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LinkBermuda holds off investing in new business until there is ‘regulatory certainty’

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Concerned: LinkBermuda's office in Hamilton. The company says it is holding off on major investment until there is regulatory certainty.

LinkBermuda says it is holding off investing in new business in Bermuda until there’s “regulatory certainty” in the Island’s telecoms sector.Commenting on the protracted public battle over Digicel long distance, LinkBermuda, which provides international telecoms and data centre services, said it has also seen its revenue shrink as a result of losing customers to Digicel’s new prepaid and roaming ILD services.“We are disappointed that the process is being played out in the press,” LinkBermuda COO & CFO Miller Williams said. “We are looking forward to a resolution. But we want regulatory certainty with a level playing field.”Mr Williams said LinkBermuda has expanded its data centre and ramped up hiring but for now “was not doing anything new”.Mr Williams added the former Cable & Wireless Bermuda was pleased with its current business in Bermuda and remained committed to its customers here.He also said LinkBermuda was pleased with the Government’s announcements concerning the ICOL (Integrated Communications Operating Licences) process moving forward.“We are not pulling back, just not moving forward. We hope to make further investments in Bermuda but at this time the Digicel situation, which effects us and TBI especially, has been damaging,” Mr Williams said.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.Digicel launched its ILD last year through sister company and ISP Transact. CellOne fought interconnection while TBI and Government took legal action over it.Last month Minister of Environment, Planning and Infrastructure Strategy Marc Bean announced he was committed to issuing ICOLs no later than March 31, allowing the Island’s telecoms providers to finally be able to offer bundled services to customers.In a strongly worded statement from the floor of the House of Assembly last Friday, Minister Bean charged that it was the Government’s view that Digicel “jumped the gun and has attempted to gain a head start on other competitors” by launching ILD.He slammed Digicel Bermuda for making “harmful” and “dangerous” allegations in the media.Hours after Mr Bean’s statement, Digicel came back, accusing Government members of acting “with a bizarre and troubling inconsistency”.Digicel said it’s “a simple and inarguable fact that it received express approval from the Government to purchase Transact for the purpose of selling ILD services” and the company accused Government of “now defaulting on its express approval and pretending as if this approval never happened”.Digicel is suing Government for damages for what it says was “misfeasance in public office”.Mr Bean has said a decision on any action he will take on the Digicel ILD, if any, could come this month.We reported last month that the Telecoms Commission had advised Government that it found Digicel and Transact were not in compliance with their licences.Regardless of what the Commission or Minister rule in the dispute, the battle will likely end up back in Supreme Court.

Miller Williams: COO and CFO of LinkBermuda