BTC has new owners. Time to move on
tribune242 editorial
AFTER 14 long years of starts, stops, demonstrations and a few hiccups, Bahamas Telecommunications Company is now a private company.
The much disputed sale agreement was finally signed in the Cabinet office yesterday with a prediction by the new owners that a "new era" in the Bahamas telecommunications sector is on the horizon.
Cable and Wireless Communications, a London-based worldwide communications company, now owns 51 per cent of BTC for which it paid Government $210 million in full and $14.3 million in kind and cash completion dividends from BTC.
Early this year Prime Minister Hubert Ingraham, who had said that the money was earmarked for construction of the new hospital, announced that because of the economic downturn the payment would now have to go directly to the reduction of the national debt. The new owners will be protected from predators for the next three years in which time they will prepare the company with a more efficient staff and upgraded technology to face competition -- the first in its long history.
Only three years after Alexander Graham Bell invented the telephone in 1876, telephonic communications arrived in New Providence on a limited scale. It was from this invention that Cable Beach got its name when in 1892 an undersea cable was laid from Jupiter, Florida, to New Providence, surfacing at what is now Goodman's Bay. The small police barracks was constructed nearby in 1894 and had telephone contact with its stations in Grants Town and the Eastern District.
In 1924 the Nassau Telephone directory -- measuring 8" by 41/2", less than a quarter of an inch thick with 11 pages -- had 584 subscribers. It looked like a gentleman's brown leather wallet.
In case of a fire, Bahamians called 45, the Governor's office at Government House was 1, the Attorney General's chambers were 7, the Treasury 139 and The Tribune 260.
The little book advised constant practice of eight specified rules to receive good telephone service. The final rule was to "let the telephone reflect your personality in as pleasing a manner as though you were talking face to face." The booklet closed with the warning: "Do not use the telephone during lightning storms." The directory was printed by the City Press.
Look at the Bahamas' telephone directory today with its separate edition for the yellow pages for advertising and appreciate how far we have progressed from 1924 in the world of telecommunications.
In 1938 many changes were made to the department, chief of which was the switch over from the manual dial to the automated dial system. At this time it was known as the Telecommunications Department or Telecoms.
Later it became The Bahamas Telecommunications Corporation and most recently, in preparation for privatisation, it was transformed from a corporation to a company -- The Bahamas Telecommunications Company. Over the years BTC has done well. However, the Bahamas with its limited resources has developed the company as far as it can. It now needs a strong strategic partner to give it a global footprint.
The new technology is mind-boggling with the ability to switch to cellular towers from mobile phones. These cell sites are able to transmit vast amounts of data over the airwaves -- now almost too fast for man to assimilate. It provides instant communication, the results of which one can see daily on TV as the youth of backward nations demand that their governments move into the modern age. Instant telecommunications -- Blackberrys, iPods, Facebook and Twitter -- have informed them of how the rest of the world lives, and they want to join the band.
"BTC has posted strong revenues and profits in the past largely as a result of the very lack of competition that has led to the high fees that have kept Bahamians at the mercy of a monopoly, allowing BTC to generate strong profits despite its very high operating expenses," Mr Ingraham told the House in a Communication as the privatisation debate opened. "If BTC were exposed to competition tomorrow in mobile services, it would likely not survive. There is no way it could compete with a lean and aggressive competitor entering this market with a low cost base and aggressive marketing budget.
"We need," he said, "to give Bahamians competitive communications, but at the same time we want BTC to survive and prosper as a company preserving as many jobs as we can, to be a company that Bahamians can be proud to work for, to buy from and to have an ownership stake in."
It's now time to put down the placards and help build a telecommunications network of which all Bahamians can be proud.
April 07, 2011
tribune242 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.
Showing posts with label BTC debate. Show all posts
Showing posts with label BTC debate. Show all posts
Thursday, April 7, 2011
Monday, March 28, 2011
To the Ingraham government: ...lay the whole Bluewater Ventures Ltd / BaTelCo transaction on the table of the House of Assembly so that it will be available for public scrutiny
What is the whole truth behind Bluewater?
tribune242 editorial
AFTER a 14-year search for a suitable strategic partner and a lengthy, often acrimonious debate over the past few days, BTC opens its doors today as a privately owned company. Cable & Wireless, with a sound international reputation and solid financing is the new owner. Bluewater Ventures Ltd, the choice of the PLP government, is now history leaving a trail of mystery in its wake.
When one examines details of the bids that were published, it is difficult to understand why Bluewater -- the only company not to produce financials -- was the PLP government's company of choice. Many things have been suggested. Finance Minister Zhivargo Laing considered it a "fronting" operation with Bahamians hidden in the background. Whatever it was, all that has been made public -- and much is still hidden-- suggests that it was a company hastily thrown together especially for this bidding process.
At the end of a heated exchange between Opposition leader Perry Christie, whose government pushed the Bluewater deal to a hasty conclusion, and Prime Minister Ingraham who eliminated Bluewater, Mr Ingraham accepted that Mr Christie's last gesture before he left office "was beneficial to the Bahamas."
As he put out the embers of his dying government, Mr Christie took up his pen and ended the Bluewater deal.
"I would recommend," he wrote, "that the matter not proceed any further at this time."
Mr Christie argued that as his government had been voted out of office, it was only right that the final decision on the future of BTC be left for the new government.
Reading from the records on Monday, April 30, 2007 --two days before the general election -- Mr Ingraham said the PLP Cabinet met with Prime Minister Christie's approval. Mr Christie himself was absent, and so the deputy prime minister was in the chair. Mr Obie Wilchcombe was also absent from that meeting. It was at that meeting that the decision was made to sell BTC to Bluewater.
When asked by a House member what he knew about the Bluewater transaction, Mr Ingraham said he knew of a meeting also held at the Ministry of Finance when then Minister Bradley Roberts, "Brave" Davis, lawyer for Bluewater, and a "man from Bluewater" returned to the room and said "we have a deal."
Mr Ingraham said that before the 2007 election he had announced at an FNM rally that the PLP government had sold what was then BaTelCo to Bluewater. His speculation was that at the end "they ran scared," which caused the last minute change of mind.
As our readers will recall the hand-over in 2007 from one government to the next did not go smoothly. Although the FNM became the government on May 2, it was not until May 4th that it was able to assume office.
In the meantime several ministers of the former PLP government, said Mr Ingraham, went around announcing that the Bluewater deal had been approved and recommended that the persons involved should go to the Cabinet office to get "the letter."
By then the Ingraham government was in charge. Mr Ingraham said that the Secretary to the Cabinet came to him one day to inform him that "some people" were at the office saying that they wanted "the letter" -- obviously the letter approving the sale of BaTelCo to Bluewater.
Mr Ingraham thanked Mr Christie for going to London to testify at the hearing when Bluewater was demanding to be indemnified for the loss of BaTelCo. In Bluewater's agreement with the PLP, the Ingraham government would have had to pay $2.5 million if the exclusivity clause in the agreement had been breached. To get out of the Bluewater deal, the $2.5 million penalty clause was negotiated down to $1.9 million.
Mr Ingraham argued that although Mr Christie did not attend the Cabinet meeting that approved the sale of BaTelCo to Bluewater, the fact that he had given Cabinet members permission to meet, and agreed who should chair the meeting, he could not then unilaterally rescind their decision without another meeting and discussion. Mr Christie argued that he did not change the deal, but decided that his government was at an end and suspended it.
Mr Ingraham knows, said an angered Opposition leader, that "this was a process that I was going to guarantee the integrity of -- if only because Brave Davis was the lawyer -- I was not going to allow this matter to compromise the integrity of my government under no circumstances."
In a heated moment, Mr Christie probably suggested more than he intended. Obviously, he was not happy with the deal. His behaviour at the end shows a great deal of doubt. Already he had started the hand washing process.
Bluewater was a deal made on behalf of the Bahamian people. They are entitled to know the facts -- especially why Bluewater was given so many preferential concessions.
We feel it the duty of the Ingraham government to lay the whole Bluewater transaction on the table of the House so that it will be available for public scrutiny.
March 28, 2011
tribune242 editorial
tribune242 editorial
AFTER a 14-year search for a suitable strategic partner and a lengthy, often acrimonious debate over the past few days, BTC opens its doors today as a privately owned company. Cable & Wireless, with a sound international reputation and solid financing is the new owner. Bluewater Ventures Ltd, the choice of the PLP government, is now history leaving a trail of mystery in its wake.
When one examines details of the bids that were published, it is difficult to understand why Bluewater -- the only company not to produce financials -- was the PLP government's company of choice. Many things have been suggested. Finance Minister Zhivargo Laing considered it a "fronting" operation with Bahamians hidden in the background. Whatever it was, all that has been made public -- and much is still hidden-- suggests that it was a company hastily thrown together especially for this bidding process.
At the end of a heated exchange between Opposition leader Perry Christie, whose government pushed the Bluewater deal to a hasty conclusion, and Prime Minister Ingraham who eliminated Bluewater, Mr Ingraham accepted that Mr Christie's last gesture before he left office "was beneficial to the Bahamas."
As he put out the embers of his dying government, Mr Christie took up his pen and ended the Bluewater deal.
"I would recommend," he wrote, "that the matter not proceed any further at this time."
Mr Christie argued that as his government had been voted out of office, it was only right that the final decision on the future of BTC be left for the new government.
Reading from the records on Monday, April 30, 2007 --two days before the general election -- Mr Ingraham said the PLP Cabinet met with Prime Minister Christie's approval. Mr Christie himself was absent, and so the deputy prime minister was in the chair. Mr Obie Wilchcombe was also absent from that meeting. It was at that meeting that the decision was made to sell BTC to Bluewater.
When asked by a House member what he knew about the Bluewater transaction, Mr Ingraham said he knew of a meeting also held at the Ministry of Finance when then Minister Bradley Roberts, "Brave" Davis, lawyer for Bluewater, and a "man from Bluewater" returned to the room and said "we have a deal."
Mr Ingraham said that before the 2007 election he had announced at an FNM rally that the PLP government had sold what was then BaTelCo to Bluewater. His speculation was that at the end "they ran scared," which caused the last minute change of mind.
As our readers will recall the hand-over in 2007 from one government to the next did not go smoothly. Although the FNM became the government on May 2, it was not until May 4th that it was able to assume office.
In the meantime several ministers of the former PLP government, said Mr Ingraham, went around announcing that the Bluewater deal had been approved and recommended that the persons involved should go to the Cabinet office to get "the letter."
By then the Ingraham government was in charge. Mr Ingraham said that the Secretary to the Cabinet came to him one day to inform him that "some people" were at the office saying that they wanted "the letter" -- obviously the letter approving the sale of BaTelCo to Bluewater.
Mr Ingraham thanked Mr Christie for going to London to testify at the hearing when Bluewater was demanding to be indemnified for the loss of BaTelCo. In Bluewater's agreement with the PLP, the Ingraham government would have had to pay $2.5 million if the exclusivity clause in the agreement had been breached. To get out of the Bluewater deal, the $2.5 million penalty clause was negotiated down to $1.9 million.
Mr Ingraham argued that although Mr Christie did not attend the Cabinet meeting that approved the sale of BaTelCo to Bluewater, the fact that he had given Cabinet members permission to meet, and agreed who should chair the meeting, he could not then unilaterally rescind their decision without another meeting and discussion. Mr Christie argued that he did not change the deal, but decided that his government was at an end and suspended it.
Mr Ingraham knows, said an angered Opposition leader, that "this was a process that I was going to guarantee the integrity of -- if only because Brave Davis was the lawyer -- I was not going to allow this matter to compromise the integrity of my government under no circumstances."
In a heated moment, Mr Christie probably suggested more than he intended. Obviously, he was not happy with the deal. His behaviour at the end shows a great deal of doubt. Already he had started the hand washing process.
Bluewater was a deal made on behalf of the Bahamian people. They are entitled to know the facts -- especially why Bluewater was given so many preferential concessions.
We feel it the duty of the Ingraham government to lay the whole Bluewater transaction on the table of the House so that it will be available for public scrutiny.
March 28, 2011
tribune242 editorial
Thursday, March 24, 2011
The "evil role" of the Progressive Liberal Party (PLP) in the Privatisation Process of the Bahamas Telecommunications Company (BTC) to Cable & Wireless Communications (CWC)
Maynard: BTC/CWC Issue Damaging Bahamians’ Psyche
By IANTHIA SMITH
Golden Isles Member of Parliament Charles Maynard said he believes Bahamians have been brainwashed into thinking that the deal between the Bahamas Telecommunications Company (BTC) and Cable & Wireless Communications (CWC) is more controversial than it really is.
Mr. Maynard said as much as he led off day two of debate on the BTC privatisation in the House of Assembly Tuesday afternoon.
In fact, he said it was a plan masterminded by the Progressive Liberal Party (PLP) that has obviously been working as tensions mount in the country over the pending BTC/CWC deal.
He added that ever since the government made steps to privatise the state-owned company the official Opposition has played an "evil role" in the entire process, a process he said has toyed with the minds of the Bahamian people, and that he added was more then evident at those mass rallies, motorcades and protests that grabbed the country’s attention.
"They have done considerable damage to the psyche of many Bahamians," Mr. Maynard said. "They have stirred up emotions that really didn’t need to be stirred up and I think that the worst victims are the employees of BTC.
"What I don’t understand and cannot appreciate is why would you play with the emotions of the hardworking people at BTC, why would you do that? Why would you make people feel uncertain about their futures, why would you encourage them not to meet with who could be their potential new bosses? What benefit would that have to them?"
To say that the BTC/CWC issue has drawn battle lines in the country would be an understatement.
Free National Movement (FNM) and PLP supporters, BTC union representatives and workers and the general public are either for it or against it, but whatever their position they made it known with posters, bullhorns and even blood, sweat and tears.
But according to Mr. Maynard these actions are being fuelled by the PLP who he said is "behind all of the civil unrest in the country right now."
North Andros and Berry Islands MP Vincent Peet would tell you that while he has no problem privatising BTC, however, he said he does have a problem with the lack of transparency with the process.
"It appears to me that Cable &Wireless is the only winner here," he said. "Why is there a two per cent fixed operating fee to be paid to Cable &Wireless for managing BTC?
"It is highly improper for an entity to purchase another entity and then be paid to manage that new entity. This is a guaranteed amount and they get this money even if BTC doesn’t make a cent."
Mr. Peet also accused the government of "selling Bahamians’ generational property" to CWC.
However, Montagu MP Loretta Butler-Turner was quick to shoot down that thought as she claimed she has too strong of an attachment to the country to ever stand for such a thing.
"My grandfather Sir Milo Butler fought for the rights of Bahamians and (you) dare say I, who still live among my people would come in here and sell out our birthright for the Bahamians I live with and see everyday," she said.
"I am a third generation Bahamian. I don’t have to buy the loyalty of Montagu, I live among my people I have to pass them everyday. These are people that I go to church with, went to school with, that I live with, that I work with, they know me. They don’t have to worry about their MP selling out their birthright."
The debate is expected to end on Thursday.
March 23rd, 2011
jonesbahamas
By IANTHIA SMITH
Golden Isles Member of Parliament Charles Maynard said he believes Bahamians have been brainwashed into thinking that the deal between the Bahamas Telecommunications Company (BTC) and Cable & Wireless Communications (CWC) is more controversial than it really is.
Mr. Maynard said as much as he led off day two of debate on the BTC privatisation in the House of Assembly Tuesday afternoon.
In fact, he said it was a plan masterminded by the Progressive Liberal Party (PLP) that has obviously been working as tensions mount in the country over the pending BTC/CWC deal.
He added that ever since the government made steps to privatise the state-owned company the official Opposition has played an "evil role" in the entire process, a process he said has toyed with the minds of the Bahamian people, and that he added was more then evident at those mass rallies, motorcades and protests that grabbed the country’s attention.
"They have done considerable damage to the psyche of many Bahamians," Mr. Maynard said. "They have stirred up emotions that really didn’t need to be stirred up and I think that the worst victims are the employees of BTC.
"What I don’t understand and cannot appreciate is why would you play with the emotions of the hardworking people at BTC, why would you do that? Why would you make people feel uncertain about their futures, why would you encourage them not to meet with who could be their potential new bosses? What benefit would that have to them?"
To say that the BTC/CWC issue has drawn battle lines in the country would be an understatement.
Free National Movement (FNM) and PLP supporters, BTC union representatives and workers and the general public are either for it or against it, but whatever their position they made it known with posters, bullhorns and even blood, sweat and tears.
But according to Mr. Maynard these actions are being fuelled by the PLP who he said is "behind all of the civil unrest in the country right now."
North Andros and Berry Islands MP Vincent Peet would tell you that while he has no problem privatising BTC, however, he said he does have a problem with the lack of transparency with the process.
"It appears to me that Cable &Wireless is the only winner here," he said. "Why is there a two per cent fixed operating fee to be paid to Cable &Wireless for managing BTC?
"It is highly improper for an entity to purchase another entity and then be paid to manage that new entity. This is a guaranteed amount and they get this money even if BTC doesn’t make a cent."
Mr. Peet also accused the government of "selling Bahamians’ generational property" to CWC.
However, Montagu MP Loretta Butler-Turner was quick to shoot down that thought as she claimed she has too strong of an attachment to the country to ever stand for such a thing.
"My grandfather Sir Milo Butler fought for the rights of Bahamians and (you) dare say I, who still live among my people would come in here and sell out our birthright for the Bahamians I live with and see everyday," she said.
"I am a third generation Bahamian. I don’t have to buy the loyalty of Montagu, I live among my people I have to pass them everyday. These are people that I go to church with, went to school with, that I live with, that I work with, they know me. They don’t have to worry about their MP selling out their birthright."
The debate is expected to end on Thursday.
March 23rd, 2011
jonesbahamas
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