The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

CABLE Bahamas has been urged by consumers to reduce its internal costs before seeking a 27 per cent increase in the price of its basic cable TV service.

Consumers voiced their disapproval over the proposed increase for its basic cable television package during the Utilities Regulation and Competition Authority’s (URCA) final town meeting on the issue at the Town Centre Mall on Tuesday night.

Geneo Turnquest said: “I know whatever happens in a company internally, it eventually affects the external. I have had the privilege in managing small operations, and one thing you want to really do in terms of running an operation is controlling your costs.

“The issue of Cable Bahamas asking for more money could be because of something they are doing internally. In a business, stationary is something that goes a little bit unnoticed but can be costly in terms of keeping your business afloat.

“I have been a customer of Cable Bahamas for sometime, but I discontinued my service in 2010. Every month I still get a statement saying that I have zero balance, and in that envelope is another envelope that is available for you to mail back your cheque. I’m just one person. How many others are getting these on a regular basis for a whole year?” Mr Turnquest questioned.

“As a company they have to decide how many persons are really utilising those envelopes. I’m still getting letters in colour, in big bold print. This cost is going to be transferred on to the consumer. What I’m saying is don’t pass these costs on to the Bahamian consumers. They should look at more of their internal costs to see wherever else there is wastage there is before they come asking the Bahamian people for a 27 per cent increase.”

Jeremiah Jones said: “There are many things that Cable Bahamas can look inside the company to see what they can do to reduce their operational costs.

“When Cable Bahamas went fully digital, Cable Bahamas made an increase. Every television in every home had to have a digital box. If you did not own the box you had to pay rental fees for the box; Cable Bahamas was making an increase.

“What is the overhead cost to send an electronic signal? I am paying for continuous service but their policy is such that my service can be interrupted for three days with no credit to my account. Every time my service is interrupted, Cable Bahamas is making an increase.”

Rodney Taylor said: “I’m trying to figure out what the reasoning for the $8 increase is, because whatever we are getting now we are paying for. If we want extra channels we have to pay for it. What I really see is greed at the end of the day.”

Chara Sweeting questioned whether URCA was really serving the interest of the Bahamian people. “At the end of the day, we should not even be entertaining this because we are all still having a tough time financially,” she added.

“If I go into basics and go to the 200s, 300s and 400s, they are all the same channels. What are they asking for an increase for? If they are going to add something to that I could understand that, but apart from that, no.

“Everyone talks about the digital boxes but they also charge $15 for the remote controls to be replaced. When we talk about increases, we have to look at all the hidden charges. At the end of the day we will understand who URCA is really representing.”

URCA’s chief executive, Kathleen Riviere-Smith, responded by saying: “URCA was established as an independent regulator with multiple functions and roles. URCA has multiple stakeholders, one being the Government.

“The Government sets the policy and URCA is mandated to implement it. URCA also has an obligation to protect consumers. URCA has a responsibility to create an environment for sustainable competition.”