Those In Opposition to a Deal
The Bahama Journal Editorial
There are times in life when principle kicks in and when you do what you must do based on what conscience dictates.
Today we reiterate our opposition to what seems a deal well on its way toward being signed, sealed and delivered.
If things go as the current administration has planned, Cable and Wireless will – in short order – take possession of the majority stake in the Bahamas Telecommunications Corporation.
Clearly, then, this will not be the end of the matter concerning this corporation, Cable and Wireless and all of what went into making this deal a signed reality.
As the public has been told, there will be continuing opposition to the deal by Her Majesty’s Loyal Opposition and from any number of unions.
Opposition Leader Perry Christie has already indicated that [in the event that his party prevails in the next general elections] he would renegotiate the terms of the BTC sale.
This is his and their right.
In addition, some of the unions are adamant that there should be no deal; with one union leader grandly proclaiming that he and his followers are preparing to make of Rawson Square and its environs some sort of Little Egypt.
While hyperbole might have its place in social life; we counsel caution when it comes to making pronouncements that might be construed as being of an incendiary nature.
There is today every likelihood that, this issue will continue to be debated, mulled and chewed over as part of whatever passes for debate preceding that date when the Bahamian people will vote in free and fair elections.
In and of itself, this is all part of the way we do things in a democratic, law-abiding nation; A deal is a deal and as some of us know, a deal becomes a very real deal once it is signed, sealed and delivered.
The details of the memorandum of understanding (MOU) between the government and Cable & Wireless Communications (CWC) for the sale and privatisation of the Bahamas Telecommunications Company (BTC) has [ finally] been revealed by Prime Minister Hubert Ingraham.
As we also know, the government is on tap to sell 51 per cent of BTC to CWC for $210 million. Barring some perfectly unforeseen occurrence, this deal will be consummated.
Whether it should be so completed is another question altogether, or as it might be put colloquially, this aspect of the matter is surely a horse of a different colour.
As regards the deal that will be consummated, there is now agreement as regards how C&W will work with the government and the management of BTC to finalize a business plan for BTC; this as movement is made towards addressing its plan for the modernization of telecommunications throughout The Bahamas.
This deal should have been dealt with differently. In addition, we are absolutely convinced that the Bahamian people [private and public] should have been allowed to retain majority control of BTC.
We know that we are not alone in this view.
As we counseled on another occasion, "… all Bahamians who are patriots should rise – as if they were one man- in opposition to any deal that would deny the Bahamian people majority control of entities such as BTC…"
Indeed, like so very many other Bahamians who disagree with the current administration’s on that matter which involves giving Cable and Wireless a 51% per cent stake in BTC, we do so based on our studied conclusion that this deal is not in the best interests of either BTC or the Bahamian people.
We rush to assure the public that our difference with the current administration has next to nothing to do with any position that might seem to be –at least on first blush- barking up the same tree.
That other Bahamians are so minded only reminds us that, there are times in life when an administration can be out of touch with a socially [and perhaps, politically significant bloc of opinion.
While some who oppose the deal may be doing so because they fear some of its implications and ramifications, moving forward, we are where we are based on principle.
In the ultimate analysis, then, this is as good as any a basis on which we wish to stand firm.
Out of firmness comes character.
February 10, 2011
The Bahama Journal Editorial
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Saturday, February 12, 2011
Friday, February 11, 2011
What's the exact amount (net) that represents the proceeds of the sale of Bahamas Telecommunications Company (BTC)?
What are we getting and what were we paid for BTC?
thenassauguardian editorial
The deal is done. It is finished. The Bahamas Telecommunications Company or at least the majority of BTC, 51 percent, has been sold to Cable & Wireless Communications and The Bahamas will soon be a part of the LIME telecommunications network.
On the surface, it would appear that for dispensing with 51 percent of BTC, Bahamians could expect to receive, over time, the following features which presumably the existing Bahamian management and staff of BTC are unwilling or unable to deliver:
• expanded services for smart phones (Blackberry, iPhones) at “reasonable” prices and faster mobile services to deliver music and television to handsets;
• increase in the number of places Bahamians can go to receive phone services;
• purchase pre-connected phones at retail outlets;
• standard prices for daily cellular services and no more long distance charges for calls made locally;
• better roaming and faster broadband services;
• more connectivity for the Family Islands and more efficient services for small- and medium-sized businesses;
• easier to understand billing services and up to 36 percent reduction in costs per minute over the next three years; and
• spending on community projects including support for Junkanoo; a “center for excellence”; opportunities for Bahamians to work in the rest of the Caribbean (movement of labor has arrived); and increased services to our major economic sectors, tourism and banking.
In addition to the improved services on our existing network, CWC will reportedly pay to the government $210 million plus another $7 million in stamp duties for 51 percent of BTC.
Should we deduct from that figure the unknown amount of net cash value in excess of $15 million at the date of sale that CWC is allowed to take out of BTC?
Should we also deduct the $39 million that the government (Bahamian taxpayer) has agreed to place in the “Feeder Trust” which would presumably cover the shortfall in BTC’s existing pension plan?
It would be useful and enormously transparent if someone would let the public know the exact amount (net) that represents the proceeds of the sale of BTC.
And while you are at it, let us know how the Treasury will fare in future without the $96 million in dividends paid to it by BTC in 2009, if we are to accept a recent report published in the local press.
We would be among the first to agree that there is a need to improve the services performance of BTC but we find it difficult to accept that the above list of services cannot be provided by the Bahamian workforce.
We find it equally difficult to accept that the best way to improve services would be to sell the majority of shares to a regional carrier which, in addition to collecting two percent of total revenue for its intellectual property (despite being the majority owner) would most likely make all major decisions involving the local company in its far-away regional headquarters in the Caribbean. A regional carrier would most likely remit much-needed foreign exchange out of the country in the form of dividends and profits.
And above all, we most certainly hope that our Caribbean friends, who may hold equity (shares) in LIME are not indirectly holding shares in BTC before Bahamian residents are allowed to do so.
2/10/2011
thenassauguardian editorial
thenassauguardian editorial
The deal is done. It is finished. The Bahamas Telecommunications Company or at least the majority of BTC, 51 percent, has been sold to Cable & Wireless Communications and The Bahamas will soon be a part of the LIME telecommunications network.
On the surface, it would appear that for dispensing with 51 percent of BTC, Bahamians could expect to receive, over time, the following features which presumably the existing Bahamian management and staff of BTC are unwilling or unable to deliver:
• expanded services for smart phones (Blackberry, iPhones) at “reasonable” prices and faster mobile services to deliver music and television to handsets;
• increase in the number of places Bahamians can go to receive phone services;
• purchase pre-connected phones at retail outlets;
• standard prices for daily cellular services and no more long distance charges for calls made locally;
• better roaming and faster broadband services;
• more connectivity for the Family Islands and more efficient services for small- and medium-sized businesses;
• easier to understand billing services and up to 36 percent reduction in costs per minute over the next three years; and
• spending on community projects including support for Junkanoo; a “center for excellence”; opportunities for Bahamians to work in the rest of the Caribbean (movement of labor has arrived); and increased services to our major economic sectors, tourism and banking.
In addition to the improved services on our existing network, CWC will reportedly pay to the government $210 million plus another $7 million in stamp duties for 51 percent of BTC.
Should we deduct from that figure the unknown amount of net cash value in excess of $15 million at the date of sale that CWC is allowed to take out of BTC?
Should we also deduct the $39 million that the government (Bahamian taxpayer) has agreed to place in the “Feeder Trust” which would presumably cover the shortfall in BTC’s existing pension plan?
It would be useful and enormously transparent if someone would let the public know the exact amount (net) that represents the proceeds of the sale of BTC.
And while you are at it, let us know how the Treasury will fare in future without the $96 million in dividends paid to it by BTC in 2009, if we are to accept a recent report published in the local press.
We would be among the first to agree that there is a need to improve the services performance of BTC but we find it difficult to accept that the above list of services cannot be provided by the Bahamian workforce.
We find it equally difficult to accept that the best way to improve services would be to sell the majority of shares to a regional carrier which, in addition to collecting two percent of total revenue for its intellectual property (despite being the majority owner) would most likely make all major decisions involving the local company in its far-away regional headquarters in the Caribbean. A regional carrier would most likely remit much-needed foreign exchange out of the country in the form of dividends and profits.
And above all, we most certainly hope that our Caribbean friends, who may hold equity (shares) in LIME are not indirectly holding shares in BTC before Bahamian residents are allowed to do so.
2/10/2011
thenassauguardian editorial
Thursday, February 10, 2011
I'm delighted that Bahamas Telecommunications Company (BTC) will be out of the government's hands and looking forward to great things to come
I'm just delighted that BTC is sold
By Rick Lowe
If there is one policy I agree with the FNM on is their intention to divest the public corporations.
I am also glad that there does not appear to be any cronyism in their decision.
The comments like we're being re-colonised as a result of the big white bogeyman buying BTC or the government caused BTC to be like it is, or the union president being quoted as threatening to turn "The Bahamas into a small Egypt" and bear with us as we interrupt your phone service for example are simply out of step with the real world.
The racist comments aside, on the one hand the government is the problem with BTC, but they want the government to hold on to it. For what? So they can continue to interfere and hand string the corporation?
Now let's look at the third comment for a moment. Saying,'We'll turn country into small Egypt' is most inappropriate. The Bahamas is a parliamentary democracy and Bahamians do not wish to turn to a dictatorship for an example of how a country should be.
The fourth comment that Bahamians should bear with them as they disrupt the phone services that people rely on for emergencies or to make a living is nothing short of disrespectful to hard working, law abiding Bahamians throughout the country.
If I were able to bend the ear of those opposed to CWC/LIME buying a 51% stake in BTC, I would suggest that they re-group and start putting their resources and business plans together to enter the market as a cellular provider when the market is liberalised in three years.
Few of us want to resort to violence to achieve our ends in tis day and age, and besides didn't Sir Lynden figuratively lead us out of Egypt in 1967?
That's intended to be funny of course, but The Bahamas has come too far to be set back with that behaviour.
In the final, I'm delighted BTC will be out of governments hands and look forward to great things to come.
February 10, 2011
weblogbahamas
By Rick Lowe
If there is one policy I agree with the FNM on is their intention to divest the public corporations.
I am also glad that there does not appear to be any cronyism in their decision.
The comments like we're being re-colonised as a result of the big white bogeyman buying BTC or the government caused BTC to be like it is, or the union president being quoted as threatening to turn "The Bahamas into a small Egypt" and bear with us as we interrupt your phone service for example are simply out of step with the real world.
The racist comments aside, on the one hand the government is the problem with BTC, but they want the government to hold on to it. For what? So they can continue to interfere and hand string the corporation?
Now let's look at the third comment for a moment. Saying,'We'll turn country into small Egypt' is most inappropriate. The Bahamas is a parliamentary democracy and Bahamians do not wish to turn to a dictatorship for an example of how a country should be.
The fourth comment that Bahamians should bear with them as they disrupt the phone services that people rely on for emergencies or to make a living is nothing short of disrespectful to hard working, law abiding Bahamians throughout the country.
If I were able to bend the ear of those opposed to CWC/LIME buying a 51% stake in BTC, I would suggest that they re-group and start putting their resources and business plans together to enter the market as a cellular provider when the market is liberalised in three years.
Few of us want to resort to violence to achieve our ends in tis day and age, and besides didn't Sir Lynden figuratively lead us out of Egypt in 1967?
That's intended to be funny of course, but The Bahamas has come too far to be set back with that behaviour.
In the final, I'm delighted BTC will be out of governments hands and look forward to great things to come.
February 10, 2011
weblogbahamas
Dion Foulkes - Minister of Labour accuses BCPOU President Bernard Evans of promoting social unrest and seeking to destabilize the government and the economy of The Bahamas
Unions promoting 'social unrest'
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Labour minister hits out over 'small Egypt' comment
Minister of Labour Dion Foulkes has accused Bahamas Communications and Public Officers Union (BCPOU) President Bernard Evans of promoting social unrest and seeking to destabilize the government and the economy.
It came after Evans on Tuesday threatened to turn The Bahamas into a “small Egypt” as a result of the government signing a deal with Cable and Wireless Communications (CWC) to purchase a majority interest in the Bahamas Telecommunications Company.
“The security of thousands of Bahamian jobs depends on political and social stability,” Foulkes said in a statement released by the Free National Movement Communication Unit.
The labor minister urged Evans to withdraw his “offensive comment and apologize to the Bahamian people.”
But Evans said yesterday, “I will do no such thing.
“What I said was those persons in Egypt who rose up against oppression, against a dictatorial type of governance, were very peaceful in the beginning when they started. It was only [in] the latter days when the armed forces and/or proponents of (Egyptian President Hosni) Mubarak started to [have] confrontations with those persons that it became out of hand.”
On Tuesday, as he stood on the steps of the Churchill Building, Evans warned of industrial action.
“I see now the police are putting up barricades again as if they are preparing for animals, but the will of the people is the strength of the people,” he said at the time.
“I guess if The Bahamas is ready and if the government is ready to see a small Egypt, then they are going to get it.”
Yesterday, Evans added that by nature, Bahamians are very peaceful people.
“I have always been very cordial and very peaceful, so I don’t know why the minister would want to insinuate that we are trying to wreak havoc on the community or on this nation. Nothing could be further from the truth,” Evans said.
Blasting the “small Egypt” comment, Foulkes noted that many people were killed and hundreds injured in Egypt in recent weeks.
“To urge members of the BCPOU to engage in similar behavior in The Bahamas is unbecoming of a union leader,” he said.
Evans — who has been threatening industrial unrest for weeks — went a step further on Tuesday, apologizing to the Bahamian public for the disruption in services he said will come.
2/10/2011
thenassauguardian
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Labour minister hits out over 'small Egypt' comment
Minister of Labour Dion Foulkes has accused Bahamas Communications and Public Officers Union (BCPOU) President Bernard Evans of promoting social unrest and seeking to destabilize the government and the economy.
It came after Evans on Tuesday threatened to turn The Bahamas into a “small Egypt” as a result of the government signing a deal with Cable and Wireless Communications (CWC) to purchase a majority interest in the Bahamas Telecommunications Company.
“The security of thousands of Bahamian jobs depends on political and social stability,” Foulkes said in a statement released by the Free National Movement Communication Unit.
The labor minister urged Evans to withdraw his “offensive comment and apologize to the Bahamian people.”
But Evans said yesterday, “I will do no such thing.
“What I said was those persons in Egypt who rose up against oppression, against a dictatorial type of governance, were very peaceful in the beginning when they started. It was only [in] the latter days when the armed forces and/or proponents of (Egyptian President Hosni) Mubarak started to [have] confrontations with those persons that it became out of hand.”
On Tuesday, as he stood on the steps of the Churchill Building, Evans warned of industrial action.
“I see now the police are putting up barricades again as if they are preparing for animals, but the will of the people is the strength of the people,” he said at the time.
“I guess if The Bahamas is ready and if the government is ready to see a small Egypt, then they are going to get it.”
Yesterday, Evans added that by nature, Bahamians are very peaceful people.
“I have always been very cordial and very peaceful, so I don’t know why the minister would want to insinuate that we are trying to wreak havoc on the community or on this nation. Nothing could be further from the truth,” Evans said.
Blasting the “small Egypt” comment, Foulkes noted that many people were killed and hundreds injured in Egypt in recent weeks.
“To urge members of the BCPOU to engage in similar behavior in The Bahamas is unbecoming of a union leader,” he said.
Evans — who has been threatening industrial unrest for weeks — went a step further on Tuesday, apologizing to the Bahamian public for the disruption in services he said will come.
2/10/2011
thenassauguardian
Wednesday, February 9, 2011
Cable and Wireless Communications (CWC) business plan outlines 36% reduction in per-minute phone rates within three years
Lower phone rates for BTC customers
By STEWART MILLER
Guardian Business Reporter
stewart@nasguard.com
CWC business plan outlines 36% reduction in three years
BTC customers can expect to see a 36 percent reduction in per-minute phone rates within three years of Cable and Wireless Communications (CWC) taking control of the Bahamas Telecommunications Corporation (BTC), but the price reductions should commence within the first year.
Prime Minister Hubert A. Ingraham tabled the memorandum of understanding (MOU) between the government and CWC in the House yesterday, which outlined the commitments between the two parties.
During his communication, the prime minister disclosed key aspects of CWC’s five-year business plan, submitted by CWC as one of the requirements of the MOU. Several matters directly related to customer costs were addressed in the business plan.
“CWC’s plans will reduce the present rates significantly within the next three years, starting with the first year of operations here in The Bahamas,” Ingraham said, later adding, “It is not just about price reductions. It is also about value for money. We expect consumers and businesses in The Bahamas to be pleased with a new array of products and services that CWC will introduce — that is to say, more services for less cost.”
Around noon yesterday, ahead of the tabling of the MOU, the government and Cable and Wireless signed a share purchase agreement and shareholders agreement governing the terms of CWC’s acquisition of 51 percent of the shares of BTC for a consideration of $210 million plus $7 million stamp tax. During that signing, the prime minister said that the completion of the transaction is expected to occur around the end of March 2011. CWC would then take responsibility for the management and operation of BTC under terms defined in the shareholders agreement.
Under the CWC business plan, BTC customers within The Bahamas calling the Family Islands will no longer have to pay long distance charges when using a mobile-to-mobile connection. There will also be a simplification of billing schedules. The practice of charging different prices for cellular services based on the time of day the call is made will also be eliminated under the business plan.
CWC’s five-year plan also promises ‘reasonable prices’ for smartphones, such as the Blackberry, Android and iPhone. Customers using smartphones will also be able to take fuller advantage of features such as mobile banking, television, and other types of content delivery.
The plan also outlined a number of additional improvements, including better roaming arrangements, faster broadband, more connectivity, consolidated billing, Pay TV, and increased outlets to access BTC services. The prime minister said these would be delivered “while achieving an up to 36% reduction in the cost per minute of both prepaid and postpaid services over the next three years, before cellular competition begins.”
2/9/2011
thenassauguardian
By STEWART MILLER
Guardian Business Reporter
stewart@nasguard.com
CWC business plan outlines 36% reduction in three years
BTC customers can expect to see a 36 percent reduction in per-minute phone rates within three years of Cable and Wireless Communications (CWC) taking control of the Bahamas Telecommunications Corporation (BTC), but the price reductions should commence within the first year.
Prime Minister Hubert A. Ingraham tabled the memorandum of understanding (MOU) between the government and CWC in the House yesterday, which outlined the commitments between the two parties.
During his communication, the prime minister disclosed key aspects of CWC’s five-year business plan, submitted by CWC as one of the requirements of the MOU. Several matters directly related to customer costs were addressed in the business plan.
“CWC’s plans will reduce the present rates significantly within the next three years, starting with the first year of operations here in The Bahamas,” Ingraham said, later adding, “It is not just about price reductions. It is also about value for money. We expect consumers and businesses in The Bahamas to be pleased with a new array of products and services that CWC will introduce — that is to say, more services for less cost.”
Around noon yesterday, ahead of the tabling of the MOU, the government and Cable and Wireless signed a share purchase agreement and shareholders agreement governing the terms of CWC’s acquisition of 51 percent of the shares of BTC for a consideration of $210 million plus $7 million stamp tax. During that signing, the prime minister said that the completion of the transaction is expected to occur around the end of March 2011. CWC would then take responsibility for the management and operation of BTC under terms defined in the shareholders agreement.
Under the CWC business plan, BTC customers within The Bahamas calling the Family Islands will no longer have to pay long distance charges when using a mobile-to-mobile connection. There will also be a simplification of billing schedules. The practice of charging different prices for cellular services based on the time of day the call is made will also be eliminated under the business plan.
CWC’s five-year plan also promises ‘reasonable prices’ for smartphones, such as the Blackberry, Android and iPhone. Customers using smartphones will also be able to take fuller advantage of features such as mobile banking, television, and other types of content delivery.
The plan also outlined a number of additional improvements, including better roaming arrangements, faster broadband, more connectivity, consolidated billing, Pay TV, and increased outlets to access BTC services. The prime minister said these would be delivered “while achieving an up to 36% reduction in the cost per minute of both prepaid and postpaid services over the next three years, before cellular competition begins.”
2/9/2011
thenassauguardian
After Bahamas Communications and Public Officers Union (BCPOU) president Bernard Evans would have destroyed The Bahamas, what does he plan to salvage from the ruins to pass on to his children?
Union leader promises a 'small Egypt'
tribune242 editorial
YESTERDAY the Government laid on the table of the House the much anticipated agreement to sell 51 per cent of Bahamas Telecommunications Company to Cable and Wireless Communications. The transaction is still subject to parliamentary and regulatory approvals.
Opposition leader Perry Christie quickly announced that his party will not support the sale. He said the Opposition was particularly "grieved that even though the decision was made to sell, the decision was made to sell 51 per cent." To him that was "an error of judgment on the part of this government and certainly does not serve the best interests of the people of the Bahamas."
We know that Mr Christie, a lawyer, probably does not have much practical experience in the business world, but when a purchaser is so hobbled in a sale -- as is Cable & Wireless -- the vendor has to relinquish something to keep him interested in the purchase. An early snag in the negotiations was C&W's need to slash 30 per cent of BTC's 1,150 work force to put the company in a position to compete in an open market. Obviously, Mr Ingraham, fighting desperately to save BTC jobs and making it clear that his government would not tolerate any forced redundancies, had to somehow "sweeten the pie" to keep C&W at the negotiating table. Many benefits, such as very generous pensions among other perks, had to be protected for current staff.
We presume 51 per cent and the three year period of exclusivity for its cellular service had to be the bait to clinch the deal.
And yet BTC employees are screaming that government is not thinking of the Bahamian people. Maybe they have a point there. An argument can be made that in his effort to protect BTC staff, he did indeed defer many of the benefits that the Bahamian people want now for another three years. This is to protect BTC staff and give them time to decide their future.
If this had been an ordinary sale -- or even if BTC workers had become the owners of the company -- reality would have set in very quickly. They would have become business men and women overnight, and about 300 staff would have had to have been made redundant immediately for the overburdened company to survive.
We presume that 51 per cent was the price that government had to pay to protect the jobs of many ungrateful staff.
Denise Wilson, BCPOU secretary general, declared that even though some Bahamians might not understand why unions are continuing to fight the sale, "it comes down to our rights." We understand only too well why they are fighting, they are not thinking of the country, or the Bahamians who pay their salaries, their focus is solely on themselves.
As for BCPOU president Bernard Evans, despite wanting us to believe that unionists are fighting the sale for the sake of future generations, he has vowed to turn this country into a "small Egypt." Those of us who have watched television these past two weeks know exactly what that means -- destruction. And after he has destroyed the nation, what does he plan to salvage from the ruins to pass on to his children?
He talks about showing the strength of the people.
Mr Evans is fooling himself if he thinks his minority, now trying to hold the government hostage, represents the will of the majority of Bahamians.
"I want to apologise right now publicly to all of our valued customers," said Mr Evans. "Be patient with us, but needless to say that services will be affected somewhat. Be patient with us, we are fighting for a cause we believe, we know, is bigger than BTC's members and employees. We are fighting for the future of our children."
Mr Evans forgets that Bahamians have been patient will their performance for too long now. The patience of most of us has run out.
Either the Bahamas is going to forge ahead for the sake of our children, or it is going to be held back in the cesspool of inefficiency.
After Mr Evans has turned us into another Egypt and jeopardised the jobs of all Bahamians, there won't be much left for another generation.
Nor have we any patience with an unreasonable people who reject an invitation to at least sit down and have a discussion with the Prime Minister.
What should be remembered is that Prime Minister Ingraham is the elected representative of the Bahamian people, not Mr Evans or union leaders.
February 09, 2011
tribune242 editorial
tribune242 editorial
YESTERDAY the Government laid on the table of the House the much anticipated agreement to sell 51 per cent of Bahamas Telecommunications Company to Cable and Wireless Communications. The transaction is still subject to parliamentary and regulatory approvals.
Opposition leader Perry Christie quickly announced that his party will not support the sale. He said the Opposition was particularly "grieved that even though the decision was made to sell, the decision was made to sell 51 per cent." To him that was "an error of judgment on the part of this government and certainly does not serve the best interests of the people of the Bahamas."
We know that Mr Christie, a lawyer, probably does not have much practical experience in the business world, but when a purchaser is so hobbled in a sale -- as is Cable & Wireless -- the vendor has to relinquish something to keep him interested in the purchase. An early snag in the negotiations was C&W's need to slash 30 per cent of BTC's 1,150 work force to put the company in a position to compete in an open market. Obviously, Mr Ingraham, fighting desperately to save BTC jobs and making it clear that his government would not tolerate any forced redundancies, had to somehow "sweeten the pie" to keep C&W at the negotiating table. Many benefits, such as very generous pensions among other perks, had to be protected for current staff.
We presume 51 per cent and the three year period of exclusivity for its cellular service had to be the bait to clinch the deal.
And yet BTC employees are screaming that government is not thinking of the Bahamian people. Maybe they have a point there. An argument can be made that in his effort to protect BTC staff, he did indeed defer many of the benefits that the Bahamian people want now for another three years. This is to protect BTC staff and give them time to decide their future.
If this had been an ordinary sale -- or even if BTC workers had become the owners of the company -- reality would have set in very quickly. They would have become business men and women overnight, and about 300 staff would have had to have been made redundant immediately for the overburdened company to survive.
We presume that 51 per cent was the price that government had to pay to protect the jobs of many ungrateful staff.
Denise Wilson, BCPOU secretary general, declared that even though some Bahamians might not understand why unions are continuing to fight the sale, "it comes down to our rights." We understand only too well why they are fighting, they are not thinking of the country, or the Bahamians who pay their salaries, their focus is solely on themselves.
As for BCPOU president Bernard Evans, despite wanting us to believe that unionists are fighting the sale for the sake of future generations, he has vowed to turn this country into a "small Egypt." Those of us who have watched television these past two weeks know exactly what that means -- destruction. And after he has destroyed the nation, what does he plan to salvage from the ruins to pass on to his children?
He talks about showing the strength of the people.
Mr Evans is fooling himself if he thinks his minority, now trying to hold the government hostage, represents the will of the majority of Bahamians.
"I want to apologise right now publicly to all of our valued customers," said Mr Evans. "Be patient with us, but needless to say that services will be affected somewhat. Be patient with us, we are fighting for a cause we believe, we know, is bigger than BTC's members and employees. We are fighting for the future of our children."
Mr Evans forgets that Bahamians have been patient will their performance for too long now. The patience of most of us has run out.
Either the Bahamas is going to forge ahead for the sake of our children, or it is going to be held back in the cesspool of inefficiency.
After Mr Evans has turned us into another Egypt and jeopardised the jobs of all Bahamians, there won't be much left for another generation.
Nor have we any patience with an unreasonable people who reject an invitation to at least sit down and have a discussion with the Prime Minister.
What should be remembered is that Prime Minister Ingraham is the elected representative of the Bahamian people, not Mr Evans or union leaders.
February 09, 2011
tribune242 editorial
Tuesday, February 8, 2011
The Bahamas Telecommunications Company (BTC) is simply fed up with the double standard being exhibited by the Utilities Regulation & Competition Authority (URCA) in its dealing with BTC vis-à-vis Cable Bahamas
BTC blasts URCA 'double standards'
By NEIL HARTNELL
Tribune Business Editor
The Bahamas Telecommunications Company (BTC) yesterday accused the industry regulator of employing "double standards" in its approach to product unbundling, telling Tribune Business it had been "perplexed" by the decision to give Cable Bahamas until 2013 to completely untie its cable TV and broadband Internet offerings.
Marlon Johnson, BTC's vice-president of sales and marketing, told Tribune Business that the state-owned incumbent wanted to ensure there was a regulatory "level playing field" between itself and BISX-listed Cable Bahamas as Significant Market Power (SMP) operators, contrasting the "sliding scale" imposed on the latter with the requirement that it instantly unbundle its own broadband Internet offering from its phone services.
As Tribune Business revealed last week, Cable Bahamas has been given until end-2013 to complete the 100 per cent separation of its cable TV and Internet products on New Providence and Grand Bahama, something Mr Johnson yesterday described as fundamentally unfair, arguing that the BISX-listed company had not complied with its SMP obligations and should not be allowed to enter other markets.
He added that the extended time period given to Cable Bahamas to 'unbundle' those services would "stifle" consumer choice and the arrival of new competition into those markets, since for two years new and existing Bahamian customers would be required to take both services - even though they may only want one.
Describing the decision by the Utilities Regulation & Competition Authority (URCA) as "outrageous", Mr Johnson told Tribune Business: "We have been complaining for some time. We can't understand why Cable Bahamas has been given this sliding scale going on for two years, which seems to us goes against consumer choice and competition, which is URCA's primary mandate.
"If it's good for us as an SMP player in this market, it should be applied to other SMP operators. I don't think that's unreasonable. That's why this particular decision has left us perplexed.
"If everybody plays by the same rules, BTC has no objection. We want to ensure a level playing field, and that carriers with the same SMP designation and obligations are held to the same standards."
BTC, he added, was now petitioning URCA to obtain a "better understanding" of the reasons for its decision on Cable Bahamas.
BTC's argument is that while it was immediately forced to untie its broadband DSL Internet service from its phone products, Cable Bahamas has been given much greater latitude in complying with its SMP obligations, thus leading to its charge that the latter is getting off 'lightly', while it is subject to a 'heavy-handed approach' by URCA.
Tribune Business reported on Friday that Cable Bahamas had to complete the 'unbundling' of its cable TV and Internet products at 20 per cent of its New Providence nodes, plus 10 per cent of its Grand Bahama nodes and 15 per cent of those in Abaco and Eleuthera, by end-2010. It successfully met this, enabling it to meet the SMP obligations.
Cable Bahamas has to complete unbundling at 45 per cent of New Providence nodes by end-December 2011, achieving 75 per cent by end-2012 and 100 per cent at end-December 2013.
On Grand Bahama, the 2011 target is 30 per cent, with the 2012 and 2013 thresholds 70 per cent and 100 per cent. For Eleuthera and Abaco, the job is supposed to be 50 per cent complete this year, and concluded in 2012.
Mr Johnson yesterday told Tribune Business that while Cable Bahamas was the "dominant player" in broadband Internet, for two years a significant number of Bahamians would also be forced to take its cable TV services to access this product, even though they may not want the latter. This, he added, "stifles" competition in both markets.
BTC, Mr Johnson said, had to spend significant "man hours and money" on unbundling its own products, something it accepted it had to do.
"We're perplexed and cannot understand the rationale," he told Tribune Business, adding that the situation gave BTC "pause" before it looked at expanding into other markets it was not already in.
"Our prominent concern is that there is equitable treatment based on the standards implemented by URCA itself, he told this newspaper.
In a statement, Mr Johnson said: "We find it impossible to find even a remotely digestible justification for this ruling on the part of URCA. It is wholly inconsistent with URCA's stated mandate in respect of customer choice and its precedents in respect of the treatment of companies with significant market power (SMP) within the Bahamas.
"Simply put: It is outrageous! What is happening is that Cable Bahamas has been granted an additional two years to ensure that any one of its customers can buy Internet services from that company [has] to buy cable television services .
"At the same time, the regulator some two years ago insisted that BTC separate its Internet service from basic phone service - a requirement that BTC complied with. Why the double treatment? Why must those consumers who only want Internet service be forced to buy cable television service from Cable Bahamas, while at the same time BTC is forced to provide its Internet and telephone services separate and apart. It is an egregious decision.
"While URCA accepts that Cable Bahamas maintains SMP in the provision of basic Internet service, the regulator has willingly been complicit in permitting Cable Bahamas to use this position to force its customers to buy a television service that the customer may not want.
"This is not fair to those consumers who only want to buy a single service, nor does it help develop the market place for broadcast television. Hard as we try, we cannot find a single solitary angle that would give justification to this action."
Mr Johnson added: "It is our view that the provisions in the regulatory regime suggest that BTC and the other licensed operators should have been given the opportunity to assess the impact of the generous concession granted to Cable Bahamas with respect to the untying of its broadband service from pay television while it was still in the draft stage.
"Why is it that BTC and other operators in the market did not have an opportunity to respond to these incredibly generous allowances to the dominant player in the broadband and broadcast television market?"
And Mr Johnson said: "BTC is simply fed up with this double standard being exhibited by URCA in its dealing with BTC vis-à-vis Cable Bahamas. We both have reasonably been deemed dominant players in the various segments of our market, and with that has come the Significant Market Player [SMP] designations and obligations. "And while BTC has expended significant resources to date in its efforts to comply with its SMP obligations, it seem pretty clear to us that Cable Bahamas has been given a free ride, despite the fact that they had and have fewer obligations to satisfy the regulatory when compared to BTC."
February 08, 2011
tribune242
By NEIL HARTNELL
Tribune Business Editor
The Bahamas Telecommunications Company (BTC) yesterday accused the industry regulator of employing "double standards" in its approach to product unbundling, telling Tribune Business it had been "perplexed" by the decision to give Cable Bahamas until 2013 to completely untie its cable TV and broadband Internet offerings.
Marlon Johnson, BTC's vice-president of sales and marketing, told Tribune Business that the state-owned incumbent wanted to ensure there was a regulatory "level playing field" between itself and BISX-listed Cable Bahamas as Significant Market Power (SMP) operators, contrasting the "sliding scale" imposed on the latter with the requirement that it instantly unbundle its own broadband Internet offering from its phone services.
As Tribune Business revealed last week, Cable Bahamas has been given until end-2013 to complete the 100 per cent separation of its cable TV and Internet products on New Providence and Grand Bahama, something Mr Johnson yesterday described as fundamentally unfair, arguing that the BISX-listed company had not complied with its SMP obligations and should not be allowed to enter other markets.
He added that the extended time period given to Cable Bahamas to 'unbundle' those services would "stifle" consumer choice and the arrival of new competition into those markets, since for two years new and existing Bahamian customers would be required to take both services - even though they may only want one.
Describing the decision by the Utilities Regulation & Competition Authority (URCA) as "outrageous", Mr Johnson told Tribune Business: "We have been complaining for some time. We can't understand why Cable Bahamas has been given this sliding scale going on for two years, which seems to us goes against consumer choice and competition, which is URCA's primary mandate.
"If it's good for us as an SMP player in this market, it should be applied to other SMP operators. I don't think that's unreasonable. That's why this particular decision has left us perplexed.
"If everybody plays by the same rules, BTC has no objection. We want to ensure a level playing field, and that carriers with the same SMP designation and obligations are held to the same standards."
BTC, he added, was now petitioning URCA to obtain a "better understanding" of the reasons for its decision on Cable Bahamas.
BTC's argument is that while it was immediately forced to untie its broadband DSL Internet service from its phone products, Cable Bahamas has been given much greater latitude in complying with its SMP obligations, thus leading to its charge that the latter is getting off 'lightly', while it is subject to a 'heavy-handed approach' by URCA.
Tribune Business reported on Friday that Cable Bahamas had to complete the 'unbundling' of its cable TV and Internet products at 20 per cent of its New Providence nodes, plus 10 per cent of its Grand Bahama nodes and 15 per cent of those in Abaco and Eleuthera, by end-2010. It successfully met this, enabling it to meet the SMP obligations.
Cable Bahamas has to complete unbundling at 45 per cent of New Providence nodes by end-December 2011, achieving 75 per cent by end-2012 and 100 per cent at end-December 2013.
On Grand Bahama, the 2011 target is 30 per cent, with the 2012 and 2013 thresholds 70 per cent and 100 per cent. For Eleuthera and Abaco, the job is supposed to be 50 per cent complete this year, and concluded in 2012.
Mr Johnson yesterday told Tribune Business that while Cable Bahamas was the "dominant player" in broadband Internet, for two years a significant number of Bahamians would also be forced to take its cable TV services to access this product, even though they may not want the latter. This, he added, "stifles" competition in both markets.
BTC, Mr Johnson said, had to spend significant "man hours and money" on unbundling its own products, something it accepted it had to do.
"We're perplexed and cannot understand the rationale," he told Tribune Business, adding that the situation gave BTC "pause" before it looked at expanding into other markets it was not already in.
"Our prominent concern is that there is equitable treatment based on the standards implemented by URCA itself, he told this newspaper.
In a statement, Mr Johnson said: "We find it impossible to find even a remotely digestible justification for this ruling on the part of URCA. It is wholly inconsistent with URCA's stated mandate in respect of customer choice and its precedents in respect of the treatment of companies with significant market power (SMP) within the Bahamas.
"Simply put: It is outrageous! What is happening is that Cable Bahamas has been granted an additional two years to ensure that any one of its customers can buy Internet services from that company [has] to buy cable television services .
"At the same time, the regulator some two years ago insisted that BTC separate its Internet service from basic phone service - a requirement that BTC complied with. Why the double treatment? Why must those consumers who only want Internet service be forced to buy cable television service from Cable Bahamas, while at the same time BTC is forced to provide its Internet and telephone services separate and apart. It is an egregious decision.
"While URCA accepts that Cable Bahamas maintains SMP in the provision of basic Internet service, the regulator has willingly been complicit in permitting Cable Bahamas to use this position to force its customers to buy a television service that the customer may not want.
"This is not fair to those consumers who only want to buy a single service, nor does it help develop the market place for broadcast television. Hard as we try, we cannot find a single solitary angle that would give justification to this action."
Mr Johnson added: "It is our view that the provisions in the regulatory regime suggest that BTC and the other licensed operators should have been given the opportunity to assess the impact of the generous concession granted to Cable Bahamas with respect to the untying of its broadband service from pay television while it was still in the draft stage.
"Why is it that BTC and other operators in the market did not have an opportunity to respond to these incredibly generous allowances to the dominant player in the broadband and broadcast television market?"
And Mr Johnson said: "BTC is simply fed up with this double standard being exhibited by URCA in its dealing with BTC vis-à-vis Cable Bahamas. We both have reasonably been deemed dominant players in the various segments of our market, and with that has come the Significant Market Player [SMP] designations and obligations. "And while BTC has expended significant resources to date in its efforts to comply with its SMP obligations, it seem pretty clear to us that Cable Bahamas has been given a free ride, despite the fact that they had and have fewer obligations to satisfy the regulatory when compared to BTC."
February 08, 2011
tribune242
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