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 Bahamas telecommunications sector. Show all posts
Showing posts with label Bahamas telecommunications sector. Show all posts
Thursday, April 7, 2011
Tuesday, February 1, 2011
Liberalizing the Telecommunications Market in The Bahamas
Liberalizing Telecommunications
by Simon
If those who don’t know history are condemned to repeat it, those who conveniently forget or pimp history for self-serving purposes are condemned to irrelevance and being made into a running joke.
During the debate on the sale of a majority stake of BTC to Cable and Wireless, the Opposition PLP and various leaders of unions representing telecommunications workers joined forces to promote a specious reading of history, which will not look kindly on their studied amnesia and purposeful forgetfulness.
One union leader brazenly, shamelessly and wrongly compared the current debate to the struggle for majority rule, adding insult by suggesting that we are now engaged in a racial battle. More on that laughable assertion later.
Meanwhile, the formerly progressive and liberal Opposition has reinforced its reactionary, regressive and illiberal bona fides even as it pretended to be greatly concerned about “the workers” and the “national interest”.
There was something amusing if not outlandishly hypocritical as one listened to Opposition members critique the Government’s plans to privatize BTC, especially as much of the critique was broadcast via a communications landscape liberalized by successive Ingraham administrations.
ABYSMAL
The Opposition’s fevered attempt to ignore its abysmal record on telecoms and rewrite history via the broadcast media was made possible by the FNM’s progressive communications policies.
These liberalizing policies have provided considerably more democratic space and freedom for opposition parties and others to freely express their views on a more open ZNS, and on the Cable 12 and the JCN TV nightly newscasts which now compete with ZNS, and over private radio stations from Grand Bahama to Inagua.
To borrow a catchphrase, when it came to liberalizing the telecommunications sector the PLP has never missed an opportunity to miss an opportunity.
Over the 25 years of the Pindling era and the singular undistinguished Christie term, the PLP failed to liberalize the broadcast media, failed to introduce cable, now a potential competitor to BTC, failed to privatize BTC, and failed to prepare ZNS to get out of the business of competing with the private sector.
For all of the Opposition’s noise in the telecommunications market and the marketplace of progressive ideas, they have demonstrated an aversion to the market and private enterprise, except if they have a chunk or controlling interest in such enterprise.
The thread running through the PLP’s multiple failures regarding the privatization and liberalization of the telecommunications sector is more than incompetence and a late-again style, though such a slack style of governance is partly to blame.
There is a much greater force at work here that runs through many other policy disasters by the Opposition. The master culprit is an absolute need for the Opposition and its oligarchs to maintain as much control as possible on state and economic power.
The sense of entitlement to power and the nation’s economic goods, entrenched during Sir Lynden’s rule, is alive and well in an Opposition that often views governance of The Bahamas by others as illegitimate.
PARALLEL
This is why over a quarter century in government the PLP maintained the draconian state monopoly on the broadcast media. It is also the story of Bahamas Airways which is in significant ways an eerie parallel with the attempt by the Christie administration to sell BTC to the phantom company Bluewater.
The full story of Bahamas Airways must wait for another day. Still, its demise is instructive. It is a tale of a partnership with Cathay Pacific, a well-established airline with deep pockets and proven expertise that could have made The Bahamas a vibrant regional hub, provided competitive airline service to our tourist market and saved taxpayers nearly half a billion in subsidies to Bahamasair.
Yet, almost overnight, Sir Lynden wrecked Bahamas Airways by giving promised routes to one of his cronies with no expertise in the airline business. The idea was to feather the nests of PLP oligarchs while sacrificing the national interest on the altar of their greed.
Sounds familiar? Again, there are those who want Bahamians to contract historical amnesia in order to repeat their windfall profits from various assets, including those of the state.
But back to the telecoms sector. Curiously, one of the PLP’s earliest potential scandals involved a lawyer close to Sir Lynden who attempted to overcharge the then Batelco for various legal services.
Many years later, after the end of the Pindling era, Hubert Ingraham set out a vision for the liberalization and privatization of the telecommunications sector based on various principles.
Those principles included a commitment to deepening democracy by dismantling the state’s autocratic control of various media. There was also a determination to foster greater private enterprise and ownership instead of continued state monopoly.
Mr. Ingraham’s long term vision and Messrs Pindling’s and Christie’s lack of foresight and planning have surfaced in the BTC debate. That the debate may be coming to a head soon after the 44th anniversary of Majority Rule offers a useful framework for a fact-based debate on the liberalization of BTC within the context of the issue of Bahamian ownership.
REALITY
It’s not just history some vested interests want us to ignore. They are also intent on conveniently ignoring current realities. Some of that reality, rather than spin, was recently highlighted in an interview The Tribune had with Deloitte & Touche (Bahamas) managing partner Raymond Winder.
Mr. Winder noted that as a result of last year’s Columbus Communications buyout that Cable Bahamas, which is 100 percent Bahamian-owned, would be at least one fully-owned Bahamian competitor for BTC. He further noted that the main issue in the current debate should be about liberalization and not simply privatization.
In his Tribune interview, Mr. Winder advised: “Cable Bahamas has demonstrated that it’s very competitive with BTC. Since Internet came to the Bahamas, there has been upward of 20-plus companies that have tried to enter that market, and in competition between BTC and Cable, Cable probably has more than 50 per cent of that Internet market.”
Mr. Winder, the chief negotiator for the country’s accession to full membership to the World Trade Organization continued: “We’re not losing Bahamian assets, and the challenge for any investor coming into BTC is how they’re going to compete with Cable Bahamas and any other Bahamian entity in the marketplace.
The noted accountant also advised that the sale of 51 percent of BTC did not mean that the sky was falling as some Henny Pennies would have the public believe: “The fact that a foreign company owns 51 per cent is not a magic number. You can have a company holding far less than 51 per cent that still has considerable control over directors and management.”
He further advised: “What the Government is attempting to do is get out of any involvement in the telecommunications decision-making process and allow BTC to compete.”
Of course, this is a frightening idea for an Opposition that has demonstrated in the past the need for the state, in the guise of the PLP, to absolutely control ZNS, the broadcast media as well as BTC.
This divide over providing more democratic space and freedom within the PLP and indeed the country was one of the main reasons for the split of the first ever majority rule government. It pitted more than personalities. Most of the debate was over core values and a vision of greatly expanding political and economic opportunities for all Bahamians regardless of race or class.
In failing to liberalize the telecommunications sector during 30 nonconsecutive years in office, the PLP abandoned the goals of the movement for majority rule in this vital sector.
It is the FNM that has succeeded in making the progressive and liberal dream of a liberalized telecommunications sector a reality. In turn this has resulted in greater freedom of speech and expression.
It has put BTC on the path to better serving the Bahamian people with cheaper, better and quicker service as well as enabling Bahamians to own for the first time shares in the company. And, the FNM’s vision and polices have resulted in Cable Bahamas as a fully privatized telecommunications company, in which Bahamians may also own shares.
The union leader who got his racial history mixed up, as well as those who keep pimping majority rule for their own self-serving purposes are on the losing side of the debate, because the past does not accord with their checkered version of history. Moreover, the future will not reward their outdated ideas and fear of embracing a new world which is leaving them sadly behind.
bahamapundit
by Simon
If those who don’t know history are condemned to repeat it, those who conveniently forget or pimp history for self-serving purposes are condemned to irrelevance and being made into a running joke.
During the debate on the sale of a majority stake of BTC to Cable and Wireless, the Opposition PLP and various leaders of unions representing telecommunications workers joined forces to promote a specious reading of history, which will not look kindly on their studied amnesia and purposeful forgetfulness.
One union leader brazenly, shamelessly and wrongly compared the current debate to the struggle for majority rule, adding insult by suggesting that we are now engaged in a racial battle. More on that laughable assertion later.
Meanwhile, the formerly progressive and liberal Opposition has reinforced its reactionary, regressive and illiberal bona fides even as it pretended to be greatly concerned about “the workers” and the “national interest”.
There was something amusing if not outlandishly hypocritical as one listened to Opposition members critique the Government’s plans to privatize BTC, especially as much of the critique was broadcast via a communications landscape liberalized by successive Ingraham administrations.
ABYSMAL
The Opposition’s fevered attempt to ignore its abysmal record on telecoms and rewrite history via the broadcast media was made possible by the FNM’s progressive communications policies.
These liberalizing policies have provided considerably more democratic space and freedom for opposition parties and others to freely express their views on a more open ZNS, and on the Cable 12 and the JCN TV nightly newscasts which now compete with ZNS, and over private radio stations from Grand Bahama to Inagua.
To borrow a catchphrase, when it came to liberalizing the telecommunications sector the PLP has never missed an opportunity to miss an opportunity.
Over the 25 years of the Pindling era and the singular undistinguished Christie term, the PLP failed to liberalize the broadcast media, failed to introduce cable, now a potential competitor to BTC, failed to privatize BTC, and failed to prepare ZNS to get out of the business of competing with the private sector.
For all of the Opposition’s noise in the telecommunications market and the marketplace of progressive ideas, they have demonstrated an aversion to the market and private enterprise, except if they have a chunk or controlling interest in such enterprise.
The thread running through the PLP’s multiple failures regarding the privatization and liberalization of the telecommunications sector is more than incompetence and a late-again style, though such a slack style of governance is partly to blame.
There is a much greater force at work here that runs through many other policy disasters by the Opposition. The master culprit is an absolute need for the Opposition and its oligarchs to maintain as much control as possible on state and economic power.
The sense of entitlement to power and the nation’s economic goods, entrenched during Sir Lynden’s rule, is alive and well in an Opposition that often views governance of The Bahamas by others as illegitimate.
PARALLEL
This is why over a quarter century in government the PLP maintained the draconian state monopoly on the broadcast media. It is also the story of Bahamas Airways which is in significant ways an eerie parallel with the attempt by the Christie administration to sell BTC to the phantom company Bluewater.
The full story of Bahamas Airways must wait for another day. Still, its demise is instructive. It is a tale of a partnership with Cathay Pacific, a well-established airline with deep pockets and proven expertise that could have made The Bahamas a vibrant regional hub, provided competitive airline service to our tourist market and saved taxpayers nearly half a billion in subsidies to Bahamasair.
Yet, almost overnight, Sir Lynden wrecked Bahamas Airways by giving promised routes to one of his cronies with no expertise in the airline business. The idea was to feather the nests of PLP oligarchs while sacrificing the national interest on the altar of their greed.
Sounds familiar? Again, there are those who want Bahamians to contract historical amnesia in order to repeat their windfall profits from various assets, including those of the state.
But back to the telecoms sector. Curiously, one of the PLP’s earliest potential scandals involved a lawyer close to Sir Lynden who attempted to overcharge the then Batelco for various legal services.
Many years later, after the end of the Pindling era, Hubert Ingraham set out a vision for the liberalization and privatization of the telecommunications sector based on various principles.
Those principles included a commitment to deepening democracy by dismantling the state’s autocratic control of various media. There was also a determination to foster greater private enterprise and ownership instead of continued state monopoly.
Mr. Ingraham’s long term vision and Messrs Pindling’s and Christie’s lack of foresight and planning have surfaced in the BTC debate. That the debate may be coming to a head soon after the 44th anniversary of Majority Rule offers a useful framework for a fact-based debate on the liberalization of BTC within the context of the issue of Bahamian ownership.
REALITY
It’s not just history some vested interests want us to ignore. They are also intent on conveniently ignoring current realities. Some of that reality, rather than spin, was recently highlighted in an interview The Tribune had with Deloitte & Touche (Bahamas) managing partner Raymond Winder.
Mr. Winder noted that as a result of last year’s Columbus Communications buyout that Cable Bahamas, which is 100 percent Bahamian-owned, would be at least one fully-owned Bahamian competitor for BTC. He further noted that the main issue in the current debate should be about liberalization and not simply privatization.
In his Tribune interview, Mr. Winder advised: “Cable Bahamas has demonstrated that it’s very competitive with BTC. Since Internet came to the Bahamas, there has been upward of 20-plus companies that have tried to enter that market, and in competition between BTC and Cable, Cable probably has more than 50 per cent of that Internet market.”
Mr. Winder, the chief negotiator for the country’s accession to full membership to the World Trade Organization continued: “We’re not losing Bahamian assets, and the challenge for any investor coming into BTC is how they’re going to compete with Cable Bahamas and any other Bahamian entity in the marketplace.
The noted accountant also advised that the sale of 51 percent of BTC did not mean that the sky was falling as some Henny Pennies would have the public believe: “The fact that a foreign company owns 51 per cent is not a magic number. You can have a company holding far less than 51 per cent that still has considerable control over directors and management.”
He further advised: “What the Government is attempting to do is get out of any involvement in the telecommunications decision-making process and allow BTC to compete.”
Of course, this is a frightening idea for an Opposition that has demonstrated in the past the need for the state, in the guise of the PLP, to absolutely control ZNS, the broadcast media as well as BTC.
This divide over providing more democratic space and freedom within the PLP and indeed the country was one of the main reasons for the split of the first ever majority rule government. It pitted more than personalities. Most of the debate was over core values and a vision of greatly expanding political and economic opportunities for all Bahamians regardless of race or class.
In failing to liberalize the telecommunications sector during 30 nonconsecutive years in office, the PLP abandoned the goals of the movement for majority rule in this vital sector.
It is the FNM that has succeeded in making the progressive and liberal dream of a liberalized telecommunications sector a reality. In turn this has resulted in greater freedom of speech and expression.
It has put BTC on the path to better serving the Bahamian people with cheaper, better and quicker service as well as enabling Bahamians to own for the first time shares in the company. And, the FNM’s vision and polices have resulted in Cable Bahamas as a fully privatized telecommunications company, in which Bahamians may also own shares.
The union leader who got his racial history mixed up, as well as those who keep pimping majority rule for their own self-serving purposes are on the losing side of the debate, because the past does not accord with their checkered version of history. Moreover, the future will not reward their outdated ideas and fear of embracing a new world which is leaving them sadly behind.
bahamapundit
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