Logic has an eye on TV market

With telecom reform imminent, Logic Communication and North Rock’s announcement of a merger was a shocker. The pair combined just a few days before reform was to take place. 

Vicki Coelho, who was head of North Rock Communications, became the CEO of the now larger Logic. She said the company has become stronger thanks in large part to its customer service and all-Bermudian workforce.

Logic is exploring the possibility of offering television services, which would put it in competition with sister company Bermuda CableVision.

In a fourth in a series of interviews with the leaders of Bermuda’s telecommunication companies, she sat down with Don Burgess to talk over Telecom Reform and the merger.

What's been the biggest challenge for Logic in the Telecom Reform?

The largest challenge is the significant amount of consultation documents and the lengthy period of time to respond. Since January there have been eight consultations and close to 1000 pages to review and respond to. We are encouraged by the  Regulatory Authority’s accessibility and their willingness to meet and discuss any concerns we may have.

How has the deal with North Rock strengthened Logic’s position?

There were products and services that Logic didn’t provide such as local telephone and wireless data access so it gives that customer base another opportunity to move off DSL or CableVision. Part of the rational of the amalgamation with the ICOL (Integrated Communication Operating Licence) regime, we sensed that in order to have long-term success we need to be joined and larger and have the synergies and cost savings of one larger Internet Service Provider (ISP) because there was a lot of duplication between the companies in terms of engineering, billing finance. 

Fortunately it happened because of the price erosion it would be really difficult in the long-term to survive. 

Is there any sadness on your part in seeing the North Rock brand disappear?

Part of the rationale as to why we did the market research because the North Rock family, obviously, had great pride in the brand, as did the Logic family, so we wanted to take out all the emotion to see which was the best brand to go forward and the community said Logic was the stronger brand. 

It was an interesting time but I’m really very happy to be the CEO of the joint entity. 

We have an incredible team in terms of the complement of people that we have. We are going from strength to strength.

In the KeyTech group of companies, how is it decided which company is going to offer which product?

We run independently so we have our own distinct boards. Each of us are charged with the success of that entity. KeyTech has BTC, their original 130-year-old company which provides data services, as does CableVision, an affiliate. As we look at potentially providing TV, we’ll be competing against CableVision. We are run independently and if we believe there is a market opportunity, then we will enter that area.

What new services might you offer in the near future?

Fortunately, with the amalgamation of Logic and North Rock, Logic never had the ability to do voice or wireless access and that was part of the North Rock portfolio. Presently we do Internet, local telephone service, we do wireless data access to businesses and homes, and we do long distance. So the only area we’re not touching is content, which is TV and that’s absolutely an area we’re investigating. 

We have some very exciting new services that we will be introducing, that will further increase our competitiveness and solidify Logic’s position. We look forward to providing bundles, one bill, and enhanced value.  

Why is it key that you stress the Bermuda angle of your company?

We are the only Bermudian-owned and operated Internet Service Provider so we’re competing against international companies. We’re hoping that the local market will respond positively to that. 

We did some market research in May after the amalgamation would be stronger — the North Rock brand or the Logic brand? What came from the research was that both of the companies were Bermudian and that was really a positive. The market research indicated that and that’s why we’re pushing the Bermudian focus.

We’re also repatriating the Logic help desk back to Bermuda. It was outsourced to Canada. People really like to have a Bermudian here and helpful rather than getting some stranger overseas. A lot of issues can be weather related so if there is a lightening storm on the weekend, which causes someone’s modem to be fried, we’ll know there was a lightening storm. We’ll know that here as opposed to someone who is overseas. It will speed up the process.

When do you expect the help desk to move back to Bermuda?

We’re recruiting now and by August 31st, we’ll be all domiciled in Bermuda. We’ve created three new jobs.

Do you have to deal with remedies from the Regulatory Authority?

We’re not dominant even though we have a significant market share in Internet, they (the Regulatory Authority) see Internet as an easy area to enter into so we don’t have any remedies unlike BTC. We’re not in the penalty box so we can do whatever we want to do. 

What advantages do you have over Digicel or TeleBermuda in Internet?

We believe our technical expertise is second to none. The way our architecture works and the resiliency is second to none — it is really world class. Plus we’ve been doing this for 17 years so we really understand what the customer requires. 

We understand how to keep them; how to keep their service up and running. Also, our customers service is very, very strong. The ability to walk in and meet with the help desk person, pay your bill all at a convenient location on Church Street. 

Some others include

* 17 years’ experience developing Bermuda’s most robust and resilient network

* Complete Island Wide Coverage

*  24/7 proactive on island network monitoring

* Wireless Internet Services and local telephone

* Highest customer satisfaction ratings on the island

With the reform now in place, have you noticed any changes in market share?

We’re really monitoring this closely and it’s interesting in we haven’t noticed a lot of customers departing. It’s pretty much status quo, which is very, very encouraging when you consider the pie is being sliced into more pieces. People leave if they’re unhappy, but fortunately people are very happy. 

How important does that make customer service then?

In terms of hierarchy of service, customer service is number one in our values and second is innovation. It’s one thing to have great products but if you can’t support them effectively, then people aren’t going to come to you so customer service is paramount.

What’s something people need to know about Logic?

Longevity — we were the first people to bring Internet to Bermuda. It was called IBL, Internet Bermuda Limited, and that was 17 years ago so they were pioneers in bringing this important product and service to the island. If someone’s Internet not working, it’s worse than their cellphone or landline — it’s so critical to the way people live and learn. 

Network stability is another key differentiator of ours as well as the Bermudian factor.  
Our key drivers are customer satisfaction and innovation. At Logic, we want to ensure that every customer is given the best experience possible. Logic is also unique in that we have multiple access methods. Customers can use DSL, Cable, or wireless. We have multiple off island fibre links and multiple points of presence in North America and Europe, to meet the ever increasing demands. Logic is very proud to be a Bermudian based and owned company, and will constantly strive to bring you the best service possible.