Digicel: Long Distance Service “Lawful”

October 26, 2011

Arguing its Voice over Internet Protocol long distance service is “compeletely legal”, Digicel said it intends to continue offering it despite ongoing legal manoeuvres by both Government and rival telecommunications providers.

“Digicel wishes to remind the public that the VoIP long distance service offered by Transact, which is now part of the Digicel Group of Companies, is completely legal. This service was found legal by the Supreme Court, which invited the Government to object within seven days,” said Digicel Bermuda CEO Wayne Caines.

“The Government has notified the Supreme Court that it would like to be heard in the dispute. At this time, the details of the Government’s position remain unknown.

“We will continue to provide this lawful service. We would like to clarify that this VoIP long distance service provided by Transact is essentially the same as that provided by North Rock Communications and Logic, which is currently available to mobile users of both Digicel and CellOne.

“Transact and Digicel welcome competition, as we believe this will allow the customer to receive the best service with the best value. Already, both long distance incumbents have reduced their prices to compete with our long distance prices launched on October 13. The ultimate winner is the customer who, because of the competition that has ensued due to our entrance into the long distance market, is now able to benefit from better prices market wide.

“We sincerely hope the Government will share the same view as the Supreme Court once all the facts have been examined thoroughly.”

Government is expected to make a representation in the Supreme Court tomorrow.

In a statement on the matter last week, a Government spokesman said: “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.”

“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 …”

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Comments (12)

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  1. Motts Apple Sauce says:

    I would never sign up for long distantance with digicell. Every since they took over Transact my DSL line has been dropping more thatn usual.

    • truthseeka says:

      lol….
      Even tho Digicel and has done absolutely nothing to the Transact system yet, I guess this is going to be the general attitude in the near future.

      Maybe its BTC being the rotten apple that your trying to find if your dsl is dropping all of a sudden

  2. WellSaid says:

    Welcome to the wild west and the island of “do as you please”….

  3. Pastor Syl says:

    Looking forward to seeing the outcome of this scenario. Digicel is right – we the customers will be the beneficiaries since it has already been said that we pay the highest prices around.

  4. WellSaid says:

    I’m all for cheaper and faster – as long as it’s not afoul of the telecommunications act. In this case it seems like they’ve decided that they know better than the balance of the players in the market and the minister / regulatory body.

    If nothing else, maybe it will speed up telecom reform.

  5. Sean Soares says:

    Transact is a seperate company with, what I believe is, a license to provide thus service, like Northrock which also provides a LD service and local phone service. I find it hard to believe how Digicel/Transacts offering is illegal. Its a…ctions like this that make buzz words like reform an utter joke. Bermudas telecoms is way behind in terms of service, offerings and price. This is impacting business, large and small. I welcome healthy competition as it benefits the consumers, stimulates economy and keeps Bermuda on the cutting edge. I applaud Digicels move and as an owner of a IT service company support their move.

    • WellSaid says:

      It’s simple – it’s unlawful to bundle service between companies with two distinctly different carrier licenses.

      That’s the same reason for the ridiculous rules that require us to buy our internet access from a separate company than the transport (i.e. BTC / M3Cellone / Cablevision). In everywhere else in the world, you’d be able to go to one company for both – so the regulations are very much still in effect here.

      I doubt that is going to mean anything now that they’ve announced telecom reform – this issue has pressed the point for government to act.

  6. Cedar Beams (Original) says:

    Two words: Magic Jack. Screw all the local long distance thieves who have been robbing us for years.

    • Motts Apple Sauce says:

      +1

    • outkasted says:

      huh…ummm Skype

    • Mike says:

      Or, you can just use Google GMail – Call Phones and plug a $20 headset into your computer. It works perfectly, is FREE to anywhere in North America and costs very little to the rest of the world.

      The only reason you would pay a long distance bill is because you cannot be bothered to figure this out.

    • truthseeka says:

      this is why I wonder what is the hoopla of Digicel offering long distance, if you have so many choices to choose from via internet….
      If you dont want it…….dont sign up