Bit raises its profile in bid for long distance phone licences
On the eve of the Telecommunications Commission hearing of two more bids for long distance telephone licences, an earlier applicant has asserted that its proposals are superior to others on display.
The two applicants, who will make proposals to the Commission today at Cathedral Hall are TeleBermuda International, and Bermuda Global Access.
In an unusual move Bermuda International Telcom (BIT) president Mr. John Casling said: "The greatest advantage offered by BIT's business proposal is the fact that we are the only applicant that has a firm agreement to lease a fibreoptic cable from a US carrier, Sprint.
"Sprint has always had the option of leasing cable to Bermuda, but no-one has ever applied to lease it.
"Bermuda International Telcom went direct to Sprint, who had made the original agreement with Cable & Wireless,'' said Mr. Casling, who owns Smugglers Reef, the Bananas chain of stores and Triangles.
He described the use of satellite as an alternative to a fibreoptic cable as a less effective means of transmission.
"We intend to work with Telco, and will not circumvent any form of revenue that Telco derives from overseas calls,'' he said. "BIT hopes volumes of international calls will be increased, and Telecom's revenue will rise.'' Mr.
Casling said his company had written a letter to Telco expressing these intentions.
Telco reaps 25 cents out of the $1.15 rate to the US, while C&W derives 90 cents. BIT said the same arrangement will continue with Telco, but BIT claimed it will not charge the whole 90 cents currently payable to C&W.
BIT claims it will instead lower rates.
"We understand that C&W currently charge `by the minute', and a 41 minute call would be billed as a five minute call. By using BIT, the end user pays for only the time they use,'' said Mr. Casling.
If Bermuda rates are compared with other destinations, they appear exorbitant.
BIT will be up and running by June this year, if it is granted a licence.
"The quicker the Government responds to all our applications, the sooner the business community and consumers will save,'' he said.
Other applicants, including Mr. Kenneth DeFontes of North Atlantic Telecommunications, and Mr. Jeff Conyers of TeleBermuda International, refused to comment publicly on the content of other applicants' proposals.
Other bidders Global Access Bermuda, the unrelated Bermuda Global Access, and Island Bell, could not be reached for comment.
Sources questioned the value of Mr. Casling making public statements on the bidding for the licences. Licences will be awarded following the hearings by a committee chaired by the Hon. Charles Collis.