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From:TheBahamasWeekly.com Bahamas Information Services Updates 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/
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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.