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Winners and losers in new telecoms fee structure

The Island’s telecoms providers will face a new fee structure under regulatory reform of the $210 million-revenue industry.Some providers, including Digicel and CellOne, will pay more in fees, while others like TBi and Link Bermuda, will pay less.But overall the total amount of fees paid by all carriers to Government and the new Regulatory Authority will remain largely the same after the issuance of the first Integrated Communications Operating Licences (ICOLs) this year.Currently the providers pay fees according to their A, B or C licence classes, ranging from three percent to six percent of revenue.Under reform, the RA has recommended all ICOL holders pay the same 3.8 percent fee.Of the 3.8 percent fee, 1.75 percent will go to the RA for its expenses and operating costs and the rest to Government coffers.Class A international carriers (TBi, Link Bermuda) currently pay a six percent of revenue fee, but under the new fee structure their fee will drop to 3.8 percent.However, Class A domestic carriers (BTC, Quantum, Digicel, CellOne) and Class C ISP (Logic, North Rock, Transact, Fort Knox), carriers will see their fee go up from three percent to 3.8 percent, while Class C VoIP providers’ fee will go down from 4.5 percent to 3.8 percent. Cable TV providers (CableVision, WOW) currently pay three percent, so theirs will go up slightly.However, under reform, the providers will have new opportunities to be able to offer new products and services with the granting of the ICOLS.For example, a domestic provider will be also be able to offer internet and TVservice.Providers will continue to pay various other fees to Government, including the handset fee which generates some $5.6 million in fees.