Digicel claims victory
Government may have to break its silence on the turmoil in the telecoms sector following Digicel’s acquisition of Transact and subsequent rolling out of long-distance service.After hearing arguments on behalf of four different telecoms providers, in two separate cases, Puisne Judge Ian Kawaley handed down a ruling yesterday which may have wide-ranging ramifications for the telecoms sector and consumers.Digicel last night claimed overall victory in yesterday’s proceedings, declaring the Supreme Court “ruled in favour of Digicel in response to allegations that Digicel is illegally offering long-distance services. Digicel was totally successful in defending the right of Transact to offer a long-distance telephone service to customers in Bermuda in competition with TBI and LinkBermuda. The judge (Puisne Judge Ian Kawaley) accepted that Digicel was entitled to market this service under the Digicel brand name.”Digicel added: “Specifically regarding TBI’s injunction against Digicel which would have prevented Digicel from carrying long-distance traffic to Digicel Bermuda customers this injunction has failed. Indeed, it is Digicel’s view that the application was wholly misconceived and constituted an abuse of process.”Digicel and Transact also yesterday had applied for an injunction compelling CellOne to provide its customers with interconnection to the Digicel network so they could subscribe to the new Digicel/Transact long-distance service.“This application was successful and seven days from today CellOne must start the process of interconnection unless the relevant Ministers apply to the Court objecting,” Digicel said, adding: “Digicel believes there is no basis for any objection from Government because it has done nothing wrong.”Digicel CEO Wayne Caines told The Royal Gazette last night the company was “deeply concerned” at being accused of circumventing the regulatory reform process when it had followed “all the regulatory procedures”.He said Digicel had not objected when M3 and CellOne merged taking the wireless market from three providers to two.“Is that not a slap in the face to reform?” he asked.Mr Caines added the increased competition will only serve to benefit consumers and Digicel hoped to make the long-distance service available for all residents in the very near future.Mr Caines said he could not speak to why the relevant Ministry had not spoken up before all the legal proceedings were launched.During yesterday’s second hearing, CellOne’s lawyer Larry Mussenden argued that Digicel may have “blindsided” telecoms regulators into approving its new long-distance service.Digicel had sued CellOne for not providing interconnection to CellOne customers who select Digicel’s new long distance service over TBI and LinkBermuda (former C&W).Appearing to side with Digicel in its legal action against rival CellOne - Mr Kawaley late yesterday afternoon granted a mandatory injunction compelling CellOne to provide interconnection unless the Government moves to oppose interconnection within seven days of his ruling.Mr Kawaley essentially put the ball in the Government’s court, urging specifically the Minister of Tourism and International Business Patrice Minors and/or the Environment Minister Walter Roban, to speak up if they don’t think what Digicel is doing is within its licence.He said the evidence suggested Digicel had “obtained the necessary regulatory consents to introduce a lucrative new service which has provoked their competitors’ ire”.However, Mr Kawaley said, CellOne “quite understandably is concerned about the Department of Telecommunication’s failure to promptly respond to a query as to whether the new service has been actually approved”.Mr Kawaley added that CellOne lawyer Larry Mussenden had “implied that the plaintiffs (Digicel), with aggressive commercial and legal manoeuvrings, may have ‘blindsided’ the regulators into giving uniformed approval to their new service plans. This seems implausible but in my judgement the Ministry should be afforded an opportunity to be heard before the Court makes an order with potentially wide-ranging ramifications.“I take this view because the only serious issue to be tried is whether or not the (acting) Minister of Business Development and/or the Minister of Telecommunications has/have as a matter of fact granted (Transact’s) September 1, 2011 licence on the understanding that - as read with the earlier July 1, 2009 Class C licence - it permitted the plaintiffs (Digicel and Transact) to do what they are seeking to do.”Digicel’s lawyer Jan Woloniecki showed declarations that the plaintiffs were lawfully permitted to market the long-distance telephone service provided by Transact under the Digicel brand name and that CellOne is obliged to provide interconnection.CellOne lawyers Mr Mussenden and Shade Subair argued CellOne was objecting to the interconnectivity because it will suffer reputational damage if its customers are encouraged to elect to use Digicel’s service and it is subsequently found to be unlawful. They also argued the 30-day period required for interconnection had not yet elapsed.But Mr Woloniecki argued the Court should ignore the 30-day time limit in circumstances where there was no good reason for a carrier requiring the specified time.Mr Kawaley’s ruling stated: “Unless the Minister for Tourism and International Business and/or the Minister for Telecommunications apply within seven days by letter to the Registrar to be heard in opposition to the plaintiffs’ applications for ex parte relief, until trial or further order the defendant (CellOne) shall take all necessary steps to establish, as soon as practicable and in any event within two days of the date of this order, full interconnection ... between the defendant’s network and the network of the plaintiffs (Digicel and Transact) for the purpose of enabling all mobile telephone customers of the defendant (CellOne) to have full access to the long-distance telephone service offered by the second plaintiff (Transact).”One of the numerous parties involved in all of yesterday’s legal proceedings said there had been concern over what he termed Government’s “deathly silence” on a matter that clearly required regulatory intervention.It was also pointed out by another involved in the proceedings that while North Rock and Logic also both offer long distance service - they are only allowed by their licences to offer that service to landline customers.