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Telecoms Commission finds Digicel and Transact in breach of licences

Decision: The Telecoms Commission found that Digicel and Transact were not in compliance with their licences in offering a long-distance service

The Telecoms Commission has advised Government that it has found Digicel and Transact are not in compliance with their licences.But Minister of Environment, Planning and Infrastructure Strategy Marc Bean has told the Commission that before he makes any decision in the case he needs more information on how it reached its findings.The Minister is under no obligation to take the advice of the Commission. In any event, Digicel has indicated it will likely seek a ruling from the courts in the dispute.The Royal Gazette obtained a copy of the Commission’s written findings and the Minister’s response last night.The Commission was asked back in December to look into whether the international long distance service that Digicel and sister company Transact launched was in compliance with the terms and conditions of their licences.Chaired by Ronald Simmons, the Commission said that having considered written and oral submissions, it “finds that the actions of Digicel and Transact are not in compliance with the respective licences they currently hold”.The Commission said: “Specifically: No interconnection agreement between Digicel and Transact has been approved by the Commission as required. Therefore, no traffic can legally be shared between the two companies.“Transact is accepting traffic from a Class B carrier, which is in contravention of Condition 3 of its licence.“Digicel is required by its licence to pass its International Long Distance voice traffic directly to a Class A carrier.“The evidence shows that Digicel is passing its International Long Distance voice traffic to a Class C Carrier, which is in contravention of Condition 4 of its licence. The Commission notes that historically Digicel has followed this condition, demonstrating that it was aware of the terms of its licence.”Minister Bean wrote to the Commission on May 10, that “regrettably, these reports do not position me to evaluate this matter fully as the reports do not set out the reasons for the Commission’s findings ...“In order for me to consider the recommendations of the Commission fully, it is therefore necessary that the Commission, as soon as possible inform me of the basis upon which its findings were made, the evidence relied upon and the facts used to justify its findings.”Mr Bean’s letter was copied to the parties involved in the case, including Digicel, Transact, CellOne, Tbi and North Rock Communications.Even after Mr Bean does render his decision, the dispute could ultimately end up back in Supreme Court.A letter from the Department of Telecommunications to Digicel, obtained by this newspaper last week, appears to confirm in writing that Digicel was given the go-ahead to offer Digicel-branded international long distance under the Transact licence. That apparent blessing by Government was originally received by Digicel in a meeting on September 16, four days before it closed a deal to purchase ISP Transact.Last night Digicel said in response: “We do not accept the findings which are seriously flawed in fact and law and indeed the Commission has addressed matters that were never included in their terms of reference or addressed at any stage of the hearing.“In any event, this matter is before the Supreme Court on 29 May and will be resolved conclusively by the Court.”Earlier this year Digicel told the Gazette: “We invested on foot of a Government decision. The Government cannot pretend this never happened. They have never denied this meeting or our version of what happened either.“The only forum that can rule on any issue of public law (which legitimate expectation is) is the Courts of the land. The Commission cannot adjudicate on such a claim. It does not have jurisdiction to this end. This is one of the reasons why we say the Commission simply cannot determine the dispute.”