Digicel Prevails In Supreme Court

October 19, 2011

Bermuda’s Supreme Court has ruled in favour of Digicel in response to allegations that the mobile network is illegally offering long distance services.

Digicel says that it was totally successful in defending the right of Transact to offer a long distance telephone service to customers in Bermuda in competition with TBI and LinkBermuda.

The Supreme Court accepted that Digicel was entitled to market this service under the Digicel brand name.

A TBI injunction against Digicel — which would have prevented Digicel from carrying long distance traffic to Digicel Bermuda customers — has failed. Digicel argued the the application “was wholly misconceived and constituted an abuse of process.”

After the judgment was given, a separate application was been made by Digicel/Transact for an injunction compelling CellOne to provide its customers with interconnection to the Digicel network so that Cellone customers may subscribe for the Digicel/Transact service.

This application was successful and within a week, CellOne must start the process of interconnection unless the relevant Ministers apply to the Court objecting.

Digicel believes there is no basis for any objection from Government because it has done nothing wrong.

Puisne Judge Ian Kawaley said in his ruling: “The evidence presently before the Court suggests that the Plaintiffs have acted with due propriety and sought and obtained the necessary regulatory consents to introduce a lucrative new service which has provoked their competitors’ ire.”

Digicel said they are “pleased to be able to provide an alternative choice to the residents of Bermuda for their telecommunications needs and believes the increased competition will only serve to benefit consumers. With regard to the newly launched Digicel Long Distance service, this service is currently only offered to Digicel customers but plans are well underway to make the service available for all residents in the very near future.”

In the wake of the ruling, Digicel’s competitors have asked Government to clarify its position on long distance phone providers.

North Rock, TBI, CellOne and Logic who all said they would be bound by the Supreme Court decision.

But at a press conference following the ruling, representatives of the firms asked Telecommunications Minister Walter Roban to confirm whether or not Digicel’s license allows the company to legally offer long distance service.

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