More jobs for Bermudians will be created at Bermuda Telephone Company (BTC) if it is acquired by Digicel, and investment will be made to improve the performance and reliability of BTC’s network infrastructure.

Those are two of the outcomes Digicel foresees should it move ahead with the proposed transaction that was announced in January.

The Regulatory Authority of Bermuda (RAB) has studied the deal and last week issued its final decision, which gives a green light for the acquisition subject to Digicel agreeing to a number of conditions.

Digicel is reviewing the 40-page decision document and is expected to respond within the next few days.

The combining of Digicel and BTC would create a telecommunications heavyweight to match KeyTech Group, which has CableVision Bermuda and Logic as subsidiaries and cellphone firm CellOne as an affiliate.

In its decision document, which was made available to the public this week, the regulatory watchdog acknowledged there was a risk from Digicel and KeyTech subsequently having joint dominance in the sector. The RAB noted such a duopoly could open the door to tacit coordination on prices and division of the market. However, it did not think this was likely given Digicel’s expressed intention to invest in upgrades and extensions.

“The result can be expected to be more robust competition in price, service quality and innovation, which will be to the benefit of the people of Bermuda,” the RAB stated. It also said it would keep a vigilant eye on developments through its market review process.

In its representations to the Authority, Digicel indicated it did not anticipate job losses at BTC as a result of the buy up, and foresees more jobs in technology, customer service, sales and marketing, with new hires being predominantly Bermudian.

The company told the RAB it “currently locates employees relating to its Bermuda operation largely in Bermuda and there is no current plan to change this approach with respect to the acquisition of BTC.

“As an example, unlike some competitors, Digicel maintains a local call centre which manages the majority of customer enquiries in Bermuda and is staffed by Bermudians.”

A major theme in the RAB’s conditions is the safeguarding of access to wholesale networks and services, at fair prices, for other firms with communications operating licences.

As an example, for any regulated wholesale services a Digicel-owned BTC offers to other Digicel affiliates, which can then be bundled, there must be equivalent services available at “conditions no less favourable” to non-affiliated wholesale customers.

If BTC offers new retail services it would be obliged to ensure there is a fully tested “fit for purpose equivalent” wholesale service available for other access seekers.

There are similar stipulations listed in the RAB’s decision document designed to ensure other operating licence holders have access to services and network infrastructure at wholesale pricing.

Digicel would be obliged to give other regulated communications companies fair access to the BTC network, and provide services and information under the same conditions and same quality as it provides to its own affiliates and partners.

It would also be required not to make technical modifications to the network that would “unreasonably or unnecessarily obstruct or impede” other non-Digicel communications operating licence holders from connecting with the BTC fixed-line network.

A key requirement is that a Digicel-owned BTC should, for the present time, keep its existing financial and product accounting information system separate from all other Digicel affiliates. This is to aid transparency and address concerns that there might be unfair favouring of Digicel affiliates regarding advance information on fixed network plans, unfair bundling of services or unfair pricing.

RAB also stated that BTC’s historic importance to Bermuda in providing a landline telephone network and as “carrier of last resort” for basic telecommunications for many residents, meant it must be maintained as a “viable commercial entity”. There are safeguards to ensure it is not asset-stripped or transferred outside Bermuda.

Four companies involved in the electronic communications sector, together with eight individuals, submitted comments to the RAB regarding the proposed deal.

LinkBermuda, TBI and CellOne did not oppose the transaction, although urged the RAB to pursue a number of stipulations to ensure a “level playing field”.

The fourth company, iTech, said it opposed the deal on the basis it would create a duopoly, and was concerned Digicel did not have the same interest in being a wholesale access provider as BTC stated it had in 2012.

Of the individual submissions, six were opposed to the buyout, citing concerns about loss of employment, blockage of competing services, poor service quality and an anti-competitive effect. One respondent was neutral on the deal and one was in favour.

The RAB stated in its document it expects the transaction between Digicel and BTC to enhance the Island’s competitiveness globally.

It said: “Digicel Group (Bermuda) has represented that it will invest in the upgrading of BTC’s legacy network infrastructure. This has persuaded the Authority that the proposed transaction will do much to enhance Bermuda’s competitiveness globally by making it an even more attractive place for the financial services industry and other technology-dependent industries to invest.”

The RAB’s decision document can be read at the website www.rab.bm