The licensing authority for illegal call-back telephone companies revealed last night that it would not intervene in any dispute between Government and GlobalTel until court proceedings had been brought and proved unsuccessful.

The Telecommunications Ministry has been at war with the cheap-rate telephone company since call-back firms were outlawed in Bermuda at the end of last year.

GlobalTel has continued to operate on the Island and has even stepped up its recruitment campaign -- randomly calling homes for new business -- despite being cut off twice and having equipment seized.

Minister Renee Webb said a file was being put together for the Federal Communications Commission (FCC) in Washington, which licences all US firms who provide an overseas service.

She said she was hopeful the licensing body would take action against call-back firms providing a service in Bermuda.

The ministry is considering the possibility of a civil case.

However, yesterday, The Royal Gazette discovered that the onus is very much on Government to stop GlobalTel, and the FCC by no means promises to intervene.

The licensing authority has only ever stepped in once before, placing a cease and desist order in 1997 on two companies continuing to operate in the Philippines, despite a ban on call-back.

Those orders still exist today. If those sanctions are broken, then the companies could be ordered to pay a forfeiture fee.

However, the FCC deemed some years ago that call-back was a benefit to the consumer and was a good telecommunications policy for the US.

For that reason, it does not automatically step in at the request of overseas countries and Governments.

John Copes, Attorney Advisor for the International Bureau of the FCC, said: "GlobalTel has been licensed as a call-back operator by the FCC. That does not mean specifically with respect to Bermuda, but more on a world-wide basis.

"Companies licensed by the FCC can serve any country without having to apply for any further authorisation. However, although the FCC deems call-back services to be legal, we do not advocate US companies violating overseas laws.

They must comply with the laws.

"However, we do not apply laws from overseas. If they are banned in another country, that is contrary to our laws and contrary to what we believe, which is that call-back is good telecommunications policy and is quite beneficial to consumers.

"So, that is precisely why we are very deliberate and careful in invoking the powers we have and intervening at the request of a foreign Government.

FCC make no promises "We ask the country concerned to try and put a stop to it.'' And he said the FCC could never commit itself from the outset to stepping into any dispute between a company and overseas Government.

He added: "What we say is if a country can show that it has unsuccessfully prosecuted the company concerned, then we may consider looking at the case and getting involved.

"The onus is very much on the country involved. We never automatically promise to step in.'' Mr. Copes refused to be drawn on the GlobalTel and Bermuda situation, and said he was unable to say what maximum forfeiture fee could be demanded.

But the FCC can take action under the Communications Act 1934.

Last night Telecommunications Minister Ms Webb was off the Island, as was Director of the Ministry Greg Swan.

But Telecommunications Inspector Hiram Edwards said he was not surprised by anything the FCC had said.

He said: "The Telecommunications Director has indicated that we will put a stop to call-back in Bermuda and we will continue to take action.

"We recognise the legal implications surrounding putting a stop to it. We are taking advice from the DPP at the moment.

"We are and will continue to follow these procedures in order to reach a final resolution that will benefit Bermuda.

"We recognise that it is a process that must be followed and that will take time. We also appreciate very much that it is our ball-game. Once we have made the effort, the FCC will do their bit.'' Yesterday, The Royal Gazette reported that the ban on call-back companies had had little or no impact on one of the two companies operating an overseas service, TeleBermuda International and Cable and Wireless.

C&W General Manager Eddie Saints said it had seen growth in new business on the previous 12 months, but that was largely down to its own marketing initiatives.

However, he said C&W had seen a 33 percent rise in the number of incoming calls on its lines in the last couple of months of last year, which he confidently said was largely down to GlobalTel "blitzing'' people on the Island with calls in a bid to win more business.

But he said the ban had not worked sufficiently, yet.

He said: "Call-back is still prevalent in our market. We would have expected more growth. Put simply, we have not had any benefit from the ban.'' And in the meantime, the Director of Public Prosecutions Khamisi Tokunbo is looking at the case and advising the ministry on whether criminal proceedings can be launched.