The Cellular Liberalisation Task Force
advises the public that the Utilities Regulation and Competition Authority
(URCA) has been duly notified to proceed with the licensing of the new cellular
mobile company (NewCo). Cable Bahamas Limited (CBL) will have a 48.25%
shareholding, as well as board and management control of NewCo. The licences
will be awarded after URCA has completed the final formalities of the licensing
process.
On October 18th 2015, the Task Force announced that CBL
emerged as the successful bidder of the cellular mobile selection process,
having obtained the higher score of the two bidders that participated in the
spectrum auction administered by URCA.
The Task Force then commenced discussions with CBL
regarding the ownership arrangement that was stipulated in the Request for
Proposals, dated November 13th 2014. These discussions have led to the
conclusion of the shareholders agreement that will govern the relationship
between CBL and HoldingCo.
HoldingCo
HoldingCo is the entity that will hold the majority equity
ownership interest (51.75%) in NewCo on behalf of the Bahamian public. In order
to facilitate the timely formation and licensing of NewCo, HoldingCo will be
formed with Government as the sole and initial shareholder. Government’s
shareholding in HoldingCo would only be temporary in nature, pending an
offering of shares in HoldingCo to institutional investors (e.g. local
pension/mutual funds, co- operative credit unions). As such, the Government
will soon appoint a Caretaker Board for HoldingCo until such time as
HoldingCo’s shares have been divested.
The Task Force and its professional advisor,
PricewaterhouseCoopers, will now focus on soliciting eligible investors.
However, this will not interfere with the timing of NewCo’s launch once the
relevant licences have been granted by URCA.
Licensing
and roll-out timeframes
The licence will be awarded to NewCo for a fifteen year
period. From the time that the licences are awarded, NewCo will be required, on
a phased basis, to satisfy the following coverage obligations:
Within 3 months: 99% in New Providence and 80% in Grand
Bahama
Within 6 months: 75%
in each of the islands of
Eleuthera, Abaco, Bimini, Andros and Exuma (including Black Point, Little Farmers
Cay, Staniel Cay and Stocking Island);
Within 8 months: 85% in Andros and 99%
in each of
the islands of Grand Bahama, Eleuthera, Abaco, Bimini and Exuma (Including
Black Point, Little Farmers Cay, Staniel Cay and Stocking Island)
Within 12 months: 99%
in each of the islands of
Andros, Cat Island, Long Island, San Salvador, Berry Islands, Inagua and Ragged
Island;
Within 18 months: 99%
in each of the islands of
Acklins, Crooked Island, Long Cay, Rum Cay and Mayaguana; and
Within 24 months: 80%
in each of the remaining
Exuma Cays.
A 99% coverage requirement, for example, means that NewCo
will have to ensure that reliable service is available in 99% of the places
where persons habitually live and traverse. NewCo’s performance with respect to its licence obligations will
be secured by a Performance Bond to be submitted to URCA within fourteen (14)
days of the licences being granted.
Further information about the selection process and key
contacts are available on the website of the Task Force, http://www.bahamas.gov.bs/
cellularliberalisation.
