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TBI calls on Govt to act as Digicel relaunches long distance service

Digicel: Relaunched long distance service (Photo by Akil Simmons)

TBI yesterday called on Government to take action against Digicel after it relaunched its controversial long distance service.“The lifting of the injunction clearly put the onus on the Government to act,” said TBI president and COO Greg Swan. “Knowing the statutory powers of the relevant Ministries, and knowing the Government’s position in sworn affidavits, I can only expect that the relevant Government Ministries will take the appropriate action accordingly.”In a release put out last night, Government stated: “Following Digicel/Transact’s announcement today that, effective immediately, it has resumed offering, selling, and marketing its International Long Distance (ILD) via Voice over Internet Protocol (VOIP) service, the Government would like to state that it intends to refer the matter of whether this service is in compliance with the terms of the licences provided to Telecommunication (Bermuda and West Indies) Ltd (TBWL) and Transact Ltd to the Telecommunications Commission, pursuant to Section 16 of the Telecommunications Act 1986.”It was not clear whether this would have any impact on the Digicel long distance service.“Additionally, Government will soon initiate a consultation period with industry stakeholders regarding a change in policy for the provision of international long distance service,” Government’s statement added.In affidavits, Government officials have stated that the Digicel-branded long distance service, offered through sister company Transact, is not lawful, in their opinion.However, Digicel announced in a statement yesterday: “Digicel and Transact shall immediately recommence the marketing, promotion and sales of its international long distance (ILD) over VoIP offerings to all consumers in Bermuda effective 1pm.“This announcement follows the decision of the Supreme Court of Bermuda last Thursday in which the Chief Justice discharged Digicel and Transact from all undertakings provided to the court in respect of the long distance services being offered by Digicel and Transact.“This decision paved the way for Digicel to recommence offering international long distance through VoIP. Digicel had previously launched this service, but was compelled to suspend promotion and marketing on October 27. This suspension of service has now ended.”Digicel last week had said it would hold off on recommencing the service until it met with Government officials.It’s not clear whether the company did meet with Government as planned.After siding with an application by CellOne last week and ruling the dispute ought to be dealt with by the Telecommunications Commission and not the court, Chief Justice Richard Ground agreed Digicel was free to offer the service again.Digicel originally went to court to get CellOne to provide interconnection for its long distance service.Government then was joined with long distance provider TBI in objecting to Digicel’s launch of a long distance service.TBI’s Mr Swan said yesterday: “The Chief Justice clearly indicated that the appropriate statutory body to address the issue of whether Digicel/Transact’s offering of direct dial long distance is legal resides with the Telecommunications Commission. The court did not rule in favour of Digicel/Transact as there was no trial.”He added: “Our position remains the same, the offering of direct dial long distance by Digicel/Transact falls outside of the scope of one or both of their operating licences. The Telecommunications Act, the associated regulations and Ministerial directives were put in place to govern the telecommunications sector and regulatory reform was put in place to enable an orderly transition as the market is opened more fully.”ISP North Rock has also gotten involved in the dispute, sending a letter to the Attorney General calling on Government to declare Transact in breach of its licence, which would effectively stop it from carrying on business.

TBI