The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Utilities Regulation and Competition Authority (URCA) is bracing for a greatly-expanded role, with the Government expected to pass legislation giving it responsibility for supervising the Bahamian energy sector during the 2015 first quarter.

The regulator, in its annual draft plan unveiled yesterday, said it was also preparing to ultimately regulate the water industry, having been established to oversee all Bahamas-based utility industries.

“URCA is readying itself to regulate the energy sector in the Bahamas,” it said. “It is anticipated that the Government will have legislation passed in the first quarter of 2015, and that URCA will be given the authority to regulate the energy sector.

“The Government is also working on the reform of the water and sewerage sector in the country, and has engaged consultants to assist. URCA continues to work with the Government and the consultants with a view to URCA becoming the regulator for that sector in due course.”

URCA’s increased responsibilities come as it prepares to facilitate the Government’s goal of liberalising cellular communications in the Bahamas this year, and it will run the ‘auction’ where bidders compete over the price they are prepared to pay for the necessary spectrum to offer mobile services.

Describing cellular liberalisation as its “highest priority” for 2015, URCA said it was preparing to review a number of related issues in a bid to facilitate the smooth entry of market competition.

In particular, URCA said it will assess whether a regulated rate needs to be set for the termination of cell phone calls from the successful second licence winner’s clients to the Bahamas Telecommunications Company’s (BTC) network.

“Currently, BTC is the only cellular mobile operator in the Bahamas, and the retail charging regime does not require any termination charge to be paid in respect of domestic calls to mobile numbers,” URCA said.

“As such, although BTC is regulated as the SMP (significant market power) provider in cellular mobile services, BTC’s RAIO (Reference access and interconnection offer) in mobile networks does not identify a regulated termination rate, except for international calls terminating on BTC’s mobile network.

“In preparation for cellular mobile competition, URCA will consider this issue and will, if appropriate implement changes to BTC’s RAIO to address the issue.”

URCA added that it will also extend number portability to mobile communications, ensuring that BTC customers can switch to the new operator and keep the same number “from day one of competition’.

Finally, URCA pledged to review how mobile calls in the Bahamas are paid for.

“Cellular mobile services in the Bahamas provided by BTC are currently under a Mobile Party Pays (MPP) regime, which means that calls from a mobile phone are charged on the basis of Calling Party Pays (CPP),” URCA said, “but calls from a fixed line to a mobile phone are charged on a Receiving Party Pays (RPP) basis.

“During 2015, URCA will consider this issue in preparation for cellular mobile competition in order to determine whether a regulatory intervention is appropriate and, if so, what regulatory treatment would be appropriate.”