean plan.The company’s customer service representatives were already pushing people to sign up for the new service, touting its clearness and lower rates compared to the other long-distance providers.Digicel customers are given a choice of which long-distance provider they want to go with for making overseas calls.But now they can just opt to stick with Digicel and get one monthly bill for local and overseas.It means the wireless provider is going into direct competition with licensed long-distance phone call providers TBI and LinkBermuda, formerly known as Cable & Wireless Bermuda.The move expands Digicel’s services ahead of the telecoms reform legislation, which is expected to tabled in the House of Assembly in November and which is intended to liberalise the sector by tearing down the current licensing restrictions.The Ministry over the Telecoms Department has declined thus far to comment on Digicel offering long distance.Minister of Environment, Planning and Infrastructure Strategy Walter Roban did not respond to a request for comment last night.

Digicel CEO Wayne Caines