Telecoms watchdog chief Robert Watson says approval of a deal for Digicel to take over phone firm BTC will increase innovation and competition.

Mr Watson, chief executive of the Regulatory Authority of Bermuda (RAB), added Digicel had agreed to conditions on the takeover designed to ensure a good deal for consumers.

“We were asked to look at the new possible ownership structure. Digicel has proven to be an operator, operating systems around the world and we were looking for innovation and competition,” he said.

“We got these assurances from Digicel and we feel they are a good company to ensure a competitive, innovative choice for the people of Bermuda.”

Mr Watson was speaking after Digicel on Monday completed the takeover of BTC from previous owners Barrie Holdings, who bought the firm from KeyTech less than a year ago for $30 million.

The sale leaves Digicel and KeyTech, which owns CableVision and Logic and has cellphone firm CellOne as an affiliate, as the two main network providers on the Island.

Mr Watson said: “We have conditions in there to keep an eye on them. Our interest is to make sure competition remains robust on the Island and innovation is key to that, not only with Digicel, but from anyone on the Island.”

He added that the RAB had “not heard any complaints” about the conditions and that the regulators had worked with the firm to thrash out an acceptable framework for the takeover.

Mr Watson said: “We both wanted things and we met in the middle. We took the time to review the file, consult the industry and seek the views of the people of Bermuda. We think it’s a good way to move forward.

“We want to see competition, choice for the consumer, a competitive choice, and prices at a competitive level.

“When you have strong companies like the KeyTech group of companies and the Digicel group, you have two very well-structured companies who will be very strong competitors.”

Regulators approved the takeover deal last month — but admitted there was a risk of a powerful duopoly, which could lead to a lack of competition on prices and market share.

But the RAB said that was unlikely, given Digicel’s intention to invest in system upgrades and extensions.

Another major condition of the RAB approval was the safeguarding of access to wholesale networks and services at a fair price for other companies with communications operating licences.

And a key requirement for Digicel, for the present, to keep financial and product accounting separate from all other Digicel affiliates.