Cable & Wireless cuts off new US callback service
Cable & Wireless' overseas telephone rates were incorrectly reported in Saturday's paper. The correct rates are 80 cents to $1.15 per minute depending on the time of day.
Cable & Wireless has pulled the plug on a Seattle-based company offering "callback'' long distance service to Bermuda customers.
And the same would happen to any other company offering the service, a Cable & Wireless spokesman said this week.
A company called Kallback has been advertising in The Royal Gazette , promising subscribers "international phone calls for less''.
The company's name alone suggests it is operating a callback system, like the one offered by Global Access Bermuda before the Supreme Court ruled it had to seek a telecommunications licence. A decision of the Telecommunications Commission is pending.
Mr. John Instone, spokesman for Cable & Wireless, said the company felt the court's judgement in the Global Access case "clearly demonstrated that C&W is not required to make service available to callback operators.
"As a matter of course, therefore, Cable & Wireless now blocks access to numbers they know to be being used for callback purposes.'' Earlier, Mr. Instone told The Royal Gazette that C&W was not aware of Kallback having customers in Bermuda and was not planning any action. However, that comment was made on April 13, not on April 18, as reported on Tuesday.
Kallback, which charges a $50 activation fee and a $10 monthly fee, promised long distance savings of 50 percent or more. To call the United States from Bermuda, it quoted rates of 53 cents to 90 cents per minute, depending on the time of day. Telco charges 90 cents to $1.25 per minute.
A Kallback spokesman said rates were also available between Bermuda and the United Kingdom, Canada, and most other places in the world.
More than 1,000 customers signed up with GAB after it launched its service last spring. At the end of May, Cable & Wireless blocked the company's calls, and Puisne Judge the Hon. Mr. Justice Ground later ruled that GAB required a Bermuda licence.
Callback services offer cheaper long-distance rates by using telephone lines based in the United States, where rates are very competitive.
The Bermuda customer would place a call to a US-based computer, wait for one ring, and then hang up. The callback computer would then ring back within seconds, and provide the user with an American phone line.
