BTC argues VOIP before Privy Council

BTC’s attorney Dr. Lloyd Barnett explained that VoIP allows the licensee to bring in a transmission – in data form – over the Internet and convert it to voice.

BTC is seeking declarations that it has the exclusive right and use of VoIP technology and that it should be free from competition in this area.

Opposing the appeal is the Public Utilities Commission (PUC) and System Resources Group Limited (SRG).

Under the Telecommunications Act, the PUC is the regulator with power to grant licenses. It was set up to oversee the telecommunications industry and apply the Bahamas Telecommunications Sector Policy.

SRG, a Bahamian company, was granted a license by the PUC back in 2002 to operate public fixed radio-communications systems. The PUC contends that it is entitled to license both BTC and SRG to provide VoIP.

Essentially, BTC contends that the Public Utilities Commission should not have granted System Resources Group – which operates as Indigo Networks – the right to use Voice over Internet Protocol, which represents a huge chunk of SRG’s business.

On Thursday, Dr. Barnett contended that BTC’s exclusive rights to offer VoIP technology for voice telephony services should not have expired until 24 months after the sale of BTC shares to private investors.

Since the first Ingraham Administration the government has said it wanted to privatize BTC.

According to reports, Indigo Networks is heavily reliant on the use of VoIP technology for its corporate customers.

If BTC succeeds in its appeal to the Privy Council the matter is then expected to go back to the Supreme Court for a ruling on the merits of the case.

BTC wants law lords to declare that it is the only telecom carrier in The Bahamas authorized to use VoIP in the provision of voice telephony services.

Additionally, it is hoping that the Privy Council declares that the Public Utilities Commission did not have the authorization under the Telecommunications Sector Policy to allow Indigo Networks to use VoIP.

The PUC’s attorney Ferron Bethell argued on Thursday that BTC had more than six months to object to SRG’s proposed license during the public consultation process and never did so. He added that the industry was so dynamic that the commission could not hold up SRG due to legal wrangling.

According to SRG’s attorney, Brian Moree, SRG invested $4 million plus in its VoIP network. He said telling the company not to use the network would render it inefficient, forcing SRG to rely on alternative “dinosaur” equipment.

“This is all about competition. That’s what it is all really about,” Mr. Moree told the law lords Thursday.

Lord Hope of Craighead said he was grateful to the lawyers for the way in which written and oral submissions were presented.

The law lord previously noted that a ruling in each of the four cases the Privy Council heard this week is not expected to be handed down immediately.

Source: Bahama Journal

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