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 Telecommunications Bahamas. Show all posts
Showing posts with label Telecommunications Bahamas. Show all posts
Thursday, April 7, 2011
Saturday, February 12, 2011
We are absolutely convinced that the Bahamian people [private and public] should have been allowed to retain majority control of BTC
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
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
Sunday, May 9, 2010
Telecoms 'ripe' for increased taxation says former Chamber of Commerce president Dionisio D'Aguilar
Telecoms 'ripe' for more taxes
By NEIL HARTNELL
Tribune Business Editor:
Telecommunications is an industry "ripe" for increased taxation, a former Chamber of Commerce president yesterday urging the Government to "come up with innovative ways" to raise revenue by increasing fees on industries that paid "negligible taxes", such as banks/trust companies and the numbers business.
Suggesting that the Government impose a 1-2 per cent tax on making/receiving telephone calls, which is effectively a Bahamian national pasttime, Dionisio D'Aguilar said that if the Ingraham administration sought to raise revenues in its 2010-2011 Budget, it needed to look at fee increases that had the "least effect on the average person in the street".
Urging the Government to "come up with innovative ways to raise additional revenues", Mr D'Aguilar, who is also Superwash's president, told Tribune Business: "There are sectors of our economy that pay negligible taxes. Telecoms, that's a ripe one. Everyone pays a tax on their incoming calls. That's a totally undertaxed sector."
Mr D'Aguilar said such telecoms taxes were already levied in many other countries, and said a 1-2 per cent tax on telephone calls was "negligible to the consumer", especially since many Bahamians treated their cellular phones as a luxury.
Adding that he disagreed with fellow businessman Franklyn Wilson, who yesterday told Tribune Business that legalising gaming would result in net outflows from the Public Treasury, as a result of "gambling breeding poverty" and other adverse social consequences, Mr D'Aguilar said taxing the numbers business would raise millions of dollars per year in government revenue.
"Banks tend to be under-taxed compared to other businesses," he added. "It's a heavily under-taxed industry" compared to the income that Bahamian banks and trust companies generated per annum.
Mr D'Aguilar also pointed out that the Government was "not taxing services one bit", even though this was the sector accounting for the largest amount of economic activity in the Bahamas. He suggested, though, that the Ingraham administration was unlikely to do anything about this in the 2010-2011 Budget, and was likely to save it for a more comprehensive introduction of Value Added Tax (VAT).
"All you're looking at are fees, raising revenues from avenues that have the least effect on the average person in the street," Mr D'Aguilar said of the Government's efforts to plug the fiscal deficit and reduce the national debt.
"Look at the whole fee structure. There's a whole host of fees that are charged, but have not been amended, for four million years.
"They have to look at taxes that are easy to collect. Gasoline taxes are easy to collect because they are paid at the border when the fuel comes in. But property taxes are a nightmare to collect. Increasing property taxes could increase revenue, but not the Government's cash flow. And that's what we need to increase.
"The Government will not be able to get increased taxes from its traditional sources. Import duties are already high enough."
While all Bahamian governments were reluctant to cut spending and reduce the size of government, the former Chamber president suggested that the Ingraham administration now had to seize the moment offered by a public mood that was more prepared for austerity measures, and set the public finances back on track.
Arguing that the Government would find it impossible to accommodate the wishes of the likes of the Nassau Institute, which would like to see departments closed down and employees released, Mr D'Aguilar suggested that the administration "tackle" the generous pensions and benefits civil servants/public sector employees enjoyed.
Emphasising that this did not involve changes to basic salaries, the former Chamber president said: "They've got to get their house back in order. We don't want to go the way of the Greeks.
"The Government needs to look at the generous benefits it gives its employees. Salaries are one thing, but those generous and lucrative defined benefit pension plans for public sector workers and civil servants have to be tackled. That whole issue has to be tackled, as it will come home to roost one day."
May 07, 2010
tribune242
By NEIL HARTNELL
Tribune Business Editor:
Telecommunications is an industry "ripe" for increased taxation, a former Chamber of Commerce president yesterday urging the Government to "come up with innovative ways" to raise revenue by increasing fees on industries that paid "negligible taxes", such as banks/trust companies and the numbers business.
Suggesting that the Government impose a 1-2 per cent tax on making/receiving telephone calls, which is effectively a Bahamian national pasttime, Dionisio D'Aguilar said that if the Ingraham administration sought to raise revenues in its 2010-2011 Budget, it needed to look at fee increases that had the "least effect on the average person in the street".
Urging the Government to "come up with innovative ways to raise additional revenues", Mr D'Aguilar, who is also Superwash's president, told Tribune Business: "There are sectors of our economy that pay negligible taxes. Telecoms, that's a ripe one. Everyone pays a tax on their incoming calls. That's a totally undertaxed sector."
Mr D'Aguilar said such telecoms taxes were already levied in many other countries, and said a 1-2 per cent tax on telephone calls was "negligible to the consumer", especially since many Bahamians treated their cellular phones as a luxury.
Adding that he disagreed with fellow businessman Franklyn Wilson, who yesterday told Tribune Business that legalising gaming would result in net outflows from the Public Treasury, as a result of "gambling breeding poverty" and other adverse social consequences, Mr D'Aguilar said taxing the numbers business would raise millions of dollars per year in government revenue.
"Banks tend to be under-taxed compared to other businesses," he added. "It's a heavily under-taxed industry" compared to the income that Bahamian banks and trust companies generated per annum.
Mr D'Aguilar also pointed out that the Government was "not taxing services one bit", even though this was the sector accounting for the largest amount of economic activity in the Bahamas. He suggested, though, that the Ingraham administration was unlikely to do anything about this in the 2010-2011 Budget, and was likely to save it for a more comprehensive introduction of Value Added Tax (VAT).
"All you're looking at are fees, raising revenues from avenues that have the least effect on the average person in the street," Mr D'Aguilar said of the Government's efforts to plug the fiscal deficit and reduce the national debt.
"Look at the whole fee structure. There's a whole host of fees that are charged, but have not been amended, for four million years.
"They have to look at taxes that are easy to collect. Gasoline taxes are easy to collect because they are paid at the border when the fuel comes in. But property taxes are a nightmare to collect. Increasing property taxes could increase revenue, but not the Government's cash flow. And that's what we need to increase.
"The Government will not be able to get increased taxes from its traditional sources. Import duties are already high enough."
While all Bahamian governments were reluctant to cut spending and reduce the size of government, the former Chamber president suggested that the Ingraham administration now had to seize the moment offered by a public mood that was more prepared for austerity measures, and set the public finances back on track.
Arguing that the Government would find it impossible to accommodate the wishes of the likes of the Nassau Institute, which would like to see departments closed down and employees released, Mr D'Aguilar suggested that the administration "tackle" the generous pensions and benefits civil servants/public sector employees enjoyed.
Emphasising that this did not involve changes to basic salaries, the former Chamber president said: "They've got to get their house back in order. We don't want to go the way of the Greeks.
"The Government needs to look at the generous benefits it gives its employees. Salaries are one thing, but those generous and lucrative defined benefit pension plans for public sector workers and civil servants have to be tackled. That whole issue has to be tackled, as it will come home to roost one day."
May 07, 2010
tribune242
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