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Quantum given licence to be 100% foreign owned

Quantum Communications has been given a licence by Government that allows 100 percent foreign ownership. And LinkBermuda yesterday confirmed that this will allow it to increase its ownership of Quantum to 100 percent.

International service provider LinkBermuda (formerly Cable & Wireless) already owns 40-percent of Quantum, a domestic service provider.

LinkBermuda COO Miller Williams said Quantum’s winning a 114B licence was aimed at preparing for regulatory reform.

“LinkBermuda is very encouraged by this action and other recent government actions that will change the regulatory environment in which Quantum and LinkBermuda operate,” Mr Williams told

The Royal Gazette yesterday. “As soon as there is regulatory certainty LinkBermuda will announce its intentions to better serve Bermuda.”

A copy of Quantum’s 114B licence from the Ministry of Business Development expressly forbids any bundling of the two companies’ services.

The licence states: “All services offered by both the company (Quantum) and LinkBermuda shall continue to be available separately to all customers ... neither the company (Quantum) nor LinkBermuda shall bundle services across their respective licence classes; that all services provided by each licence must be marketed and branded separately.”

Digicel stirred up controversy last year when it launched long distance calling through sister company and ISP Transact, which it acquired last September. CellOne fought interconnection while TBI launched legal action over it. The dispute over Digicel long distance is now before the Telecoms Commission; a decision was due this month.

The long-awaited regulatory overhaul is expected to finally allow Bermuda’s telecoms providers to offer one-stop-shopping for communications services such as phone, cable, wireless, cell and internet. This after passage this past December of legislation bringing down the current licensing regime.

It remains unclear when universal licences will finally be available from the new Regulatory Authority. The Department of Telecommunications declined to give a time frame yesterday.

Quantum is Class B domestic provider of data and voice services connecting customers to international carriers, internet service providers and others providers. The company uses a fibre optic network that interconnects more than 130 buildings in Hamilton, with service extensions through Devonshire eastward towards Southside. Quantum’s voice services are delivered via VOiP network switch.

LinkBermuda was acquired last year by Canada’s Bragg Group in a $70 million deal. Under the Eastlink brand, Bragg was one of the first companies in North America to introduce bundled video, voice, data and internet services to the business and consumer marketplace.

Several years ago, prior to the new ownership, Cable & Wireless had sought permission to acquire 100 percent of Quantum but had been denied by Government.

LinkBermuda: Permission to acquire 100 percent of Quantum

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Published February 03, 2012 at 1:00 am (Updated February 03, 2012 at 6:21 am)

Quantum given licence to be 100% foreign owned

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