The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Utilities Regulation and Competition Authority (URCA) announced yesterday that it has commenced public consultation on the communications regulator’s review of Cable Bahamas’ proposed 27 per cent increase in its monthly charge for basic cable TV service.

The BISX-listed communications operator applied for a price increase to its SuperBasic cable television service, currently marketed as its RevTv prime cable television package, last December.

The proposed increases would mean a per month price increase of $8 for residential customers and $13.50 for commercial customers. URCA executives noted that the current rates of $30 and $50 have not changed since the communications operator entered the market 18 years ago.

URCA’s director of policy and regulation, Stephen Bereaux ,said that based on the analysis of Cable Bahamas’ application it appeared as though the purpose of the requested price increase was to align the overall revenue from Cable Bahamas’ RevTv Prime service with the costs incurred in providing it.

“URCA’s key considerations in deciding whether or not to approve the application are consumer protection and ensuring that the price increase does not lead to prices above the competitive level,” said Mr Bereaux.

“URCA comprehensively reviewed the application, taking into account the information provided by Cable Bahamas, its responses to various URCA interrogatories, URCA’s research, the relevant regulatory principles and measures and other relevant obligations applicable to Cable Bahamas.”

Mr Bereaux said Cable Bahamas’ proposed increase “benchmarked reasonably”, and was “not entirely out of sync. There are some countries where it is more, some where it is less”.

Mr Bereaux said the increase was unlikely to raise anti-competitive concerns in the market place. “At the price they are proposing, another person should be able to come in and provide a competitive product. It should not prevent a barrier to competition happening in that market,” said Mr Bereaux.

He added that Cable Bahamas’ application had raised “significant concerns” relative to its impact on the affordability of necessary television services in the Bahamas, particularly in relation to residential consumers.

Mr Bereaux noted that while the Communications Act designated Cable Bahamas as a universal service provider and requires it to provide “affordable basic television services to all populated ares in the Bahamas”, information provided to the regulator by Cable Bahamas and collected from others sources suggests that the communications provider was currently not meeting this obligation.

Kathleen Smith, URCA’s chief executive, said the public consultation, which began yesterday, will conclude on October 19.

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