The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Bahamas' major communications players have united in criticism of "burdensome and intrusive" regulatory proposals that threaten to increase data gathering by "20 times".

Cable Bahamas and its Aliv affiliate, together with their Bahamas Telecommunications Company (BTC) rival, all argued that the Utilities Regulation and Competition Authority's (URCA) plans for collecting market data would increase their costs and be counter to the Communications Act's intent. URCA, which says the data requested will improve regulatory decision-making, has decided to introduce its enhanced collection measures via a phased approach. The likes of BTC, Cable Bahamas and Aliv will be required to submit information on a semi-annual basis in 2018, with quarterly reporting - URCA's ultimate goal - to start in 2019.

Cable Bahamas argued that URCA's enhanced data submission requirements went far beyond the "modest increase" proposed by the regulator just one year earlier. "Cable Bahamas is dismayed to see that the proposals in URCA's current consultation are far more burdensome and intrusive than URCA's previous proposals," the BISX-listed provider said.

"Whereas URCA's 2016 proposals would require Cable Bahamas to collect, validate and submit about 90 pieces of information per year to URCA, the current proposals would require Cable Bahamas to collect, validate and submit over 1,800 pieces of information..

"As a result, Cable Bahamas cannot support URCA's current proposals. Cable Bahamas is of the view that in increasing its data requests by 20 times, URCA has gone against the intentions of the Communications Act 2009 that there should be light touch regulation in the Bahamas."

While the Act states that its key objectives include enhancing communications industry efficiency, and fostering innovation and investment, Cable Bahamas argued that URCA's data demands would have the exact opposite effect and stifle such growth-enhancing qualities.

"URCA's new proposals will add to Cable Bahamas' cost base, thereby reducing its efficiency and diverting investment," the BISX-listed operator added, while criticising URCA's failure to conduct a 'cost-benefit' analysis of its proposals.

"Cable Bahamas considers that URCA's proposals for market data collection are neither efficient or proportionate. They impose unnecessary additional costs on operators, bring no benefits to the sector, and are excessively intrusive and labour intensive."

Not surprisingly, given that Cable Bahamas holds a 48.25 per cent stake, and both Board and management control, Aliv's 'push back' and opposition was almost identical - and even 'word for word' in some places.

"Aliv considers that URCA's proposals, which will require it to prepare, validate and submit over 1,300 pieces of information per year to URCA, are unjustified, disproportionate and a breach of the requirements of commercial confidentiality," the Bahamas' second mobile operator argued,.

"Aliv therefore urges URCA to undertake a fundamental rethink of its proposals."

The regulator even seemed to have achieved the unthinkable by uniting BTC with its major Cable Bahamas/Aliv rivals. It, too, pointed out that the Communications Act imposes a duty upon URCA to ensure that regulatory measures are efficient and transparent, and account for their impact on operators' costs.

"BTC recognises that the increased frequency of reporting of market data, and the level of dis-aggregation of data, do impose considerable costs, given that this new reporting format would require BTC to engage the services of a third party vendor in building out the appropriate systems for the generation of these reports," the carrier warned.

"Further, there is the added pressure on existing resources considering that the company is required to provide other periodic data, namely the data on Quality of Service parameters. It is important that URCA take due regard of the additional costs associated with this new reporting obligation and ensure that this intervention by way of new reporting is proportionate and fit for purpose."

BTC, too, echoed Aliv's warning that URCA's demands could lead to the disclosure of confidential, proprietary data to rivals. "The market for the provision of cellular phone services in the Bahamas is one where there are only two operators, making it very easy for one competitor to extrapolate - from data provided - the activity of the competitor," it added.

"In short, there are some competition concerns that arise for BTC in the context of this new reporting format."

Cable Bahamas and Aliv, summing up their concerns, added: "As part of its rethink of the proposals in this consultation paper, URCA should consider much more carefully the impact of its proposals on operators whose cost base is under constant pressure in a competitive market.

"Any additional cost imposed on the operators by URCA is paid by consumers in the form of higher prices to the detriment of customers and the economy of the Bahamas."

It is unclear whether URCA took the advice of its licensees, as it has yet to publish the 'statement of results' on the consultation. However, it has released a 75-page document on data reporting requirements and formats.