The New Dawn of Telecom Regulation
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In my earlier post Bermuda Calling: Telecommunications Reform & Investment Opportunity, I described how telecommunications in Bermuda is undergoing root and branch reform with a view to not only making the industry more competitive but more attractive to investors.
The overhaul in telecommunications, following extensive consultation with stakeholders, is embodied in two key pieces of legislation, the Regulatory Authority Act 2011 and the Electronic Communications Act 2011, both of which have become the twin foundation of Bermudian Regulatory Reform in the Telecommunications sector.
Now, an update: On the 18th March 2013, Digicel issued an initial complaint to the Regulatory Authority stating that North Rock is providing bundling services and should not be doing so until Integrated Communication Operating Licenses (ICOLs) are issued. The complaint was a result of the examination of North Rock’s advertising material and flyers and their marketing campaign entitled “Blazing Bundles”.
Digicel’s complaint was that the advertising suggested that there would be discounts available for Bundled services. The Regulatory Authority examined this complaint and issued its first decision on 2nd April 2013 stating that the Authority did not find that North Rock was providing any services outside its licensed obligations and was not contravening any of the existing terms and conditions of its present license. It further found that the services advertised by North Rock on the flyer were not being offered at any discount. However, under its Consumer Affairs powers, the Regulatory Authority requested North Rock stop continuing this advertising until such time as suitable clarifications were made in the ads (including, but not limited to, print and website media).
This Regulatory skirmish was a clear example of North Rock attempting to jump the gun and package its services as bundles, something which it will be able to do, but only following the grant of the integrated communication operating License. However, the Regulatory Authority found that in fact as no discounts were being offered, there was technically no breach of the existing License under the Telecommunications Act 1986. Notwithstanding this finding, they have issued a clear warning to North Rock to curb what could be seen as misleading advertising prior to the Grant of the Integrated Communication Operating Licenses.
This marks the dawn of the practical application of the new Telecommunications Regulatory regime in Bermuda.