The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas’ argument that its basic cable television service should not be included within its Universal Service Obligation (USO) has been rejected by regulators, although they clarified that the latter offering need not be more than six channels.

The Utilities Regulation & Competition Authority (URCA), in its statement of results/decision on the implementation of a USO regime for the Bahamian communications industry, also refuted the BISX-listed company’s position that it was “disproportionate” to require it to provide basic cable TV and Internet services to all populated areas.

Cable Bahamas, in its submissions to the consultation, argued that it was “inappropriate” to include basic cable TV as a USO obligation it had to fulfill.

It argued that providing a national television service was the responsibility of a public service broadcaster, rather than a USO, and therefore the obligation fell to the Broadcasting Corporation of the Bahamas (BCB) - not itself.

“Cable Bahamas observes there is no international precedent where television-like services are under the scope of the USO,” URCA noted.

“Notwithstanding the above, Cable Bahamas stresses that it has expended considerable financial resources to roll out basic television services to remote and sparsely populated areas (smaller Family Islands), which it began doing in cooperation with BTC through a Memorandum of Understanding (MoU) between Cable Bahamas, BTC and the Government.”

The regulator acknowledged: “Efforts undertaken pursuant to that MoU have led to substantially increased access to television services in a number of areas in the Bahamas.

“Cable Bahamas argues that the policy driver for Basic Television Services was to reach previously unserved areas, and that it was not the objective of the basic television USO service to require Cable Bahamas to provide a six-channel service in areas where consumers already have access to Pay TV services.”

While URCA had indicated Cable Bahamas’ USO package met the requirements for basic television services, the company said the product should not be confused with universal service.

In response, URCA distinguished between a national television service and public broadcasting service, saying the latter was concerned with coverage while the latter focused on content.

No geographic coverage requirement had been imposed on the BCB, though, and URCA said the Communications Act was clear in requiring that basic TV services - featuring six channels - be provided to all populated areas in the Bahamas.

As for the “disproportionate” argument, URCA said the Communications Act and regulations were clear that regulatory intervention was required to ensure universal services were provided throughout the Bahamas, given that “the benefits to society of ubiquitous coverage far outweigh the cost”.

Cable Bahamas had also raised concerns that URCA was seeking to expand the number of channels under the basic TV USO definition, but the regulator said there was no intention to increase this beyond a mandated six.

“URCA recognises that the nature of the cable television industry may not necessarily lend itself to only a six-channel offering,” the regulator said.

“For that reason, therefore, URCA, is of the view that Cable Bahamas should have some flexibility in regards to the number of channels included in the USO Basic Television Service. However, this service must comprise no less than six channels.”