CableVision is now free to drop channels 7 and 9 following a ruling from Chief Justice Richard Ground.

The entertainment service provider yesterday said it will continue to carry both channels for the time being while it ponders its next move.

In a Supreme Court judgment yesterday morning, Mr. Justice Ground said Bermuda's legislations allow CableVision to choose not to carry ZBM in certain circumstances.

The judicial review took place late last year after the Department of Telecommunications claimed CableVision needed permission from the Commission to drop the Bermuda Broadcasting Company channels whose programmes include ZBM news and The Young And The Restless.

Finding in favour of CableVision, Mr. Justice Ground said in his judgment:"If CableVision has properly and effectively exercised its choice under regulation 12 not to carry ZBM, then no further permission is required from the Commission under section 21(1)(i) or under sections 23 and 24 of the (Telecommunications) Act, and the Commission has no power under 24(1)(d) to forbid or disallow this course.

"This is because individual channels do not each amount to a separate telecommunications service so that channels can be abandoned without it amounting to a failure to maintain an existing service or constituting what remains as a new service.

"I cannot, and not no purport to decide on this application whether or not CableVision has effectively exercised its choice not to carry ZBM. Nor do I decide whether its licence still requires it to carry ZBM."

A row erupted between CableVision and BBC late last year following new legislation which meant it could no longer carry local broadcast channels for free.

Last November, CableVision announced it would drop the channels because of the newly imposed fee, which it said it would have to pass on to its customers.

CableVision general manager Terry Roberson said in a statement following yesterday's judgment: "Bermuda CableVision is pleased with today's ruling from the Chief Justice of Bermuda that CableVision does not need the Telecommunication Commission's consent in order to drop channels 7 and 9 and that Government must pay CableVision's legal costs.

"The background to this case was the decision last year by the Bermuda Broadcasting Company to insist that CableVision and its customers pay a fee for carrying channels 7 and 9 even though these channels were free for customers using antennae. CableVision refused to accept this demand and accordingly informed the Bermuda Broadcasting Company that it would not carry channels 7 and 9 on such a basis.

"To CableVision's surprise the Department of Telecommunications then issued a press statement on December 3, 2008 that CableVision would be breaking the law if it dropped channels 7 and 9.

"The Chief Justice today ruled that the Department's interpretation of the law was wrong and that CableVision does not need their permission to drop channels 7 and 9.

"CableVision is considering how to proceed in light of this ruling and will of course keep its customers fully informed. For the time being, CableVision will continue to carry channels 7 and 9."

Bill Craig, BBC's CEO, declined to comment at length, saying the case was between the Department and CableVision, but said:"If they are silly enough to try to take us off, it's unfortunate for their customers."