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

Bahamas Blog International