CellOne Applauds Government Legal Move
[Updated] CellOne said today [Oct. 21] it applauds the Ministry of Environment, Planning & Infrastructure’s decision to begin a Supreme Court action opposing Digicel-Transact’s recent application for an injunction mandating the provision of long distance interconnection to CellOne customers.
The company views the Ministry’s decision to ask the Attorney-General’s Chamber to file their intention to appear in opposition to Digicel-Transact to mean the recent Court Order requiring that interconnection be provided after seven days will not take effect until further Order of the Supreme Court.
“Although the issue is not yet fully resolved as it subject to a future hearing it does point to the Ministers of Government agreeing with CellOne’s stated position on the issue, namely, that a Class ‘C’ ISP such as Transact cannot offer long distance service to mobile subscribers,” said a CellOne spokesman.
“This indeed confirms that the rules of the game have not changed,” said Frank Amaral Chief Operating Officer for CellOne. “At CellOne we continue to support regulatory reform and look forward to offering more services to our customers.
“This specific situation has been about operating within the confines of the regulations and maintaining a level playing field. “We applaud the Bermuda Government for coming out and stating that it wishes to be heard in these proceedings in opposition to Digicel.”
Update 8.51pm: Statement from Government:
Government applies to be heard in Telecommunications dispute
Government announced today that it has notified the Court that it wishes to be heard in the ongoing legal dispute between local telecommunications providers. Justice Ian Kawaley who is hearing the matter between Telecommunications (Bermuda & West Indies) Ltd.; (TBWIL) trading as Digicel and Transact Limited versus Bermuda Digital Communications Limited (trading as CellOne), invited the Government to apply to be heard in opposition in response to the Court’s recent decision regarding Digicel’s application for ex parte relief. Justice Kawaley invited the Minister of Business Development and Tourism and/or the Minister of Environment, Planning and Infrastructure Strategy to apply to be heard.
TBWIL has a Class B Telecommunications Licence, authorizing it to provide wireless voice services. Transact, with a Class C Telecommunications Licence, is authorized to provide internet services. Digicel has begun the process of providing long distance service following its recent acquisition of Transact Limited. This move has caused consternation within the telecommunications industry, with carriers seeking relief and clarification from the Courts. The Government re-iterates its position that it has not changed its policies regarding telecommunications licences. Its position remains that companies holding more than one licence must operate those licences separately.”
In making the announcement today, Government also reminded the public that given the rapid pace of technological development and the imminent reform of the telecommunications laws, the outcome of the litigation will be of tremendous importance for the future of Bermuda and goes well beyond the immediate commercial disputes, to which Government is not presently a party.
Update 8.53pm: Statement from Digicel
From the first day that Digicel entered the Bermuda market, we committed to deliver best value, best service and the best network to our customers. We remain committed to these principles. Digicel’s acquisition of Transact will see customers benefiting from better value and when possible, higher speeds for their internet services. Already, Transact’s entrance into the long distance market has seen increased competition working to benefit consumers with Link Bermuda announcing today that they have dropped their long distance rates.
The acquiring of Transact Limited was an entirely legal acquisition in which Digicel followed all of the correct legal and regulatory steps to complete this corporate transaction.
We look forward to the next steps in the legal process that we hope will enable Transact to move forward with our plans to provide affordable and competitive long distance rates to all of Bermuda.
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judges says yes
govt say no
lets see who blinks first
Only in Bermuda (and a smattering of other backwards places) is there actual legislation to prevent society from moving into the modern era, by providing products & services that benefit the customer. OK we need jobs, but at the expense of progress…!?! Does that make sense? Why do we need multiple companies doing what one could do so much better? Answer: To pay more than the same service would otherwise be available for! What a joke! This is like entering a NASCAR race and being told you cant shift higher than 2nd gear! Result: We will lose the race!
I really wonder if you understand what the Law is? It is clear when you get several cellular companies speaking out about it, that it is unfair what is going on! Now if you were an onwer or employee of one of these companies you would speak out too! And stop with this ‘ONLY IN BERMUDA’! There are many examples of this in other places! Just look at the bill presented on US base companies in Bermuda before the Houses in the States!
just let the deal go through. the companies againest this just need to step their game up.
Before us is an Epic battle of unbridled greed displayed by all parties involved .
This Minister with Responsibility for Telecoms keeps saying the Telecoms Licence Scheme has not changed. What rubbish !
1) The Introduction of CELEA (this allows police and other to monitor and calls) A CHANGE
2) M3 and Cellular One Merge into one company (one Company (CELLONE now holds a 2 Class B licenses) A Change
3) Northrock holds class C Licence (Long Distance and ISP) yet they are rolling out a Mobile phone net work A CHANGE
The Telecommunications Act was written in 1986, this was before the advent of the internet. The world has advanced so much since then. The Department of Telecoms struggles to remain up to date.
The Department and Minister promised the new Legislation would be inacted 2 yrs ago. Do they expect industry to stand still and wait ?
Long distance is now dominated by Magic Jack, Vonage and Skype. None of the afore-mentioned is provisioned for under our current legislation and two of the 3 afore-mentioned is illegally being used in Bermuda with the Dept powerless to regulate or stop the use of them (Vonage/Magic Jack
Instead of the Minister saying that he has to hasten regulatory reform and that will become his main priority. He now backtracks and supports cellone, this after giving Digicel a licence.
What double talk, didn’t this man not authorize the biggest telecoms merger in our Country’s telecoms history (m3 and cellularone) !
We have a healthy market and in the absence of the Ministry regulating the Market, it is regulating itself ! These companies (Digicel Irish owned) Cellone (ATN US owned) want to maximize on profits and they are only in Bermuda for that purpose. International Companies will think twice about investing in Bermuda if we do not have a properly regulated Telecoms market.
Minister gives a licence (has all the facts and grants the licence) faces opposition from the competitors with reference to the licence, so he asks for a “do over” and says that he does not agree with his own decision (granting the licence).
I am an outsider looking in, so I could have this wrong.. I look forward to observing the court proceedings. Clearly this is going to be an interesting saga.
The new merged company named as CellOne is now majority owned by Bermudians, but it has an affiliation with a US shareholder known as ATN, the merger resulted in ATN becoming a minority shareholder.
We all know that this country is run by idiots who speak out of both sides of their mouths. Let them (Digicel) have it competition is good for the consumer. Especially when the service is already way overpriced.
The RG has already provided considerable facts when they published the names of the senior civil servants in the Ministry of Telecommunications. It would appear from their list that the Acting Director/Senior Legal Counsel as a matter of public knowledge is the spouse of the Digicel CEO. That may go along way in explaining why Digicel appears self-assured that they followed all of the correct legal and regulatory steps.
Digicel may have inadvertently shot itself in the foot by filing their ex parte application as all the facts surrounding the regulatory approval of the Transact acquisition will now come to light.
Cellone 1
Digicel 0