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Phone war set to drag on for two more years

Telecom giants Cable and Wireless could face another two years of legal battles in their $100 million fight with Government.

Their main rivals TeleBermuda International revealed last night that they hoped for Government price protection for at least two more years.

Executives at C&W still want to know when the protection will end, so they can slash their own prices for long-distance phone calls and introduce other customer offers.

They are currently banned from dropping their rates so TBI can gain a foothold in the newly-opened telecommunications market.

But Cable and Wireless, in Bermuda for the last 107 years, have already lost 25 percent of market share and cut 26 jobs through voluntary redundancies.

They began fighting Government protection for TBI with a series of newspaper adverts.

And TBI's interim general manager Jeff Conyers last night accused C&W of an "aggressive'' policy which had even turned some of their own customers away.

He also said TBI would hire between ten and 12 new staff during the next two months, including at least eight Bermudians and some possible former Cable and Wireless staff.

Mr. Conyers, giving an exclusive interview to The Royal Gazette after speaking to Hamilton Rotary Club, added: "We have all been disappointed with the tactics that Cable and Wireless used, particularly initially.

"Having said that, we haven't seen any newspaper ads recently. I have no sympathy with those original tactics.

"They were really aggressive. But I think that is behind us now.'' Mr. Conyers, who is also vice-president of TBI, added that he hoped the Telecommunications Commission would approve Government price protection for "at least another two years''.

"We would like to have that guarantee for as long as we can,'' he said. "We would love to see it last for three, four or five years.

"But the reality is that we are hoping for another two years, minimum.'' The Telecommunications Commission are now reviewing documentation from TBI and C&W before deciding how long to extend the protection.

Phone war seems set to continue Commission Chairman Bob Stewart was unavailable for comment last night.

Meanwhile, Cable and Wireless chief Colin Little has refused to say publicly how much compensation the firm wanted from Government in their legal battle over protection.

He was also unavailable for comment last night.

But C&W officials have already issued a writ against Telecommunications Minister E.T. (Bob) Richards.

And Mr. Conyers added: "I do not know Colin Little that well but I have met him and thankfully this has not descended to a personal level.

"I can respect their business decision. But their position and their thought process was slightly different when they came in as the new boy in the UK, with Mercury.

"Now I think they have carried it too far. I would go as far as to say that there's even been a customer reaction against them for the manner in which they have handled it.

"They misunderstood the Bermudian marketplace, running it too much off the island, and that certainly didn't deter people from joining TBI.

"Not everybody has moved, clearly. But Cable and Wireless have been here for more than 100 years and they obviously have some good, loyal customers.

"The point about protected rates is a straightforward one. Cable and Wireless have an infrastructure which is paid for.

"You can't have an incumbent firm pricing lower than their own costs to drive newcomers out.'' Phone war seems set to continue Commission Chairman Bob Stewart was unavailable for comment last night.

Meanwhile, Cable and Wireless chief Colin Little has refused to say publicly how much compensation the firm wanted from Government in their legal battle over protection.

He was also unavailable for comment last night.

But C&W officials have already issued a writ against Telecommunications Minister E.T. (Bob) Richards.

And Mr. Conyers added: "I do not know Colin Little that well but I have met him and thankfully this has not descended to a personal level.

"I can respect their business decision. But their position and their thought process was slightly different when they came in as the new boy in the UK, with Mercury.

"Now I think they have carried it too far. I would go as far as to say that there's even been a customer reaction against them for the manner in which they have handled it.

"They misunderstood the Bermudian marketplace, running it too much off the island, and that certainly didn't deter people from joining TBI.

"Not everybody has moved, clearly. But Cable and Wireless have been here for more than 100 years and they obviously have some good, loyal customers.

"The point about protected rates is a straightforward one. Cable and Wireless have an infrastructure which is paid for.

"You can't have an incumbent firm pricing lower than their own costs to drive newcomers out.''