The Government will next month finally unveil a new regulatory regime that will fundamentally change the Island's telecommunications sector.But Minister of Environment, Planning and Infrastructure Walter Roban warned yesterday the current policy stays in place until then and any bundling of services was not allowed.Mr. Roban told a news conference yesterday that the overhaul will see the introduction of one universal licence, and do away with the current system of separate classes of licences.Digicel set off a legal firestorm after launching long distance service for wireless subscribers with sister company and Internet provider Transact.TBI's case against Digicel was scheduled to resume this afternoon in Supreme Court. Mr. Roban said yesterday he planned to table both the Regulatory Authority and Electronic Communications Bills in Parliament on November 18. Before then, he said he planned to meet with Cabinet and Telecoms stakeholders to share the bills and implementation plan with them.The reform will see the functions of the Department of Telecoms split between the Department and the new Regulatory Authority. The Regulatory Authority will be staffed by experts and be self funding “with revenues derived from the industries that it regulates”, Mr. Roban said. However, he added, Government will help fund the Authority at least in its first year.“For the first year of implementation, and mindful of our current economic climate, it is our desire to not place a financial burden on the industry or on the users of telecommunications services. We will be seeking from the Ministry of Finance an allocation for the Authority's operating expenses.“The level of finding obtained will determine the level of operation that can be sustained in the first year.”Mr. Roban said once set up, the Authority will have the role of determining technical issues such as spectrum/frequency allocation, market dominance and local number portability.He added: “I can confirm now that the Bills have not materially changed since the last versions that were shared with industry stakeholders.“But the implementation of reform has shifted. This shift is a direct reflection of the change in economic circumstances of the Government, the industry, and the public since the initial plans were developed. Rather than establish the Authority in full upon passage of the Bills, we will phase its implementation.”Mr Roban took the opportunity at yesterday's news conference to again stress that current Telecoms licencing policy had not changed. He refused to comment specifically on Digicel's long distance service through Transact, due to pending legal actions involving TBI, Digicel and CellOne.However, he did say: “No doubt you will have noticed significant changes in the corporate structure of a number of telecommunications companies.“Let me be clear that while the Government has approved such corporate restructuring, it has insisted that all licence classes be operated and managed separately. For example, a holding company that owned a Class B licence holder and a Class C licence holder must operate the companies holding those licences as separate entities and must not bundle the services provided by those separate companies.“The Government was clear that it wished to encourage investment in Bermuda, investment in telecommunications infrastructure and investment in jobs for Bermudians, while maintaining a level playing field for existing providers.“We are satisfied that most providers understood this policy and conducted themselves accordingly, to the benefit of all. We believe that this is the correct position, will reiterate it whenever necessary, and are prepared to put it to the test. “I am certain you might wish to pose questions about a specific provider that is indeed seeking to test our policy. As legal questions on this matter are currently before the Courts, I will say nothing more on this than I have articulated already.”When asked why Government had not ordered Digicel to cease and desist if it was not complying with policy, the Ministry said: “The Government has been and continues, through its telecommunications regulatory responsibilities, to address this matter directly with Digicel.“Now that the matter is before the Courts, it would not be appropriate for us to comment further.”Digicel this week insisted its new long distance service was lawful and said it planned to continue offering it despite doubts cast by Government and other Telecoms providers.“We will continue to provide this lawful service,” CEO of Digicel Bermuda Wayne Caines said Tuesday. “We would like to clarify that this VoIP long distance service provided by Transact is essentially the same as that provided by North Rock Communications and Logic, which is currently available to mobile users of both Digicel and CellOne.”However, the service provided by North Rock and Logic is not direct it is available through a prepaid calling card and dialling an access number.Logic or North Rock are also not offered to Digicel and CellOne subscribers when they initially sign up for long distance. Only TBI, LinkBermuda and now Digicel/Transact are offered as long distance plans.