The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemeda.net

The Utilities Regulation & Competition Authority (URCA) yesterday issued its final determination on the amendments to the Bahamas Telecommunications Company’s (BTC) Reference Access and Interconnection Offer (RAIO), setting out terms and conditions to facilitate interconnection services to other licensed mobile operators, namely NewCo.

“URCA considers it necessary and appropriate to require BTC to make certain changes to its RAIO in order to ensure that the pro-competitive conditions that are needed for competitive mobile entry are in place,” the regulator said yesterday. The regulator noted that prior to the licensing of NewCo - the second mobile operator - the services provided over the interconnection links between networks in The Bahamas were limited to those services required for competition in landline telephone services to work, and the links between those networks were designed to accommodate traffic to and from landline networks.

“URCA has reviewed the current status quo in light of the liberalisation and introduction of competition into the cellular mobile market in The Bahamas. “Based on the current relative size of the mobile market in The Bahamas, approximately 315,000 subscribers as opposed to the landline market, approximately 125,000 subscribers and the nature of cellular mobile services, the interconnection services provided by BTC to other operators will need to be changed to ensure that mobile-to-mobile services are covered,” the regulator stated. These services include for example charges related to mobile to mobile calls, SMS messages.

“URCA has determined certain key changes that will need to be made to BTC’s RAIO to ensure that the access and/or interconnection services provided by BTC meet the needs of the electronic communications market. URCA is now requiring BTC to agree in its interconnection agreement to deliver calls from NewCo subscribers/customers to its subscribers/customers, and establish the rate which will be paid by NewCo to BTC per minute of such calls. That rate, referred to as a mobile termination rate, will be 2.48 cents per minute, which means that for all calls made from a NewCo customer’s telephone to a BTC mobile customer’s telephone, NewCo will pay BTC 2.48 cents per minute. “URCA expects that a charging regime will also be implemented for calls from BTC to NewCo,” the regulator said.

URCA is also requiring BTC to agree to and to provide a direct interconnection link to its mobile network, for NewCo. “Currently all licensees providing phone services are required to interconnect with BTC’s landline network, which is separate from BTC’s mobile network. This means that for each call from a customer of another licensed operator to a telephone on BTC’s mobile network, the other licensed operator must pay a per minute transit charge to BTC to cover the use of BTC’s fixed network to deliver that call. For example, when a CBL/SRG landline customer calls a BTC mobile customer, CBL pays a per minute transit charge to BTC. This charge would be in addition to any applicable termination charge. Direct interconnection to the BTC mobile network would avoid the need to pay this charge. Because of the higher volume of calls expected as a result of mobile liberalisation, it is considered appropriate to require BTC to allow NewCo to interconnect directly to its mobile network,” URCA said, noting that the determination will also require BTC to extend the same opportunity to fixed line operators.

The regulator said yesterday that it is also requiring BTC to implement interconnection using Session Internet Protocol (SIP) technology. “This introduces IP based technology to the interconnection link which requires less equipment and allows a considerably greater volume of traffic to be sent along each interconnection link. URCA considers this appropriate because most networks in The Bahamas, and all new network equipment, use IP technology, making establishing the interconnection quicker and less costly, and the increased capacity makes it more efficient and cost effective.”

In its interconnection agreement, BTC according to the regulator is also required to deliver SMS messages from NewCo customers to its customers, to include the relevant technical specifications and parameters in its RAIO, and establishing the rate which will be paid by NewCo to BTC for such messages. “That rate, called a SMS termination rate, will be 1.4 cents per message. This means that for all SMS messages sent by a NewCo customer to a BTC customer’s telephone, NewCo will pay BTC 1.4 cents per message. URCA expects that a charging regime will also be implemented for SMS messages from BTC to NewCo.”