The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas and the Bahamas Telecommunications Company (BTC) are both urging regulators to push the Government to release its revised industry policy, noting that it is already four months late and causing increased uncertainty for sector players/investors.

The Bahamas’ leading communications companies called on the Utilities Regulation & Competition Authority (URCA) to ensure rapid production of the Government’s 2012-2015 policy for the sector, arguing that it was “critical” for all interested parties to know the Christie administration’s objectives.

Felicity Johnson, BTC’s senior vice-president for legal and regulatory affairs, wrote on the carrier’s behalf: “We would urge URCA to influence its Minister on the importance of the timely delivery of the Sector Policy, which has now been extended for a further period of three months.

“Given this administration’s recent election to office, it is critical that the parties in the sector - as well as potential investors- are informed of this administration’s vision and objectives for the sector as soon as possible.”

Ms Johnson added that BTC anticipated that the revised 2012-2015 industry policy would be released by April 5, 2013.

Given that this meant the matter would drag into the 2013 second quarter, Ms Johnson reiterated that BTC wanted “no further delays” in its issuance.

Similar concerns were echoed by Judith Smith, Cable Bahamas’ in-house legal counsel, in her response - on the company’s behalf - to URCA’s three-year strategy and draft 2013 annual plan.

Referring to the BISX-listed communications provider and its subsidiaries, Ms Smith said: “The companies are concerned about the lack of a revised Electronic Communications Sector policy for 2012-2015, and any official notification that the policy has been extended.

“We understand that it may be URCA’s view that the impetus for the policy should emanate from the responsible Minister. The policy expired in early October, and it is now four months later and no consultation with stakeholders has occurred.”

Based on BTC’s comments, it appears that there will be at least a seven-month gap between the previous Electronic Communications Sector policy’s expiration and the new one’s implementation.

Elsewhere, the Cable Bahamas and BTC responses to the URCA consultation consisted largely of the two rivals taking ‘pot shots’ at each other (see other article on Page).

BTC also questioned URCA’s plan to implement “aggressive regulation” of its cellular monopoly, suggesting that it should adopt the opposite, more relaxed, approach ahead of this market’s impending 2014 liberalisation.

Responding to the regulator’s hints that it would seek to “minimise disadvantages to consumers” that result from BTC’s existing monopoly, the newly-privatised carrier responded: “We are of the view that over the past three years, BTC has demonstrated its commitment to provide benefits to mobile and data subscribers through its numerous promotional campaigns when, in fact, there is no competition, and therefore no external forces causing BTC to act thus.

“BTC therefore questions the need for aggressive regulation in mobile. Indeed, BTC has been encouraging URCA to relax regulatory measures in anticipation of mobile competition.”

BTC and Cable Bahamas were also at odds over URCA’s plans to determine Significant Market Power (SMP) in call termination services.

The BISX-listed communications provider said this was “a low priority”, given BTC’s dominance in this area as the incumbent.

“For the time being, the relatively small shares of BTC’s competitors, their consequently higher unit costs and BTC’s considerable degree of countervailing buyer power make the need for a market review in this area a matter of third-order importance,” Ms Smith said for Cable Bahamas.

Not surprisingly, BTC disagreed. Noting this this issue had been postponed from 2011, the carrier argued that “leaving this item unattended has the potential to create disputes and impasses in the Interconnection call termination market.

“BTC’s position is that it is at significant risk, given the revision of BTC’s Reference Access and Interconnection Offer (RAIO) rates, that any further delay in addressing this critical aspect of competition could force BTC to refer to alternative sources for redress.”