The Tribune

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

CABLE & Wireless Communications (CWC) plans to invest $150 million in further building out the Bahamas Telecommunications Company’s (BTC) infrastructure over the next three years, its group chief executive said yesterday.

During a late afternoon press conference to formally announce details of the deal between CWC and the Government that will ‘allow’ Prime Minister Perry Christie to say he has regained 51 per cent majority control for the Bahamian people, Philip Bentley said: “I think this agreement strengthens our partnership with the Government.

“We have a shared vision to ensure that BTC is a key driver for economic growth in the Bahamas. We both want BTC to be the world-class telecommunication operator that the Bahamian people deserve.”

Mr Bentley noted that over $140 million has been spent over the last three years on BTC’s 4G mobile network, mobile data services, broad-band and infrastructure across the Bahama.

And, acknowledging complaints over dropped calls on BTC’s network, Mr Bentley said service “can always improve”, adding that BTC’s team was committed to ensuring that service levels improve.

Geoff Houston, BTC’s chief executive, said the company was working on a suite of new services to differentiate the company and prepare it for mobile competition, as well as competition in the fixed-line and broadband sectors.

“We have set out to improve BTC across the board to get ourselves ready for more mobile competition, and to prepare the business to take on the existing competition we have on our broadband and fixed-line,” said Mr Houston.

“We feel we have a whole suite of new services which will help differentiate and get us ready for competition. There is always work to be done, and we’re confident we’re doing the right thing

He added: “We have made a long-term commitment to the Bahamas. We always had the plan to continue investing at a high rate to ensure that we have a world-class network here in the Bahamas. We always had confidence in the Bahamas, the business and that this was a great place to invest.”

Confirming several deal details revealed by the Tribune Business yesterday, Mr Christie said CWC would grant 2 per cent of its “non-voting” shares to a foundation that will be held in trust for the Bahamian people.

Elaborating on the details of the arrangement between the Government and CWC, Mr Christie said: “This regaining of the majority economic interest in BTC will not cost the Government nor the people of the Bahamas a single penny.

“The Government has been able to to amicably secure the return of the majority economic interest in BTC without having to pay anything for it, and I should add without having to make any deals to get it done. There will be no extension of BTC’s monopoly, and no postponement of the liberalidation of the telecommunications sector.”

Describing the financial terms of the arrangement as a “win-win” for the Government and the Bahamian people, Mr Christie added: “The new foundation will also hold all of the dividends and other income, and all other economic benefits that will accrue, from ownership of the shares.

“We confidently expect that annual dividends from the required shares will be in the low seven-figure range based on historical performance. It is also of historical importance to note that the income from the required shares will not go to the consolidated fund, but will only be used for permitted purposes, namely to improve and expand the Bahamian people’s access access to, and enjoyment of, telecommunications technology throughout the Bahamas.

“Secondly, it will assist in the development of athletics and other sporting, recreational and civic activities in the Bahamas. Thirdly, it will be used to assist in the war against crime by expanding the use of CCTV as tools of law enforcement.”

The Government began face-to-face talks with CWC back in October 2012, its four-member negotiating team featuring Arawak Homes chairman Franklyn Wilson; former BTC chief executive Leon Williams; ex-Ministry of Finance legal adviser Rowena Bethel; and ex-attorney general and key confidant of Mr Christie, Sean McWeeney. CWC had purchased 51 per cent of BTC back in April 2011.