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Airport TV delay 'cost entrepreneur hundreds of thousands in lost revenue'

A BUSINESS deal enabling Hardell Entertainment to broadcast television programmes at the Bermuda International Airport was stalled for three years and then finally scrapped — because Government said it was not sure if the company needed a licence to provide the service.According to Hardell owner Harold Darrell, the delay cost him hundreds of thousands of dollars in lost revenue — and was also an example of how Government tried to derail the entrepreneur.

The scheme was first launched on a test basis in December 2000. But in March 2001, the Ministry of Telecommunications banned the project, claiming that it was seeking legal advice from the Attorney General to see if Hardell needed a licence to run the service.

In June 2001, Hardell manager Corey Butterfield wrote to then-AG Dame Lois Browne Evans, asking if a decision had been made.

“We are eager to restart our service at the airport and would like to be informed of our position as soon as possible in order to mitigate our losses in revenue to date and begin to make returns on our substantial investment at the airport,” Mr. Butterfield wrote.

No response was received.

In August 2001, Mr. Butterfield wrote to Telecommunications Minister Renée Webb asking for her assistance in getting the matter resolved.

“We have written to the Attorney General’s Chambers and the Ministry of Transport without reply,” Mr. Butterfield wrote.

“The unanswered question of a licence has made us unable to implement the second phase of our service, resulting in a further loss of revenue for Hardell, and by extension, the Government.”

Further, more desperate correspondence to Government Ministries were delivered by hand in February 2002 — almost a year after the question of a licence was first raised.

Transport Minister Ewart Brown did respond, informing the Hardell Group that Government was still waiting to hear the recommendations of the Attorney General.

Then in September 2002, Mr. Butterfield wrote to Ms Webb pointing out that the airport could apply for an exemption order, bypassng the need for a licence. Mr. Butterfield cited the 1999 Telecommunications Exemption Order which exempted the hospital’s internal television distribution system from regular telecommunications rules.

“After discussing the airport system and describing it to both the Permanent Secretary for Transport and the Director of Telecommunications, it appears that, between the Director, the Permanent Secretary and Hardell, we should be able to launch the service in very short course,” Mr. Butterfield said.

The deal was finally approved by the Department of Airport Operations in October 2002, when Hardell was told it could apply to the Telecommunications Ministry for a licence.

However, in March 2003 — two years after the service was meant to be up and running — Government appeared to change its mind, saying that an Exemption Order was the route to go, but that such a request had to originate from the Ministry of Transport.

At this point Government awarded a licence to a rival company owned by Dr. Brown’s cousin, Walton Brown.

Hardell filed a lawsuit against Dr. Brown and Ms Webb for breach of contract and communications between the two parties broke down. A court later ruled that there had been no binding contract between the two parties.

But Mr. Darrell pointed out the fiasco demonstrated how his business interests were hampered by political interference.

“We were totally given the run-around,” he said.

“Over the course of two years that probably cost us about $250,000 and then at the end of it the contract is awarded to the Premier’s cousin.”