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Digicel’s new service ‘a slap in the face’ to telecoms reform process

TBI president Greg Swan

Digicel’s launch of long-distance service is a “slap in the face” to Government’s telecoms regulatory reform process.This from TeleBermuda International President Greg Swan, who said he has been left “shocked once again” by Digicel, which last month announced it was acquiring internet service provider Transact.“This appears based on my interpretation to be in breach of their Class B licence,” he said. “We are trying now to get interpretation from the Ministry.”Mr Swan said what Digicel is doing” appears to be a gross deviation” from the legislation on telecoms.“We have to ask the question, what has changed?” he said.Mr Swan said the Ministry had been 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.“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,” he said.“We have always been mindful and respectful of the Telecoms Act as law … the reason for the regulation and the Act is to have some level of order and parameters in terms of how we function.”Mr Swan said: “If there’s not a sufficient remedy we will consider whatever other options are available to us.”Digicel’s rival in the cellular services market, CellOne, is seeking further information from Government, as it considers 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.North Rock Communications general manager Vicki Coelho said: “We have engaged legal counsel.” She said as a result she had no further comment.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, one rep 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 Telecoms Department gave no comment on the new Digicel service.

CellOne COO Frank Amaral