Digicel yesterday slammed Cable & Wireless?s $205 million bid to purchase KeyTech as monopolistic and not in the best interests of Bermuda.

JD Buckley, Regional CEO, said: ?It would be a bad day for Bermuda if C&W, a London based company steeped in a tradition of monopoly and under-serving its customers, gained access to Bermuda?s fixed line, mobile and internet markets, in addition to holding one of only two international licenses that currently exist within the local telecommunication industry.

?We believe that C&W would not be a good owner of this business and ultimately, it would not be in the best interests of a country that is so prominent on the global business stage.

?It is our opinion that this purchase would fly in the face of global trends that have moved away from monopolistic control of any telecommunications industry, negating we fear, much of the development and growth that Bermuda?s telecommunications industry has experienced over the past 20 years.?

In response Eddie Saints, president and CEO of Cable & Wireless, said: ?To be characterised by such statements is extremely disappointing.?

?This is an emotional reaction that doesn?t look at the facts and is misleading, this acquisition is not about reducing competition, it?s about the furtherance of competition.?

?People are trying to brand us monopolistic, we are not monopolistic. We are trying to build a platform that everybody can benefit from, a unified network both international and domestic that will create economies of scale that Bermuda has never seen before.?

Mr. Saints said the statement by Digicel will not jeopardise the proposed take-over. ?Shareholders and Government will decide, not the opinions of competition who will naturally oppose it and have not created strategies for the future.?

?For over 116 years, Cable & Wireless has established strong credentials as a long-standing telecommunications provider for Bermuda?s and its people.

?Cable & Wireless has made a proposal to purchase KeyTech Limited for $205 million and believe that the combined business, with a supporting regulatory framework, would create a better deal for consumers in terms of product innovation, customer service, and value for money.?

The statement released by Digicel suggests a rising level of disquiet from other telecommunications providers voicing their concern about the bid and potential ramifications for the industry.

KeyTech?s board of directors has rejected C&W?s bid, advising shareholders it opposed the offer as ?not in the best interests of shareholders and does not reflect the value of the company?.

TBI?s president and chief operating officer Gregory Swan said the C&W/KeyTech deal would fundamentally change the telecommunications landscape in Bermuda. ?Cable & Wireless would have the ability to offer a full suite of telecommunications products and services, solely from subsidiary companies, providing every service to every customer without ever leaving the Cable & Wireless family,? Mr. Swan said.

The vehement tone of Digicel?s statement clearly expresses its opposition to the deal, one it views as harmful and detrimental to the telecommunications industry.

?Digicel wishes to express its grave concern about the recent developments in the Bermudian market with regards to Cable & Wireless?s bid to purchase KeyTech Limited which it strongly feels is not in the best interest for the future of Bermuda and its people.?

Digicel said the Bermuda telecommunications industry represents one of the most advanced in the world.

But Mr. Saints said: ?We are not where we need to be, people are living in the past. There needs to be continued investment in ageing infrastructure to build world class global communications.?

?Cable & Wireless has, in conjunction with other Bermudian operators, been working in consultation with Minister Michael Scott and the Telecommunications Ministry to support the development of a more competitive and technically advanced telecommunications environment to benefit all of Bermuda?s consumers.?

Mr. Saints said: ?Ninety-three percent of Cable & Wireless?s revenues are generated in markets open to competition.?

?It is inconceivable that the Bermudian market would be any less competitive than other similar jurisdictions, any suggestion that it would, is missing the aim of our proposal for KeyTech, and the objectives of the current telecommunications review.?