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Minister: Digicel ‘jumped the gun and has attempted to gain a head start’

Post-Budget Press Conference: Marc Bean, Minister of Environment Planning and Infrastructure Strategy MP. (Photo by Akil Simmons) February 24, 2012

Government yesterday slammed Digicel Bermuda for making “harmful” and “dangerous” allegations in the media as the battle over international long distance descended into an all-out war of words.Minister of Environment, Planning and Infrastructure Strategy Marc Bean took to the floor of the House of Assembly in the morning to assail the cell phone provider.Hours after Mr Bean’s statement, Digicel came back, accusing Government members of acting “with a bizarre and troubling inconsistency” .“Following the acerbic statement by (Minister Bean) — delivered under the protection of Parliamentary Privilege — Digicel wishes to restate the simple and inarguable fact that it received express approval from the Government to purchase Transact for the purpose of selling ILD services,” Digicel said.“This same Government is now defaulting on its express approval and is pretending as if this approval never happened.“This — coupled with the numerous legal challenges and maliciously leaked documents — has had a severe negative impact on Digicel/Transact and therefore Bermudian customers and businesses.”However, Mr Bean charged that it was the Government’s view that Digicel “jumped the gun and has attempted to gain a head start on other competitors” by launching ILD.“I would not normally wish to utilise the privilege of a Ministerial Statement to respond to the actions of a local business,” Mr Bean said. “But in this instance, I believe the nature of the allegations made by Digicel require such a response.“You would be aware that the Government is engaged in a dispute with Digicel over its provision of International Long Distance services.“This dispute involves other local telecommunications providers and is currently before the Courts. It is not uncommon for businesses to have disputes. Nor is it uncommon for regulated entities to have disputes with the regulator.“Normally, such disputes are settled between the parties, or failing that, are settled through our court system.“Therefore, you might imagine my surprise and dismay to note that Digicel is seeking to try this matter in the court of public opinion, rather than allow the courts of justice to determine the outcome of our dispute.“Mr. Speaker, although I do not wish to follow along the same sad path as Digicel and attempt to usurp the dignity of our Courts, I am obliged to set the record straight, as the personal and dangerous allegations and statements of Digicel cannot be allowed to stand without a response.”Mr Bean continued: “Under the powers vested in me under the existing Telecommunications Act 1986 I referred the matter to the Telecommunications Commission and asked them to enquire as to whether or not Digicel’s provision of ILD was within the scope of their licences.“I have recently received the report and rationale from the Commission and have invited Digicel and other carriers to comment upon their findings before I determine if I will accept the findings or not.“The deadline for responses is 18th June. After considering the responses and the report, I will then decide the action that I will take, if any.“Digicel have challenged every effort to determine the validity of their actions. And in so doing, have sought to cast everyone who dares to question their actions as bullies, as having a vendetta against them, as being unfair to them.“Mr. Speaker, some could be forgiven for coming to a conclusion that Digicel appears to cast others in a manner that perhaps best describes themselves!“The proper place for this matter to be determined is, in the first instance, the Telecommunications Commission. Certainly, if a party perceives themselves to be aggrieved by decisions taken based on the Commission’s findings, they can seek redress through the Courts.“Following Mr Bean’s statement, Digicel said it felt it necessary to publicly share a letter, dated October 20th 2011, issued to it by the Government, which it said “expressly records and confirms the approval granted to Digicel to provide ILD services over VOIP using Transact’s class C license”.“This letter is irrefutable evidence supporting Digicel’s view that it is being treated unfairly,” Digicel said.“This is why Digicel has ‘sought to cast doubt’ on the decisions of the Government which, on the one hand, approved the acquisition of Transact for the purpose of selling ILD services, and on the other hand, has sought to now block the provision of such ILD services.“Digicel would like to ask why did the Minister completely sidestep and ignore this issue in his statement this morning — the issue at the very crux of Digicel’s case.“By giving Digicel express Government permission and then challenging its own approval, Digicel believes members of this Government are acting with a bizarre and troubling inconsistency.“Digicel has no issue with a legal challenge, but when such a challenge is based on inaccuracies and misinformation, Digicel has a right to defend itself and has an obligation to defend its customers.“Over the last 12 years, Digicel has built a reputation across every market in which it operates as being a champion of competition and the consumer, and it does not apologise for taking a position contrary to the Bermuda Government in order to defend this hard-earned reputation.”Digicel concluded it statement: “The question, Minister, is simply this — did the Government approve Digicel/Transact’s ILD service? Your letter says you did.”