The Tribune

The Bahamas Telecommunications Company (BTC) yesterday called for more flexible cellular pricing opportunities, as part of its preparations for the sector’s impending liberalisation in 2014.

The privatised carrier said in a statement that flexible retail price rules, set and regulated by the Utilities Regulation and Competition Authority (URCA), were esential if consumers were to benefit from the best product and service innovations on the market.

“Consumers are exposed to global standards, and they expect constant innovation and competitive pricing,” said Felicity Johnson, BTC’s senior vice-president of legal and regulatory affairs.

Ms Johnson said she was looking forward to URCA re-setting retail price rules that support a consumer driven marketplace and competitive environment.

“Every promotion we have in the mobile space is first sent to URCA for their permission,” she said.

“We are required to prepare a five-page submission rationalising why we want to reduce our prices, whether it’s a special weekend promotion, a permanent price reduction or introducing a new service. It slows the ‘go to market time’ for the business.”

“As the marketing team develops new product propositions, they have to factor in 14 to 42 calendar days for the URCA approval, depending on what price adjustments are being requested. That time does not include any response process of questions or queries, which can further stop the clock. It can become very difficult,” Ms Johnson said.

BTC frequently runs consumer-driven special promotions on the mobile side of the business, a practice that will be standard once competition enters the market. Ms Johnson said a two-week lag time could be very costly in an increasingly competitive environment.

She reiterated the “urgent” need for URCA’s review of pricing rules, which was promised by the regulator in its list of priorities for 2013. The regulator has, in part, recently taken the big step towards reversing these rules.

Concern over URCA’s retail price rules is shared by both BTC and Cable Bahamas. They both agree that the current rules make it difficult for operators to react quickly to opportunities that can benefit consumers.

Ms Johnson said the flexibility sought is more in line with the regulatory environment of modern, competitive communications markets, and would prepare the Bahamas better for liberalisation.