U.S. backs Government in its battle against GlobalTel

By Jeannine Klein
(News from 2002-01-11 Edition)

GOVERNMENT is claiming a major victory in its push against illegal telephone call-back services.
A U.S. telecommunications licensing authority has ruled in favour of the Bermuda Government in its dispute with American call-back service provider GlobalTel.
The move comes following a complaint by Government to the Federal Communications Commission (FCC) last winter that GlobalTel was illegally operating on the island.
Call-back allows customers outside the U.S. access to U.S. based international lines by placing a signalling call to the call-back service’s switch overseas. The switch then automatically returns the call, providing the caller with a U.S. dial tone and allowing the call to be billed at U.S. rates.
Yesterday, Minister of Telecommunications, Renee Webb announced that the FCC had issued a formal letter to GlobalTel pointing out that offering such services in Bermuda was in violation of our Telecommunications Act and could be punishable by statutory penalties.
The letter stated that “… U.S. providers of callback service must operate in a manner that is consistent with the countries in which they operate.”

$50,000 fine

Any person who illegally operates a call-back service can face a fine of $50,000 or two years in prison or both.
In a press release Renee Webb, Minister of Telecommunications, described the FCC’s ruling as a “major milestone” because although call-back service is illegal in 67 countries including Bermuda, the FCC has seldom intervened in complaints made by international jurisdictions.
“It is a major milestone in that this is only one of a few cases where the FCC has intervened at all. The only other two I am aware of is Saudi Arabia and Malaysia,” said Greg Swan, Director of Telecommunications.
The FCC tends to view call-back services as a benefit to consumers and seldom steps into such disputes. Jack Dacey, international director of the FCC, told the Bermuda Sun that they intervened this time around because Bermuda satisfied all of their requirements.
“Under our international call-back policies, under certain criteria, we will seek to assist in enforcement and so the Bermuda Government asked us to do that and we notified GlobalTel over the summer that we had been informed they were violating the laws of Bermuda,” he said.
Currently, one call-back case is pending before the courts. Lawrence Elliott Lambe, the general manager of Pompano Beach Club, will face three charges on January 21.

Source: Bermuda Sun: U.S. backs Government in its battle against GlobalTel (2002-01-11)