The Tribune

EDITOR, The Tribune.

While we are all distracted by debates and discussions about what we got out of the PM’s “new deal” with BTC, we seem to be missing two key points in this whole matter.

Firstly, according to the Prime Minister, this agreement cost the Bahamian people “not one red cent”.

Immediately the red flag went up in my mind because, as far as I know, there is no such thing as a free lunch.

CWC is a well established business, which did not make it this far by “giving away” shares, profits or money. 

My trepidation was confirmed when the PM announced that the Broadcasting Corporation of the Bahamas would be a beneficiary of this new arrangement. He indicated that the deal will result in “savings” for the BCB. In my mind, that is the pink elephant in the room. No doubt, this is where CWC will reap its benefit.

The government must immediately disclose the details of this arrangement. The Bahamian people deserve and demand to be told the mathematics of this deal: what is the exact shareholding in BTC since the foundation is said to have gotten “approximately” two per cent?

Further, the government must explain exactly how BCB will be “saved“ in the process. Has the new BTC foundation (which is controlled by CWC) pledged to give money to the public service broadcasting fund which is provided for in section 63 of the Communications Act?

Will there be any resulting change of control in the BCB or merger applications to URCA with respect to BTC and BCB?

Are we seeing the beginning of a privatisation of the BCB?

These are critical questions, particularly because the government made it clear that they not extend BTC’s cellular monopoly.

Since there is no extension of monopoly and no change in liberalisation of electronic communications, what did CWC get for participating in the PM’s “save face charade”?

It appears they get access to BCB. That is not a small thing considering that they will soon lose the monopoly on cellular phones and will be looking to branch into other modes of electronic communication services (such as cable television) to maintain their profit margin.

All we can do is wait and see how the cookie crumbles. No doubt URCA and other electronic communications providers are anxiously waiting to see how this unfolds to ensure that there is no anti-competitive behaviour or abuse of dominance on BTC’s part.

In the meantime, while we debate BTC 2.0, the almost “undercover” BEC privatisation talks have yet to take centre stage.

SENATOR HEATHER L HUNT

Nassau,

January 26, 2014.