It’s off to the races for Telecom industry

The new era has dawned in telecommunications has begun.

Government issued 19 Integrated Communication Operating Licences (ICOLs) this week.

That now means any one of those 19 companies will be able to offer residents cell phone, long distance, Cable TV and Internet instead of having to go to three or four different firms. 

Dr Grant Gibbons, Minister of Economic Development, said at a press conference yesterday: “This marks a major step forward in the further deregulation of the Bermuda telecoms industry.”

Dr Gibbons added: Before the issuance of ICOLS, telecommunications companies in Bermuda operated under a class licence system — Classes A, B and C –—which enabled companies to offer either landline, cell phone, internet or cable television — but not all of them. As technology continued to advance, it became clear that this system was no longer relevant or workable as companies sought to bundle services and create operational efficiencies and better pricing for consumers. The issuance of ICOLs will facilitate this process.”

He said the issuing of the new licences “is a major step towards enabling a fair and enhanced competition. And for the Bermudian public, the goal is to have the telecommunications industry provide greater choice, speed and lower prices. In Bermuda and other jurisdictions, better regulation has proven to result in economic growth, increased investment, improved quality of service, and more rapid technological innovation in the sector, which can only be good for consumers.”

Kent Stewart, chairman of the Regulatory Authority, which is overseeing the telecommunications industry, said: “For the Bermudian public, the goal is to have the telecommunications industry provide greater choice, speed and lower prices. In Bermuda and other jurisdictions, better regulation has proven to result in economic growth, increased investment, improved quality of service, and more rapid technological innovation in the sector, which can only be good for consumers.”

He said the Regulatory Authority will be handicapping firms that have “significant market power”

Mr Stewart added: “These firms are the Dominant players in Bermuda, in certain product or service areas, and so we wish to ensure that they do not abuse their Dominant positions.  This is a little bit like having a horse race with handicaps.”

He said the Authority expects to release their consultation on remedies around May 8 with a decision on remedies around July 8.

Mr Stewart said: “So, for now, dominant firms are still in the race but have some restrictions on what they can do right now until we find the right balance of remedies going forward.

So, we soon hope to see a much greater range of choice for the consumer and, we are confident, lower prices as a result of the increased competition we will have created.  I should emphasize that we are not advocating that consumers should change what they are purchasing now.  If they are comfortable with the services they currently enjoy, then that’s fine.  But consumers on the lookout for a better deal should have a much greater range of services to choose from in the months ahead.”