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
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 Internet service Bahamas. Show all posts
Showing posts with label Internet service Bahamas. Show all posts
Tuesday, February 8, 2011
Wednesday, December 15, 2010
Consumer Voices Bahamas (CVB) defends Cable & Wireless Communications (CWC) acquisition of Bahamas Telecommunications Company (BTC)
New consumer advocacy group defends BTC acquisition
By Stewart Miller
Guardian Business Reporter
stewart@nasguard.com
A new voice is crystallizing to ensure that consumers do not go unheard beneath the roar of politicians, employees and unions over the sale of 51 percent of the Bahamas Telecommunications Company (BTC) to Cable & Wireless Communications.
Officials of the new consumer advocacy group Consumer Voices Bahamas (CVB) chose historic Fox Hill Park to present themselves and their case to The Bahamas yesterday, defending CWC’s acquisition of BTC as being best for Bahamian consumers.
“We believe... that as the employees are important to this, the consumers are equally important to the sale of BTC,” Marlene Minus, chairperson of CVB said. She added that it is the consumers “who are paying the high prices for cellular services, who are experiencing the inconsistencies in their service, and in some cases experiencing disruptions in both their cellular and their Internet service.”
CVB is prepared to use the Internet, other forms of media, public meetings and demonstrations to tout the consumer benefits related to BTC having an international strategic partner, according to Minus. She also said that CVB would not be intimidated from their declared purpose to promote and advance the interests of the Bahamian consumer.
“Should this initiative be met with conflict, slander or disdain from union members or union leaders, we understand that, we respect that and in some cases we expect that,” the chairperson said. “But we are not afraid. We are consumers, we are Bahamians, and we believe we have a voice. So we are here to say that from a consumer perspective we believe this is good.”
Minus said that its managerial and technical expertise, along with Cable & Wireless’ international connections, would ensure better and more reliable services and would result in cheaper rates for cellular service, land lines and overseas calls.
Treasurer for CVB David Jordine told Guardian Business that the organization has no political ties or association, but was born out of the need to protect the interests of Bahamians.
“Based on the information that has been made public thus far it seems as if the consumer is being left out of the debate,” Jordine said. He added that a lot of politics and personalities are in the fray, but households, consumers and businesses that are affected should not be forgotten.
“When we mention consumers we also have to realize that a large base of our consumers is the business community,” said Jordine. “The Bahamas strives on tourism and the financial industry and the demand for communications in those sectors is vital to the bottom line, so it’s highly important that they take them into consideration because they represent the lifeblood of this country’s economy.
“We recognize that BTC and the employees of BTC have been doing a wonderful job and we want to express our appreciation to them, however for the customer, it’s cheeper, quicker, better -- that’s the initiative.”
The advocacy group reports membership of about 30 to 40 people presently. Minus said that a research and investigations team has already been formed to go into business houses and report findings back to the organization.
Although the BTC privatization was the genesis of CVB’s formation, Jordine said that the organization will not be limited to that issue.
“This group wishes to speak on behalf of consumers about any industry where we think that the consumer could get a more efficient service, a better price to meet thier needs,” Jordine said. Bahamians who support their position, or have any other ideas or comments are invited to contact the CVB by e-mail at cvb@hotmail.com.
CVB reported that it’s already at work investigating claims that some car repair businesses are gouging customers who are attempting to make sure their seat belts are functioning because of the enforcement of seat belt laws.
12/15/2010
thenassauguardian
By Stewart Miller
Guardian Business Reporter
stewart@nasguard.com
A new voice is crystallizing to ensure that consumers do not go unheard beneath the roar of politicians, employees and unions over the sale of 51 percent of the Bahamas Telecommunications Company (BTC) to Cable & Wireless Communications.
Officials of the new consumer advocacy group Consumer Voices Bahamas (CVB) chose historic Fox Hill Park to present themselves and their case to The Bahamas yesterday, defending CWC’s acquisition of BTC as being best for Bahamian consumers.
“We believe... that as the employees are important to this, the consumers are equally important to the sale of BTC,” Marlene Minus, chairperson of CVB said. She added that it is the consumers “who are paying the high prices for cellular services, who are experiencing the inconsistencies in their service, and in some cases experiencing disruptions in both their cellular and their Internet service.”
CVB is prepared to use the Internet, other forms of media, public meetings and demonstrations to tout the consumer benefits related to BTC having an international strategic partner, according to Minus. She also said that CVB would not be intimidated from their declared purpose to promote and advance the interests of the Bahamian consumer.
“Should this initiative be met with conflict, slander or disdain from union members or union leaders, we understand that, we respect that and in some cases we expect that,” the chairperson said. “But we are not afraid. We are consumers, we are Bahamians, and we believe we have a voice. So we are here to say that from a consumer perspective we believe this is good.”
Minus said that its managerial and technical expertise, along with Cable & Wireless’ international connections, would ensure better and more reliable services and would result in cheaper rates for cellular service, land lines and overseas calls.
Treasurer for CVB David Jordine told Guardian Business that the organization has no political ties or association, but was born out of the need to protect the interests of Bahamians.
“Based on the information that has been made public thus far it seems as if the consumer is being left out of the debate,” Jordine said. He added that a lot of politics and personalities are in the fray, but households, consumers and businesses that are affected should not be forgotten.
“When we mention consumers we also have to realize that a large base of our consumers is the business community,” said Jordine. “The Bahamas strives on tourism and the financial industry and the demand for communications in those sectors is vital to the bottom line, so it’s highly important that they take them into consideration because they represent the lifeblood of this country’s economy.
“We recognize that BTC and the employees of BTC have been doing a wonderful job and we want to express our appreciation to them, however for the customer, it’s cheeper, quicker, better -- that’s the initiative.”
The advocacy group reports membership of about 30 to 40 people presently. Minus said that a research and investigations team has already been formed to go into business houses and report findings back to the organization.
Although the BTC privatization was the genesis of CVB’s formation, Jordine said that the organization will not be limited to that issue.
“This group wishes to speak on behalf of consumers about any industry where we think that the consumer could get a more efficient service, a better price to meet thier needs,” Jordine said. Bahamians who support their position, or have any other ideas or comments are invited to contact the CVB by e-mail at cvb@hotmail.com.
CVB reported that it’s already at work investigating claims that some car repair businesses are gouging customers who are attempting to make sure their seat belts are functioning because of the enforcement of seat belt laws.
12/15/2010
thenassauguardian
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