Firm action from Telecommunications Minister Renee Webb could result in US-based callback service providers losing their operating licences. Her move came in an effort to help safeguard local companies who estimate they are losing as much as $3 million a year to the US companies.

Last week Ms Webb was successful in a bid to have Bermuda placed on a special list held by the US Federal Communications Commission (FCC) who have responsibility for all telecommunications.

The list features about 20 other countries that prohibit the use of callback service, and gives the local Ministry some real muscle in trying to fend off the encroaching business.

"This decision to stop the use of callback services, is the only way of ensuring that those companies that are providing jobs for Bermudians, have some means of protection from callback service providers that are only interested in skimming revenue from our economy and not contributing to it,'' Ms Webb said in a Press conference yesterday.

Ms Webb and director of telecommunications, Greg Swan, met with FCC officials in Washington DC last Thursday. She said that at that meeting the FCC openly stated "that it would be prepared to receive documentation from any Government which seeks to put US carriers on notice that callback using uncompleted call signalling, has been declared expressly illegal in its territory''.

In order for the move to have any real effect, Ms Webb conceded that Government would have to enact law which clearly made such practices illegal.

At the moment it was only Government policy which prohibited the service. Ms Webb said that once the legislation was in place the Ministry would prosecute offending firms.

"Once we do that,'' she continued, "the FCC will ensure that those companies desist from operating callback services in Bermuda.

"Once the FCC tells them, then that's it because the licensing issue is very real one,'' she added.

Clampdown on US callback services In the meantime, the offending US companies will be informed that Bermuda has been placed on the FCC list. "But that does not mean that they will necessarily stop,'' said Ms Webb who has been battling with at least three US companies for several months.

"We've tried all the routes. We've contacted the US callback companies and told them that it is illegal in Bermuda,'' she said, "but it hasn't made any difference so we've gone to their regulatory body because they are clearly ignoring our regulatory body.'' The Island's largest long-distance carrier, Cable & Wireless welcomed the news.

"That is really very good news,'' said Edgar Dill sales manager of Cable & Wireless. "While it is very difficult to determine how much business we lose as result of the callbacks, I would estimate it to be in the hundreds of thousands per month.'' Ms Webb said when she last spoke with the US companies six months ago, they had about 1,600 clients. But she also claimed that those numbers had dropped with the introduction of Voice Over Internet Protocol (VOIP) allowed in June.

After that decision, Internet service provider Logic Communications quickly began cut rate long distance service of 44 cents a minute through their VOIP product -- Logic Phone.

Ms Webb said the Ministry had anticipated the lower rates and "it is also our expectation that we will see additional reductions in Internet service rates in the future''.

She explained that her decisions were made in the best interest of the consumer but must also allow businesses the opportunity to be successful.

"You want people to be able to operate in a fair market,'' she said.

"If you have pirates that are coming in and pirating the system then clearly that could be revenue that could be brought to the local telecommunications companies.'' Getting tough: Renee Webb GOVERNMENT GVT