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TBI’s case put on hold in Digicel court battle

Photo by Akil Simmons Expansion: Digicel yesterday announced it had acquired internet service provider Transact

TeleBermuda International’s case against Digicel was cut short in Supreme Court yesterday - after Digicel said its new long distance was being offered through internet service provider and sister company Transact.Digicel lawyer Victor Lyon QC argued: ”Our defence is very simple, Digicel is not offering customers long-distance calls, Transact is.”He said the long-distance service was being offered under the Digicel brand.Puisne Judge Ian Kawaley adjourned the case for a week to a day to be determined later.Last month Digicel announced it was acquiring Transact.And last week Digicel announced it was launching long-distance service to its postpaid customers, including a $35 plan with unlimited calls to the US, Canada and the UK.TBI took legal action yesterday against wireless provider Digicel to stop it offering the new long distance service.TBI’s lawyer Mark Diel argued Digicel was “not complying with their licence”.But at a hearing yesterday before Mr Kawaley, Mr Lyon, of Attride Sterling & Woloniecki, argued Digicel was doing nothing wrong.He said customers who sign up for the new long-distance service marketed by Digicel actually sign contracts with Transact.Transact offers the overseas voice service via CableCo’s cable.Mr Lyon presented supporting documents to show Government had approved the Digicel-Transact deal and claimed the Minister over the Telecoms Department had approved the new service.He argued there was no case to answer for any injunction against Digicel, which itself was suffering, he said, because of the “enormous confusion” caused by TBI’s action.He said TBI ought to have inquired of Digicel what was going on, instead of “rushing to conclusions” and taking legal action.No one representing the Government was in court yesterday.Fed-up TBI has called Digicel’s launch of long-distance service a “slap in the face” to Government’s telecoms regulatory reform process.“This appears based on my interpretation to be in breach of their Class B licence,” TBI president Greg Swan has said.They were hoping in court yesterday to restrain Digicel from offering long distance service.Mr Diel said TBI was losing customers as a result of the new service.Following Digicel’s submissions, and Mr Lyon’s argument there was no case to answer, Mr Diel asked for time to review the documents presented yesterday by Digicel and to take further instruction from his clients.He added though, it’s “easy to get confused” over what Digicel is saying, arguing Digicel in announcing the new long-distance service had said it was for “its post-paid mobile customers”.“Transact does not have mobile customers!”, he pointed out.

Puisne Judge Ian Kawaley