Digicel: “Government Has Acted Appallingly”
Digicel released a statement this afternoon [June 7] saying they believe that the Government has “acted appallingly” and has “victimised Digicel by rescinding the approvals granted.”
Digicel said they received a letter from the Bermuda Government formally approving Transact’s provision of international long distance in October 2011, however since then members of the Government’s Department of Telecommunications have “attempted to perform a dramatic U-turn on its decision.”
Digicel said over the past nine months they have “incurred enormous reputational damage locally and internationally by being portrayed as a law-breaking company that provides services without a licence,”and have spent, and continues to spend, “huge sums of money on legal proceedings trying to vindicate its position.”
“These Government officials have refused to publicly acknowledge their blatant wrongdoing and refused to take responsibility for the damage inflicted on Digicel. These officials seem to believe that Digicel will allow itself to be bullied into submission,” said Digicel’s statement.
“It is Digicel’s belief that the Government has acted appallingly and has victimised Digicel by rescinding the approvals granted and filing false Affidavits in Court designed to damage Digicel – despite the fact that the price of international calls has plummeted since Digicel shook up the market by introducing ILD.
“Furthermore, it is also Digicel’s belief that the activities of certain officials will greatly damage Bermuda’s reputation as a place to invest and do business. This is the behaviour of countries administered by oppressive Governments – and not what one would expect in an ostensibly sophisticated business environment such as Bermuda.
“As such, Digicel fully intends to pursue justice by whatever and all means possible in order to vindicate its reputation and seek retribution for the damage done to it so far.”
The full statement from Digicel is below:
Digicel is seeking to inform its customers, the media, and the public at large of the appalling way in which it has been treated by members of the Government and Civil Service – in particular by individuals working for the Bermuda Department of Telecommunications over the past nine months – since its legitimate and Government-approved purchase of Transact.
Since October 2011, Digicel has been the subject of numerous falsehoods and inaccuracies at the hands of the Government through a series of affidavits filed by its members and maliciously leaked to the media – and as such, it wishes to clarify and vindicate its position with regards to the same.
In September of last year, the Government of Bermuda expressly approved Digicel’s purchase of Transact – in the full knowledge of Digicel’s reasons for the purchase – which was to allow Digicel to provide International Long Distance (ILD) services through Transact’s Class C internet licence – thus introducing real competition into the international calling market for the first time in Bermuda.
As the telecoms consumer champion, Digicel is motivated to provide ILD services for the benefit of Bermudian consumers and businesses. In fact, since Digicel’s launch of ILD, international call costs have dropped a whopping 66%.
It is critical to note that, throughout all its discussions with Government, Digicel was completely upfront regarding its reasons for purchase and its ILD plans with respect to Transact.Digicel has numerous pieces of correspondence between it and the Government recording the same.
In fact, on October 20th 2011, Digicel received a letter from the Bermuda Government formally and expressly approving Transact’s provision of ILD using VoIP technology.
However, since then, members of the Government’s Department of Telecommunications have attempted to perform a dramatic U-turn on its decision to allow Digicel to provide ILD services to Bermudians across the island.
Furthermore, these members of the Department of Telecommunications essentially blocked an injunction which was granted to Digicel by Mr. Justice Kawaley forcing CellOne to allow interconnection with Transact for the provision of ILD services – effectively stunting real competition in the market.
In addition to interfering with Mr. Justice Kawaley’s decision and resiling from its prior approval of the Transact ILD service, these same members of the Government filed a series of affidavits which aimed to undermine Digicel’s reputation as one of the leading corporate entities in Bermuda delivering best service, best value and best network since its launch six years ago.
Over the past nine months, Digicel has incurred enormous reputational damage locally and internationally by being portrayed as a law-breaking company that provides services without a licence. It has spent (and continues to spend) huge sums of money on legal proceedings trying to vindicate its position.
These Government officials have refused to publicly acknowledge their blatant wrongdoing and refused to take responsibility for the damage inflicted on Digicel. These officials seem to believe that Digicel will allow itself to be bullied into submission.
It is Digicel’s belief that the Government has acted appallingly and has victimised Digicel by rescinding the approvals granted and filing false Affidavits in Court designed to damage Digicel – despite the fact that the price of international calls has plummeted since Digicel shook up the market by introducing ILD.
This blatant discrimination against Digicel in favour of other operators in the market has extended into other critical areas of Digicel’s business and includes the creation of a gross imbalance in spectrum allocations between Digicel and its direct competitors – an imbalance which the Department of Telecommunications has refused to address over a six year period.
The Department has also allowed other operators to act well outside the scope of their licences with impunity. It appears that the Department sees its role now in terms of inflicting damage on Digicel at all costs.
Furthermore, it is also Digicel’s belief that the activities of certain officials will greatly damage Bermuda’s reputation as a place to invest and do business.
This is the behaviour of countries administered by oppressive Governments – and not what one would expect in an ostensibly sophisticated business environment such as Bermuda.
As such, Digicel fully intends to pursue justice by whatever and all means possible in order to vindicate its reputation and seek retribution for the damage done to it so far.
Digicel is also committed to fulfilling its plans to use its licence with Transact to deliver the best value, best service and best network to its customers across Bermuda.
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This is about time. We need to put a stop to our Government and their poor judgements which are affecting the people of Bermuda. we are supposed to be a progressive nation and a leader in our part of the world. If what Digicel is saying the govt did is true, then they need to rectify it.
what a bunch of nonsense….Digicel knew they were buying a ISP that is only allowed to offer LD to fixed line customers. They hoodwinked a bunch of fuzzy headed civil servants into allowing Digicell to offer LD to mobile customers. Now that the other carriers are disadvantaged, why doesn’t Marc Bean just ‘free up the carriers’ and allow them to do whatever they want. Marc just flatten the licenses and allow the carriers to do their thing…..and the strong survive, the weak die
What about when/if Digicel does/did something illegal and acted appalling to any of its customers are they willing to compensate for their actions if the answer is yes continue your fight if the answer is no accept it and dont throw stones if you live in a glass house
Well in my experience Digicel has always acted lawfully with any issue i had with them. I believe fair is fair. If the govt knew why digicel wanted to buy transactt then they should stand by their word and allow them to carry out their business.
So you think that Digicel charging customers $2.00 for the “priviledge” of sending them a bill each month is okay. They say it because it costs them $2.00 to process and mail the bills. Every company in the world have those costs built into their costs. The right thing to do would have been to DISCOUNT people bills by $2if they agreed to be switched to email billing. Instead they chose to penalize their customers by adding onto the bill. Not sure if this would be legal anywhere else in the world.
Or how about the voicemail I got a few weeks ago to say that my unlimited DATA package is no longer valid and I would have to contact them about a new data plan. How can they just cancel my plan and change the rules.
Or how about the huge ugly OVERSIZED signs that they have plastered around so many of Bermudas businesses, I believe a few of them have letters that are larger than what planning guidelines allow.
Or how about the 20 page bill that I cant understand that I get each month. I can’t question a charge on the bill that I cant understand. How do you have a bill that shows that I have “rollover minutes” that don’t rollover.
I would have switched carriers years ago if government would force these companies to allow individuals to take their numbers with them if they move carriers. I cant hold out hope much longer
FYI companies charge for paper billing all over North America. It’s becoming common practice to punish those who continue to waste. Switching to e-billing save a lot of paper and it’s free.
Today’s appointment of Walter Roban shows the lack of depth in Government that has led to this Digicel matter, as always ego over substance watch this one and how Govt will have to pay the costs of all the telecoms providers for these lawsuits
what an appalling mess this country is in time for a change enough is enough!
Exactly who was it who owned Transact? I would think it would have been worth a whole lot less if it was clear that it could not be used as desired by Digicel. Follow the money anyone?
Last week a team of Digicel employees were at my sons school making him breakfast.No hidden advertising meassage and my kid felt special.Why does our guverment still make these great people feel unwanted.
Surprise, surprise! Did you expect this government to not act appallingly? Digicel may have its flaws, but I bet they’d be better at running Bermuda than our current government!
Mr Caines – maybe you shud tell your billing staff to slip a note in each of your customers monthly bills simply saying “VOTE OBA”
hahahhaahahah loving it.
Hmmmmmm, as an employee of another telecoms provider, I can say this much…….digicel is acting the way they have previously acted in other jurisdictions. My boss mentioned today that he is surprised that Digicel is waging a media war against the Government, who, in our opinion, has acted for the benefit of ALL industry players and the public. They have been fair, but Digicel is spreading falsehoods via the media, and I think, in an attempt to play victim. And the language re oppressive governments is very irresponsible and harmful to Bermuda, but it seems as if Digicel will go to such lengths to defend themselves, against their self-inflicted misery. In other words, there is more to this then what they are claiming. I know that they might think so, but This is not a Digicel world. My company is ready to compete, but as the government insist, this must be done fairly. In a nut shell, Digicel is attacking the government because the government refuses to facilitate Digicels predatory behaviour.
Wow,driving savings to the end user and saving every consumer of all carriers money is “predatory”?
Bring it on “employee of another telecoms provier” show us what you can do.
Oh,you are selling lond distance too,and without a licence!
What does your boss tell you about that.
are the class 4 insurers who bring work permit holders here treated this way? dont understand PLP, if these guys pull the plug who will employ the Bermudians working there? oh i forgot Casinos are coming
You should ask digicel how many bermudians they employ and for how long. they aren’t the saviours they make themselves out to be.
What are you talking about?
Would you like to see the Bermudians unemployed because this business is driven out of Bermuda.
What difference does it make if there is 1 or 101,they have been jerked around by an bunch of amateur politicians.
If digicel was to copyright their statment, “Government has acted appallingly” I think the royalties from the use of this statement over the next few months would more than offset the monies they are attempting to recoup!
@ Concerned Citizen:
How can you accept your bosses statement that the Government is acting in the interest of all telecommunication companies?
When the Gov gives approval and then changes their mind, how does that help ANY business or industry to have confidence in Bermuda?
When the Gov can not organise themselves to see through a standard purchase of a company (Transact) how does this help the industry?
When Gov turns a blind eye to other carriers and only picks on one (Digicel) how is that actig in the best interest?
I say form your own opinion. Your boss likely means to say, “as long as Government is protecting my interests, then who gives a hoot?” You should ask your self as a citizen and not as an employee in the industry if this is a good thing or not.
Did anyone stop and realise Cellone is doing the exact same thing now (long distance) and never had their license changed? Why should Digicel have to pay millions to buy Transact in attempts to follow the law and license system when others can just do what they want? Look at TBI? they don’t have a license to offer residential internet and they are now offering wifi all over the island. Blatant diregard of the law, and what is Gov doing? NOTHING! So Digicel is left with huge bills, paying taxes to a Gov that does nothing in turn to properly regulate the industry and is so disorganised and clueless on what to do with this whole mess. Oh sorry, they do have a plan: stick their head in the sand and hope it goes away.
Why is Gov up in arms over Digicel buying Transact and then using Transact to provide long distance services? Even after the Gov approved the transaction!
Why is noone complaining that Keytech owns BTC, part of Cellone, part of cablevision, etc? So many questions, such a mess, Gov has lost control and thats why people like you are confused and have to follow opinions of others, your boss in this case.
In a nutshell:
(1) A key government department asleep at the wheel
(2) A preditory company taking advantage of inside influences and informatio
(3) A struggling company that finally gets snapped up and owners get $$$$$$$
(4) Items 123 lead to all out anarchy with carriers doing whatever they want
Woah!! Quite a few inaccuracies here.
The Telecoms Ministry allowed the service. It doesn’t take a rocket scientist, (maybe and telecoms engineer), to read the regulations and figure out it was contrary to either companies license. And even the letter provided by the acting director also says VOIP only. After the service was launched it was challenged in court. The courts referred the case back to the Telecoms commission. Who ruled, correctly, that the service is contrary to Transact and Digicel’s license and it was not using VOIP.
The WIFI service that is being provided by TBI has been challenged as well. Is not a residential service and is provided in conjunction with other businesses for their customers.
Cellone are not doing the exact same thing. Their long distance is provided through an “A” licensed carrier (Cable Co).
Look at the players my friend know their history and associations. Digicel has used political favor to get what they want and it was exposed in Supreme Court as contrary to their license. Plain and simple. I would suggest Digicel knew the issues and thought that through Govt “connections” they could get a away with it.
Technology has outgrown the licensing structure and reform has been tabled in the house.
I hope the Gubmint sends this case to binding arbitration, screw the courts.
Clearly the government is trying to make flip-flopping our national sport. How many times in the past year alone have we seen members of this government announce something, only to flip-flop and reverse their position days later? How many times in this past year alone have we seen members of this government be rotated around ministries once we discover that they are not cut out for the job? This case is just one of many instances when the government has said something and then gone back on its word. Flip-flop.
This issue is about more than telecommunications, or Digicel, or long distance… it’s about our ability to trust in our government’s promises and to hold them to their word.
Wow Digicel! My hat is off to you! Please take a bow for taking such a bold stand against Government in this regard. I agree, the position you’ve been put in is appalling and it’s sad to see that my Government can’t seem to get it together. It’s unfortunate that I find it hard to narrow the incompetence down to the Department of Telecommunications, as it seems that most Government departments do not adhere to any form of policy and procedure.
“Um Um” said it right. Digicel would be better running Bermuda than those in power now so “Nigel Spider aka Cancer” I say, “VOTE DIGICEL.”
Our telecommunications industry is a mess. Digicel has shaken up an industry in Bermuda that sits in the wake of the rest of the world. I look forward to seeing the results of this battle in hope that Bermudians receive better telecommunications rates and services.