CableVision blacked out screens at midnight last night after Government failed to give it a 15-year licence in exchange for signing off on a deal to improve service.

Telecommunications Minister Renee Webb labelled the manoeuvre blackmail but CableVision said they entered talks on a service agreement because they thought a new licence would come with it.

The midnight deadline came at the end of five-day's of negotiations after the company won in the courts the right to cease service after rejecting a one-year deal they say would be commercial suicide.

Asked how long the blackout would go on CableVision lawyer Alan Dunch said: “For as long as it takes to get a satisfactory licence.”

However Ms Webb said: “There isn't a problem with having a 15-year licence. They might have got one. The issue is getting the service level agreement which we all agreed to.

“But under these circumstances what am I supposed to do? I can't be blackmailed into it. We never said we wouldn't give them a 15-year licence.

“We could have said ‘Great the service level agreement is here, thank you guys - a 15-year licence'. We were hoping that's how it would end. We were expecting it.”

She said she was surprised by the company's hard-line after the two sides met yesterday to discuss a final draft on service level as Government aims to make the company more accountable over customer complaints.

Asked what would happen next she said: “I don't know what else I can do. They are the ones who decided to shut it down. We can't pull a switch and put it back on.”

Asked if CableVision would be open to mediation Mr. Dunch said: “There is nothing to mediate. The issue is clear cut.

“The word blackmail is prejudicial and used for political purposes. It's not blackmail. It's commercial reality.”

He said the Solicitor General had called his offices to discuss the licence at the same time Ms Webb was in a press conference attacking the firm.

He said: “I was shocked.”

He blasted Ms Webb for wasting time with the press rather than continuing with licence talks, saying CableVision would have been keen to talk right up to the midnight deadline last night.

Mr. Dunch said he was surprised to learn Ms Webb had said a 15-year licence was possible.

“That's the first indication this company has ever had that there is no problem with offering a 15-year licence.

“If they had come to us and said ‘Fine. We have a service level agreement we can both live with, here's your licence', we would not be in this situation now. But she's never once indicated she's prepared to offer it.

“We have made an application for 15 years but at the moment we have been offered zero.

“It's against the law to operate without a licence. It can lead to a criminal conviction of two years in jail. The indictable offence is four years and/or fines.”

However Mr. Dunch hinted the 15-year licence was not set in stone.

He said: “If the Minister makes an offer which is commercially sensible no prudent board of directors would decline to give it serious consideration but it's clear they haven't been afforded that opportunity.'

“That's the tragedy in all this. Whose fault is that? Only one person can be blamed and it's not CableVision.”

Asked if they were seeking talks Mr. Dunch said: “We are not seeking anything other than a 15-year licence. But obviously we are ready and willing to speak to the Minister.”

The company said measures would be put in place to refund customers and the company's future would be discussed with staff over the next few days. Mr. Dunch added: “The staff are very supportive.”

Asked if the company risked further angering the public already upset about poor service and the axing of some World Cup coverage, Mr. Dunch said the World Cup situation was nothing to do with the licensing row.

And CableVision spokeswoman Elizabeth Tee said the company was improving service by upgrading equipment.

CableVision Chairman Rod Hansen said: “We sincerely apologise to our customers that we are once again forced to shut down our system at midnight this evening.

“A short term licence for a company which is making a long-term, ten million dollar commitment does not make good business sense, nor could it be considered fair play.”