The Tribune

By NICO SCAVELLA

THE BTC has paid in full a $244,000 anti-competitive behaviour fine recently levied against the company by the Utilities Regulation and Competition Authority (URCA), according to Chief Executive Officer Leon Williams.

Speaking with reporters outside Government House after a press conference with One Bahamas Foundation officials, Mr Williams confirmed that the fine had been paid. He said BTC must “work smarter” to avoid fines of that nature in the future.

“We’re also paying the $850,000 utilities appeal tribunal fee,” he said. “URCA set a fee for us for $850,000. So over the last month and a half we have written some cheques in the neighbourhood of almost $1 million to URCA.

“(This) means that we have to work smarter, and that we must recognise that there is an authority up and beyond that of the company (BTC). There is a regulatory authority in the country that the laws have teeth in them, and when they give you advice and they suggest to you to modify your behaviour, then you should modify your behaviour. Otherwise there are fines.”

In July URCA determined that BTC had breached the Communications Act through the exclusive supply agreements it had reached with its phone card wholesalers, which prevented them from selling cards issued by competitors such as Cable Bahamas and its Systems Resource Group subsidiary.

Kathleen Riviere-Smith, URCA chief executive, said the decision stemmed from an April 2012 complaint to URCA by Cable Bahamas, which alleged that BTC had engaged in “anti-competitive business” that violated Sections 67 and 69 of the Communications Act.

After a detailed investigation by URCA, Mrs Riviere-Smith said it was determined that the exclusivity agreement BTC has with its master distributors breaks the law.

BTC was ordered to “cease and desist” from “any conduct or behaviour denying future market access to potential competitors in the relevant market for two-stage long distance calling cards” and was ordered to immediately amend the Master Distributors Agreement by deleting the violating provisions and submit to URCA “within 14 calendar days of the issuance of the order” a draft copy of the changed agreement for approval.

BTC was also order to pay a fine of $243,442.76 no later than 30 days after the issuance of the order. Failure to do so might have resulted in BTC receiving a further fine, not exceeding 10 per cent of the company’s relevant turnover or another penalty determined by URCA.

“This is not a new incident, this is an incident that took place almost two years ago, but it suggests that BTC did not modify its behaviour and as such URCA fined BTC for aggravation,” Mr Williams said.