Court order to halt long distance service hurts Digicel

The Bermuda Supreme Court, late last week, ordered Jamaica based telecommunications company, Digicel to cease providing Bermudeans access to its internet-based long-distance service.

This is as a result of legal proceedings initiated by TeleBermuda International (TBI) on October 17, against Digicel to stop it offering its new long distance service.

It has not been ruled that Digicel was in breach of contract.

Rival telecommunications companies have accused Digicel of circumventing the government’s liberalization agenda and complained that Digicel was being given an unfair head start in terms of positioning itself ahead of its rivals before the expected liberalization of the industry, which is expected to begin November when the necessary legislative package of telecommunications regulatory reform is tabled by government.

The Attorney General’s office clarified pointed out that Digicel had a Class B Telecommunications Licence, authorizing it to provide wireless voice services; Transact, with a Class C Telecommunications Licence, was authorized to provide Internet services; but following its recent acquisition of Transact, Digicel had blurred the lines by beginning the process of providing long distance service.

The management of Digicel Bermuda have indicated that following the Court’s decision, that once all the facts of the case are fully presented before the Court that it will be evident that Digicel and Transact are operating within the law and the boundaries of their respective licenses.