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Thursday, March 28, 2024
HomeNewsArchivesVITELCO SUED FOR NEARLY $4 MILLION BY AT&T

VITELCO SUED FOR NEARLY $4 MILLION BY AT&T

AT&T of the Virgin Islands has sued the Virgin Islands Telephone Corp., charging that Vitelco failed to pass on to AT&T millions of dollars that V.I. customers paid for AT&T long distance service through Vitelco, or Innovative Telephone, as it is now called.
AT&T claims that Vitelco also overcharged it for billing customers.
In a District Court action for debt and breach of contract, AT&T said Vitelco owes it $3,621,230.81 on collections it made on October and November bills but failed to pass along to AT&T. The two companies have had an agreement since 1994 under which Vitelco bills and collects long distance charges for AT&T.
Additionally, the long distance carrier said Vitelco failed to implement a decrease in its charge for billing AT&T customers which should have gone into effect in 1997. The decrease, from 25 cents per bill to 24 cents, was an amendment to the agreement between the two companies. AT&T said Vitelco owes it $228,479.15 in overcharges.
AT&T is also seeking interest on both sums as well as court costs and attorneys' fees.
AT&T filed its suit Jan. 18. In a notice dated Jan. 19 and printed as a full-page advertisement in local newspapers, the company announced it would begin billing its long distance customers directly in March.
Last week the Virgin Islands Daily News, a sister company to Innovative Telephone/Vitelco, ran a display advertisement from Innovative saying that the company had issued a press release on Jan. 19 stating that "just as the public was advised this week, Innovative Telephone received notice of AT&T's intention to direct bill its customers for long distance services. If and when AT&T implements this plan, Innovative Telephone (formerly Vitelco) will no longer be providing billing services for AT&T. Customers who use AT&T as their long distance carrier will start receiving separate bills for local Innovative Telephone service and long distance service. Innovative Telephone cannot collect payments or respond to any inquiries about AT&T billing, calling plans, or service if and when this decision by AT&T is implemented. Innovative Telephone regrets any inconvenience that may be caused by this change, and will work diligently to mitigate any negative effects on our customers."
Innovative, owned by Jeffrey Prosser, began running advertisements earlier this month announcing it is changing the names of several of its subsidaries, including Vitel Cellular, Vitelcom, St. Thomas-St. John Cable TV and St. Croix Cable TV, all to descriptive names starting with "Innovative."
The AT&T suit does not use the new name for the defendant.

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