The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Utilities Regulation and Competition Authority (URCA) will award licences to the country’s second cellular mobile services provider soon, Prime Minister Perry Christie said during his budget communication yesterday.

He added that within three months after the licences have been granted, the provider will be obligated to provide coverage to 99 per cent of New Providence and 80 per cent of Grand Bahama.

Additionally, within six months the provider will be obligated to provide reliable service to Eleuthera, Abaco, Bimini, Andros and Exuma.

And within eight months, the provider will be obligated to provide coverage to 85 per cent of Andros, 99 per cent of Grand Bahama, Eleuthera, Abaco, Bimini and Exuma.

Within 12 months, Mr Christie said, the provider will be required to provide 99 per cent of coverage to Andros, Cat Island, Long Island, San Salvador, the Berry Islands, Inagua and Ragged Island.

And within 18 months, the provider would be required to give coverage to 99 per cent of Acklins, Crooked Island, Long Cay, Rum Cay and Mayaguana.

In October last year, Cable Bahamas Ltd (CBL) won the bid to participate in the process that would liberalise the cellular mobile market.

As such, under the government’s terms, CBL will be a minority shareholder (48.25 per cent) in a new company, NewCo, that will provide the cellular services. Another company, HoldingCo, 51.75 per cent owend by CBL, has been formed to be NewCo’s majority shareholder. Both entities will be 100 per cent Bahamian owned.

While the government is currently the sole shareholder of HoldingCo, Mr Christie said the task force on cellular liberalisation will begin “soliciting eligible investors” to take control of the company.

Those potential investors include institutions like “local pension/mutual funds” and “co-operative credit unions”, he said.

Mr Christie said the shares in HoldingCo will be offered to such institutions within the next few months.

“Such an offering will ensure that the equity ownership in HoldingCo is as widely distributed as possible so that there will be broad Bahamian ownership,” he said.

Nonetheless, he did not specify when NewCo will receive its licenses.

The government currently has a 49 per cent stake in the Bahamas Telecommunications Company (BTC), which is currently the country’s only cellular service provider.

“We understand the market and the expectations of Bahamians,” said Anthony Butler, CBL president. “The mobile service needs to be reliable, affordable and fully support applications that customers want to use, and that is what Bahamians can look forward to from us.”