Bahamas: Government tabled three bills in Parliament to liberalise telecoms markets, to privatise BTC and to regulate markets

[Nassau Guardian] The government took a critical step towards regulating and liberalizing the communications sector in the country, while paving the way for the privatization of the Bahamas Telecommunications Company (BTC) when Prime Minister Hubert Ingraham tabled three bills in the House of Assembly that would break the hold of telecommunications monopoly in the country.

Ingraham said the Electronic Communications Bill, the Utilities Regulation and

Competition Authority Bill, and the Utilities Appeal Tribunal Bill would provide the necessary framework to ensure international standards and best practices in the sector.

He said the legislative changes would be followed by the sale of 51 percent of BTC.

The Electronic Communications Bill, which would replace the Telecommunications Act 1999, would establish a system of regulating all electronic communications in The Bahamas, including broadcasting.

The bill would enable regulations to be adjusted over time to reflect convergence between fixed and mobile telecommunication, as well as between broadcasting, IPTV, Cable TV, and other forms of content distribution.

The Utilities Regulation and Competition Authority Bill would replace the Public Utilities Commission Act 1993.

According to the prime minister, the structuring of the Utilities Regulation and Competition Authority and the provision for industry funding of its operations, are intended to provide a robust level of independence and autonomy. He explained that this is important given that the government will continue for some time to be a significant shareholder in BTC and in Cable Bahamas.

The Utilities Appeal Tribunal Bill would establish an appeal process specific to the electronic communications sector that would be funded by the industry.

Ingraham said debate on the bills is expected to begin on May 4, and upon completion of the parliamentary process, the government intends to proceed with BTC's privatization, with a view to concluding a transaction "within a short time frame."

"BTC has been readied for this exercise for the last several months, and the necessary sale documentation and due diligence is substantially in place to allow for an efficient process," Ingraham said.

"Upon privatization and opening up of the electronic communications sector to competition, BTC will continue, for some time, to be significantly owned by the people of The Bahamas, prosperous, and the employer of hundreds of Bahamians, while concurrently providing efficient and innovative services to our economy," he added.

Ingraham said the government has made it clear that the strategic partner must be a well-resourced entity with established credentials in the telecommunications industry, able to further prepare the company for competition.

Parliamentary approval for the sale of 51 percent of the government's holdings in BTC is required and will be sought upon the conclusion of an agreement with a strategic partner.

The Bahamas is among the few countries, which maintain the monopoly on the provision of mobile telephone services and a near monopoly with fixed line service, Ingraham said.

He said immediately upon the privatization of BTC, liberalization of fixed line phone services, cable and IPTV and Internet services will begin.

The liberalization of mobile services will come two years later.

Ingraham said the government feels this move will boost the economy while providing more options to consumers. Among the benefits will be higher quality service, lower prices, and a variety of products and services, according to the prime minister.

Bills to liberalize telecoms sector tabled