The Tribune

By TANEKA THOMPSON

Tribune News Editor

tmthompson@tribunemedia.net

THREE companies have submitted proposals to obtain the country’s second mobile network provider licence, the government announced last night.

They are television and internet provider Cable Bahamas as well as local subsidiaries of international telecommunications companies, Digicel and Virgin Mobile.

Prime Minister Perry Christie said yesterday that the government is on target to announce the successful applicant in May. He told the House of Assembly that the government will initially own 51 per cent of the second mobile services provider.

He said the Cellular Liberalisation Task Force, formed last April, has drafted transaction documents to govern a partnership with the government that will allow for a 49 per cent, 51 per cent ownership split.

Speaking in the House of Assembly, Mr Christie said the government has a requirement for the new cellular company to have “broad Bahamian ownership”.

“Mr Speaker, (this) is yet another testament of my government’s commitment to ensuring that all Bahamians benefit from the economic fruits of the country and not just a select and privileged few. It is also the fulfilment of the promise made by my government in its Charter for Governance to empower Bahamians by expanding their role as investors in the Bahamian economy, including the telecommunications industry.”

Yesterday marked the deadline for companies to respond to the government’s request for proposals (RFP) process.

Cable Bahamas Ltd (CBL) released a statement on its application.

“We have really pulled out all the stops for this submission,” said Anthony Butler, CBL President and CEO, “staking our claim to become the Bahamas’ first company to offer an alternative in the market.”

The government’s selection process consists of two phases.

The first phase was the RFP, which covered a technical and financial assessment of applicants. The second phase is the spectrum auction, which will be administered by the Utilities Regulation and Competition Authority (URCA).

The successful bidder will be the one with the highest combined score in both phases.

“We understand and respect this process,” said Mr Butler, “and have concentrated very diligently on satisfying all requirements.”

The Bahamas Telecommunications Company’s (BTC) monopoly on mobile services ended last May.

Last June, Mr Christie said the government’s hands were tied until this year on the liberalisaton process following the Ingraham administration’s deal to sell the majority stake in BTC.

Specifically, the prime minister said the blocking of competition along with any preparation for competition came with the Ingraham administration’s amendment to the 2009 Electronic Communications Sector Policy. He said the policy prohibited initiating any process, including engaging URCA, to award a second cellular licence before April 6, 2014. The Communications Act 2009 did the same, he said.

On November 13, the government invited interested persons to apply to operate a second cellular network.

The government said yesterday that nine companies, both local and international, had registered for an RFP package.