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Webb losing faith in FCC

Strong lobbying by rogue communications company GlobalTel has Telecommunications Minister Renee Webb pessimistic about Bermuda's complaint against it currently before the US Federal Communications Commission (FCC).

No decision is expected on the matter from the FCC until next month, Minister Webb told The Royal Gazette.

But the American governing body has been heavily lobbied by GlobalTel and as a result, Ms Webb said she was less hopeful about the case's outcome than she had been when the Government originally approached the American licensing authority.

Call back services were banned by Government last December for operating without a licence, base or employees in Bermuda.

The Minister has estimated that between $3 million and $10 million is drained from the local economy by the call back services every year without benefit to Bermudians.

Ms Webb said she had been hoping to meet with FCC chairman Mike Powell before a decision is made but has been unable to fix a date.

"Ultimately, the FCC is an American body which will act to protect American interests," Ms Webb said.

"The FCC has been lobbied strongly by the American call back companies," she added. "They think it's a global competition issue but we think it's an economic issue because (the services) don't add anything to the economy even though they use local infrastructure.

"They don't provide jobs or pay taxes, so it's a much bigger issue for small countries in terms of how these activities will affect the economy."

Ms Webb said the efforts of the call back companies in the US had shaken her confidence over the decision on Bermuda's FCC complaint.

"It could go either way," she said.

"Initially, I felt very confident. We followed the letter of the instructions the FCC gave us."

Bermuda was told it has to put laws in place in the country and then send a report to the licensing authority.

Government prepared a detailed report of both its action and the actions of the call back company which it forwarded to the FCC in February.

But a decision that was expected in weeks, has yet to surface six months later.

"I feel (the FCC) somewhat reneged on its position," Ms Webb said.

Government went to the FCC after US-based GlobalTel continued to defy local laws despite being raided and having its equipment seized. And the company stepped up its drive for customers despite the Government's stance.

It is believed that two other companies have been operating the cut-rate, call back services in Bermuda but GlobalTel has been the most rebellious in its war with Government.

The Government continues to fight the battle against the call back companies at a local level. In April, hotelier Larry Lamb became the first person charged in court with telecommunications offences associated with operating the services.

He is expected to go to trial next month.

But last week, charges against a second man - Michael Edinholm - were dismissed after the Department of Public Prosecutions failed to file the charges in court within the legal time period.