The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Regulators have reduced the time span between when communications providers can launch ‘similar promotions’ from 120 to 90 days, after the Bahamas Telecommunications Company (BTC) complained existing restrictions were harming consumer welfare and its ability to fight competitors.

The Utilities Regulation and Competition Authority (URCA), in its review and revisions to retail pricing regulations in the Bahamian communications market, noted BTC’s demand for greater pricing flexibility.

“BTC stated that the timeframes for price changes should be realigned to reflect market conditions, as the current Rules are ‘onerous and ... slow Go-To-Market time for BTC’s products and services’, adding that this makes it difficult for BTC to respond to competitive pressure from Cable Bahamas in the fixed-line market,” URCA recalled of the incumbent carrier’s submissions.

“BTC referenced the various timeframes in the existing Rules ,and reiterated that these are ‘extremely onerous on the business’. Within its 9 May, 2013, letter to URCA, BTC commented that the cooling-off period of 120 calendar days for special offers and discounts prevented the company ‘from repeating these promotions in the marketplace, which improve consumer welfare by providing much needed savings and other benefits’.”

URCA said BTC had provided no hard evidence to show that the rules, and processes, when it came to gaining regulatory approval for permanent price changes in services delivered to Bahamian consumers were indeed ‘onerous and ... slow Go-To-Market time’.

It added: “In respect of the timeframes for permanent price changes, bundling offerings, new service introductions and withdrawal and discontinuation of services, URCA believes that these are still fit for purpose and proportionate.

“Meanwhile, URCA’s own experience suggests that the timeframes are not unreasonable. Therefore, URCA proposes not to make any revisions to the timeframes at this time.

“URCA considers that if SMP operators provide all the required information (as set out in the relevant parts of the Rules) as part of their initial application, this facilitates a timely review process by URCA.”

However, the regulator did give ground to BTC when it came to dealing with temporary promotional offerings and discounts.

“URCA’s review indicates that there is scope for streamlining the timeframes and information required for short-term price changes (promotions),” it added.

“For example, URCA proposes to reduce the period within which similar promotions cannot be launched from 120 calendar days to 90 calendar days.”