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Digicel able to offer long distance service again, rules Supreme Court

Back on: Digicel has been granted permission by the Supreme Court to resume offering its long distance service

The Supreme Court has allowed Digicel to again offer its controversial long distance service but the company said yesterday it will hold off on relaunching it until it meets with Government officials.“At the moment we wish to consult with the Government in order to identify a rational and expedient road to resolution,” a Digicel spokesman said.This comes after Chief Justice Richard Ground ordered a stay of proceedings on Wednesday, siding with an application by CellOne and ruling the dispute ought to properly go before the Telecommunications Commission. He said yesterday that Digicel no longer had to undertake to not market the service as the Supreme Court was no longer hearing the dispute.Gregory Swan, president and COO of long distance provider TBI said of the ruling: We have always felt the appropriate statutory body to address regulatory matters such as this belongs with the Telecommunications Commission.”In court yesterday telecoms providers also battled it out over who should pay for the massive legal costs of the case going to Supreme Court.Mr Justice Ground heard arguments from TBI, CellOne and even Government's lawyers on why they should not have to pay costs as the case should have gone before the Commission in the first place.In the end Mr Justice Ground adjourned costs pending the outcome of any Commission decision in the dispute.In a statement after the hearing yesterday, Digicel said it was “delighted with the outcome of proceedings in the Supreme Court this morning in which the Chief Justice fully discharged Digicel and (sister company and ISP) Transact from their undertaking in respect of the provision of international long distance services”.The statement continued: “Digicel is very mindful of the deliberately generated controversy that has engulfed this matter over the past weeks. Digicel is also very mindful of its considerable responsibilities as a good corporate citizen in Bermuda and has sought at all times to respect those responsibilities and behave in a manner befitting one of Bermuda's leading businesses and employers.“In light of this, Digicel is anxious to immediately engage with the relevant Ministries and authorities to resolve all matters at issue expeditiously and without unnecessary rancour or expense. Digicel shall engage immediately with the Government in good faith.“Digicel and Transact expect to be in a position to make a public announcement in respect of the provision of international long distance to all residents of Bermuda in early course. “Digicel also stated: “The Judge further refused applications made by the Defendants to issue an injunction against Digicel and Transact from providing international services in Bermuda.“The Chief Justice agreed with the position advanced by Digicel that the provision of international services by Digicel and Transact enjoys the presumption of legality. Digicel is now free to provide international long distance services to the people of Bermuda.“Digicel looks forward to really shaking up the market for international calls by bringing offers and pricing to Bermuda that have never been seen before. However, Digicel's immediate priority is to engage with Government to discuss all matters at issue and shall do so before any action will be taken in respect of the provision of long distance service. Digicel is very confident that these further deliberations with Government will resolve any issues that may continue to exist.”Digicel and Transact wish to clarify once again that the provision of ISP services by Transact has never been implicated or challenged in these proceedings. Digicel and Transact shall continue to provide ISP services without any hindrance or possible impediment.”Digicel originally went to court to get CellOne to provide interconnection for the long distance service.Government then was joined with long distance provider TBI in objecting to Digicel's launch of a long distance service.Mr Justice Ground ruled on Wednesday that the Commission was set up and had the power to deal with the dispute before him and was the best place to decide such technical issues as the definition of “bundling”.Digicel had vigorously opposed sending the case off to the Commission, with the company's lawyer Jan Woloniecki arguing that halting the trial, which was supposed to begin yesterday morning, would be “unconstitutional” and “a shocking injustice” to his clients.ISP North Rock has also gotten involved in the dispute, sending a letter to the AG calling on Government to declare Transact in breach of its licence, which would effectively stop it from carrying on business.Consultant Crown counsel Maurice Cottle revealed in Supreme Court on Wednesday that the Ministry of Business Development and Tourism was “actively considering” whether to revoke or suspend Internet provider Transact's licence.Mr Cottle said the Minister had powers under the Telecoms Act to make such an order, noting the Registrar of Companies comes under the Ministry of Business Development.It's Government's case, as stated in affidavits, that the Digicel-branded long distance service (now halted by court order) offered through sister company Transact is not lawful and that Transact does not have a licence to do business in Bermuda.