The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s deputy leader yesterday described Cable Bahamas’ recently-approved 27 per cent basic pay-TV price increase as “extremely generous”, arguing: “It sets a bad precedent.”

  The Utilities Regulation and Competition Authority (URCA), after a four-year wait, on New Year[s Eve granted the $8 and $14 monthly price increases for residential and business consumers, respectively, which Cable Bahamas has long sought.

    In response, K P Turnquest told Tribune Business: “It seems a bit contradictory that, on one hand, they approve the rate but seem to complain that the package is not adequate or fair for the rate granted.”

URCA had previously rejected the same 27 per cent basic TV price rise application in early 2013, on the grounds that Cable Bahamas had failed to comply with its legal obligations to provide ‘affordable basic television services to all populated areas and specified institutions’.

Cable Bahamas, though, argued that the regulator was mistaken to link its universal service obligations (USO) to the basic pay-TV price increase bid, with the BISX-listed company appealing the decision to the Utilities Appeals Tribunal (UAT).

    Mr Turnquest yesterday questioned why the regulator had disregarded the consumer feedback from the early 2015 public town meetings on Cable Bahamas’ application. “

What about the extension of service as required by the USO to areas not now currently covered? Seems to me the price increases are extremely generous at over 25 per cent, I believe,”he added.

“That is unheard of and sets a very bad precedent.  This will further put access to timely news and information out of the reach of many Bahamians at a time when they need independent and credible information to determine the future path for this country.”    

Cable Bahamas has some 70,000 customers spread across the three major islands as well as Eleuthera. URCA has made its approval conditional on Cable Bahamas fulfilling several terms and conditions, and chief among them is the requirement for the BISX-listed communications provider to submit, within 30 days, a lower late payment fee for its six-channel universal service (USO) TV package than the current $5.50 imposed on basic TV customers.

The regulator also wants Cable Bahamas to properly market its new $10, six-channel package to the 90 per cent of its customer base that will be able to choose between it and the SuperBasic package.

While it has no powers to determine the six-channel package’s line-up, URCA is “dissatisfied” with the content Cable Bahamas has selected. Apart from ZNS Channel 13 and the Parliamentary Channel, the company