Digicel’s attempt to buy Bermuda Telephone Company has been granted approval by the Island’s regulatory watchdog.

The announcement paves the way for the deal to progress if conditions attached to the written approval, which are yet to be made public, are accepted by the companies.

Robert Watson, the chief executive of the Regulatory Authority of Bermuda (RAB), has acknowledged that some people may have concerns about the emergence of joint dominant players in the telecoms marketplace, particularly as it relates to pricing, but he offered assurance that the authority will keep a close eye on things.

“There will be two dominant players.

“However, we weighed that with the energy and experience of Digicel,” Mr Watson told The Royal Gazette.

He feels Digicel’s experience and track record for innovation is further reason to believe the sector will see competitor companies staying on their toes to provide the best services and pricing.

“We will keep a close eye on it to see there is no predatory pricing,” he said, adding that the RAB will also undertake a market review in due course.

When asked about concerns regarding smaller companies being squeezed out of the market, Mr Watson said: “Any market goes through phases where there is consolidation, but there is always room for smaller players with individual products and services that are viable.”

It has been a lengthy period of deliberation for the authority, starting on February 20 when it received formal notification of the proposed buy-up.

“We went to work on it and did a lot of analysis and diligence. We went through the process and used outside experts and advisers,” Mr Watson said. There was also a period of public consultation, when feedback was invited from within the industry and from residents.

Mr Watson described the level of feedback as “good”, and noted that one concern residents had was that BTC be preserved. Digicel set up the deal in January, only a few months after Canadian-led Barrie Holdings bought BTC from KeyTech for $30 million.

Mr Watson said: “We believe that the new, merged company will provide more robust competition in the electronic communications sector, to the benefit of the Bermuda consumer.”

In a statement yesterday, the RAB said: “After a thorough, nearly three-month-long investigation, which included a request for public comment, the merger was approved subject to certain conditions designed to promote innovation and competition in the Bermuda electronic communications market.”

Digicel Bermuda said in a statement that it had noted and is now reviewing the RAB’s decision and its conditions, and would issue a more comprehensive response once this assessment has been completed. “In the meantime, Digicel would like to thank the RAB and the people of Bermuda for providing their opinions on the purchase of BTC during the consultation process,” the company said.

The Royal Gazette also contacted BTC for comment on the announcement, and was awaiting a response at press time.

The full decision details and conditions are expected to be made available on the RAB’s website early next week at www.rab.bm.