A war of words has broken out between telecoms firms Digicel and Logic over a free internet promotion.

In a letter leaked to The Royal Gazette, Logic boss Vicki Coelho told the Regulatory Authority that rival Digicel’s free internet for a year offer to all new, or recent, postpaid subscribers to mobile voice and data services was “predatory and anti-competitive.”

She accused Digicel of using its financial muscle from its mobile services to pay for a promotion that other firms were unable to compete with.

And she called on the Regulatory Authority to pull the plug on the offer pending the launch an investigation into the Digicel offer “with a view to initiating enforcement action if necessary.” But Digicel boss Wayne Caines hit back: “Logic’s assertion is that Digicel’s offer is predatory and anti-competitive and Digicel totally disagrees with this assertion.”

And he said: “Our competitors are free to to make a similar offer available.”

And Mr Caines added: “We find it incredible that KeyTech, which is the parent company for five companies in Bermuda and is affiliated with three other Bermuda companies, all of which operate in the telecommunications sector, would accuse Digicel of predatory and anti-competitive behaviour, especially considering that KeyTech has control over so much of the telecommunication services available in this small market.”

Mr Caines added that — before Digicel entered the internet market — Logic and telecoms firn Northrock were charging nearly $120 a month for a six MBps service.

But he said that Digicel’s entry into the business meant it could provide the same speed of service for $50 a month.

Mr Caines added: “Furthermore, our current promotion provides customers an effective rate of just $25 a month over two years for six MBps home internet service.

“Digicel is proud to have brought this value to Bermuda and makes no apologies for it.”

And he said: “We believe that consumers should not be prevented from availing themselves of our free internet promotion.

“Consumers should have freedom of choice and this freedom should not be interfered with by KeyTech.

Mr Caines added that the Digicel promotion, which means customers who sign up for postpaid voice and data services worth $100 or more per month can opt for a free 12 month home internet service, was “simple and fair.”

He said: “KeyTech already controls over eight telecommunications providers in Bermuda and they have no right to dictate our business activities as well.

“It is not our desire to enter into litigation with any entity. Digicel will gladly cooperate with the Regulatory Authority.”

And he pledged: “We will do what is necessary to defend our promotion that serves the sole purpose of providing greater value for Bermuda customers.

“We stood for value in 2005 when we first introduced more affordable home internet services. We will continue to stand for value for our customers so that all of Bermuda can benefit.”