The Tribune

By DANA SMITH

Tribune Staff Reporter

dsmith@tribunemedia.net

CABLE Bahamas is seeking to raise the price of its basic cable package by nearly 30 per cent, prompting the Utilities Regulation and Competition Authority to call on Bahamians to weigh in on the proposed increase.

At a press conference yesterday, URCA also challenged Cable Bahamas’s compliance with regulatory standards that requires Cable to provide “affordable basic television services” to the country.

According to Kathleen Smith, URCA’s Chief Executive Officer, Cable Bahamas submitted an application for a price increase to its SuperBasic television package – now known as RevTV Prime – on December 1 last year.

As the package is a price regulated service, Cable must receive URCA’s prior written approval before any price changes can be made to that service, Mrs Smith explained.

The proposed price increases are from $30 to $38 for residential customers – an $8 or 27 per cent increase, and from $50 to $63.50 for business customers – a $13.50 or 27 per cent increase.

Cable Bahamas, Mrs Smith said, pointed out to URCA that the cost of living has increased by 37 per cent since 1995 – when Cable Bahamas was established – and the reason for the price increase is because programming costs have also “increased significantly” over the years with huge increases being experienced in more recent years.

“Today, URCA launches a public consultation on Cable Bahamas’ price increase application,” Mrs Smith continued. “URCA has a duty to consult on matters that are of public significance and URCA deems this application for a price increase by Cable Bahamas to be a matter of public significance.

“Therefore, URCA has to allow persons with sufficient interest, or whose interest may be materially adversely affected by any regulatory measure to be issued to URCA, an opportunity to comment on the proposed regulatory measure. URCA has a duty to give due consideration to all comments received prior to introducing any regulatory measure, in this case being URCA’s decision on Cable Bahamas’ price increase application.”

Stephen Bereaux, URCA’s Director of Policy and Regulation, said that Cable Bahamas’s price application “raised significant concerns for URCA” in relation to its impact on “the affordability of necessary television service” in the country – particularly in relation to residential consumers.

He explained this “significant concern” is due to Cable wanting to increase the price of its basic cable service by $8 for Bahamian residences but apparently offers no cheaper alternative.

“The Communications Act designates Cable Bahamas as a universal service provider and requires it to provide ‘affordable basic television services to all populated areas in The Bahamas’,” Mr Bereaux said. “Information provided to URCA by Cable Bahamas and collected by URCA from other sources, suggests that Cable Bahamas is not currently meeting this obligation.”

“Although Cable Bahamas, in cooperation with BTC, provides free of charge a six channel package in several of the family islands, which in URCA’s view meets its obligations in those islands, persons in New Providence and on other islands where REVTV Prime is available, do not have access to a basic television service at affordable prices.”

As RevTV Prime is the most affordable package offered by Cable Bahamas, the affordability issue that URCA is “grappling with” in relation to the application, Mr Bereaux explained, “is that in the absence of compliance by Cable Bahamas with the obligation to provide affordable basic television services to all populated areas and specified institutions in The Bahamas, there is no lower-priced, more affordable, package available to those existing or potential customers who cannot afford an $8 – 27 per cent – increase in the price of RevTV Prime, or the current price of $30 for that matter.”

URCA believes because of the absence of “over the air” television transmissions in the country, aside from ZNS – which is only available in New Providence, services provided by Cable Bahamas serve “an important, even critical, public need for information,” Mr Beraux said.

“URCA believes that it is for this reason that the obligation to provide a basic six-channel television service is placed on Cable Bahamas in the Communications Act,” he continued. “This is also why, in the absence of that obligation being met, URCA believes that affordability must be considered as part of its review of CBL’s application to increase the price of RevTV Prime service.”

The beginning of the “public consultations” on Cable Bahamas’s proposed price increase officially began yesterday and will end next month on October 19 at 5pm.

Mrs Smith said URCA will withhold any decisions on the application until the completion of the consultation process – which will consist of a series of town meetings throughout the country.

“In order to ensure that this public consultation facilitates a high level of public dialogue and participation, URCA will be taking its message throughout New Providence and the Family Islands through various mediums,” she said.

“URCA will be conducting several public forums, town meetings, and media appearances in several islands in The Bahamas to provide relevant information and generally to make itself available for discussion and comment on this application during the consultation process.”

The first meeting will take place next Tuesday, September 11, at 6.30pm at the Holy Cross Anglican Church Hall on Soldier Road.

Copies of the consultation document can be obtained via URCA’s official website www.urcabahamas.bs or collected from URCA’s office at the UBS Annex Building on East Bay Street, Nassau.

Formal comments can also be submitted in writing to P O Box N-4860, Nassau, Bahamas; e-mailed to info@urcabahamas.bs; faxed to 242-393-0153; or hand delivered to URCA’s office.