Thursday, October 27, 2011 – Hamilton, Bermuda.  The Supreme Court today has decided that the Dept. of Telecommunications (represented by the Attorney General’s Chambers) should be given an opportunity to voice its objections regarding Digicel’s Long Distance service.  Unfortunately, the Attorney General’s Chambers does not appear to have formulated any cogent or coherent objection despite being given an opportunity to do so over the last 7 days. This is rather startling given that the relevant Ministers and their departments were kept fully informed during and after the necessary governmental approvals were obtained.

Wayne Caines, CEO of Digicel Bermuda, comments on the matter, “I empathise fully with the Judge.  A case of this magnitude requires all the appropriate time and attention in order to ensure all stakeholders that our long distance service is fully compliant with all legal and regulatory requirements.  Throughout the process of acquiring Transact we have consistently disclosed to the Government that our intentions were to launch a long distance service under the 114B license held by Transact.  The fact that our competitor’s object is not a surprise.  And in response to our competitor’s objections we are neither surprised that the Government has requested time before the Courts to be heard on its position.  We strongly believe that once the facts of our case are fully presented before the Court that it will be evident that Digicel and Transact are operating within the law and the boundaries of our respective licenses.”

Unfortunately, until the trial is completed and despite consumer demand, Digicel Long Distance will pause from accepting new customers to its service. 

Digicel has always maintained that this new service is legal.  Mr Caines continues, “The telecommunications landscape has changed dramatically since the Telecommunications Act of 1986 and it is clear that there is a lack of understanding about the technology being used by Digicel in order to provide VoIP long distance services in Bermuda.”

Facts and history on how the long distance service is provided are below:

·           On September 21^st 2011, Digicel acquired Transact Limited, a local internet service licensed to provide internet services.

·           The acquiring of Transact Limited was an entirely legal acquisition.  All correct legal and regulatory steps were taken by the relevant parties to complete this corporate transaction.  The Bermuda Government and Minister Roban approved the acquisition and granted the 114B license in September 2011.

·           Transact uses VoIP technology to carry long distance traffic and this method is no different from the method used by Logic and North Rock to carry their own long distance services to mobile and landline customers.

·           Transact Limited is a member of the Digicel Group of companies and currently only provides Digicel customers with long distance services.

·           The long distance service is marketed under the Digicel brand name.  When a Digicel customer signs up for Transact’s long distance service, they are in fact contracting directly with Transact Limited.  This is fully disclosed and clearly printed on all long distance sign up forms.

The people of Bermuda have already benefited from better value due to increased competition in the market and Digicel is confident that the Bermuda Government and the Supreme Court will continue to allow Transact to continue to compete on a level playing field with other ISP’s, namely Logic and Northrock.

ENDS

About Digicel

After ten years of operation, Digicel Group Limited has 11.5 million customers across its 32 markets in the Caribbean, Central America and the Pacific. The company is renowned for delivering best value, best service and best network.

Digicel is the lead sponsor of Caribbean, Central American and Pacific sports teams, including the Special Olympics teams throughout these regions. Digicel sponsors the West Indies cricket team and is also the title sponsor of the Digicel Caribbean. In the Pacific, Digicel is the proud sponsor of several national rugby teams and also sponsors the Vanuatu cricket team.

Digicel also runs a host of community-based initiatives across its markets and has set up Digicel Foundations in Jamaica, Haiti and Papua New Guinea which focus on educational, cultural and social development programmes.

In 2004, Digicel developed Digicel Rising Stars – an annual talent show to support aspiring young music artists in the Caribbean. The show has spanned the Eastern Caribbean, Haiti, Jamaica and Trinidad & Tobago ranking as one of the top-rated shows.

Digicel is incorporated in Bermuda and its markets comprise: Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, Fiji, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Nauru, Panama, Papua New Guinea, Samoa, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Tonga, Trinidad & Tobago, Turks & Caicos and Vanuatu. Digicel also has coverage in St. Martin and St. Barts in the Caribbean.

Visit www.digicelgroup.com for more information.