Nassau, Bahamas - (Statement) URCA has issued an interim order requiring Cable Bahamas Ltd (CBL) to
halt construction of towers that the company has stated it intends to
use to facilitate the provision of fixed wireless broadband services to
its customers. CBL
has taken immediate steps to comply with URCA's order and has stated
its commitment to comply fully with the regulator's investigation.
CBL expressed
surprise at URCA's action, considering that earlier this year the
regulator contacted the company to ensure that the new infrastructure
being put in place was not being constructed for use in the delivery of
cellular services. CBL confirmed that the new
infrastructure was to support and facilitate the provision of
wireless-broadband services and would not breach the current cellular
exclusivity, given the consequences of such a breach.
To the best of CBL's
knowledge, URCA's actions are also unprecedented. The regulator has
never before attempted to block improvements in the provision of
electronic communications services in The Bahamas by taking regulatory
action to prevent a licensee's lawful construction of network
infrastructure. In recent months, other telecommunications providers
have constructed numerous towers without any known action to prevent
such activity. In its investigation of CBL's most recent infrastructure
expansion, the company expects URCA to honour its obligation under the
law to act in a manner that is transparent, fair and non-discriminatory.
CBL maintains that the
new facilities will enable the delivery of services that the company is
already authorised to provide under its licences granted to it by URCA.
The company's position is that the establishment of its new
infrastructure is not subject to URCA's oversight. URCA has indicated
that it is mandated to limit public nuisances caused by electronic
communications. Yet URCA has not specifically indicated that the
infrastructure in question actually constitutes a public nuisance.
CBL regrets that, in taking this action, URCA appears to have disregarded its responsibilities to promote what the company believes are the Act's most important policy objectives, which are to:
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"enhance the efficiency of the Bahamian electronic communications sector;"
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"promote investment and innovation in electronic communication networks and services;"
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"encourage, promote and enforce sustainable competition" in the sector; and
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"promote the optimal use of . . . radio spectrum."
It appears that URCA may not be acting independently of the government, and taking
such action to stop the company's infrastructure development is
possibly for the sole purpose of short-circuiting the cellular tender
process. CBL holds the position that there is no risk of this
occurring and it has, on several occasions, reassured URCA of this.
Regrettably, despite its responsible best efforts, CBL's attempts for
clarification have been ignored, including attempting to schedule
meetings with URCA on the matter, noting that the regulator did not
follow good regulatory practice in allowing the company to address its
concerns.
The impact of URCA's
actions could hurt the development of the telecommunications sector in
The Bahamas. In practice, these actions would block new infrastructure
construction for the provision of any existing and new services,
including those for which a company has already secured a licence.
Furthermore, the prohibitive red-tape sponsored and promoted by URCA for
this type of infrastructure development will stifle the roll-out of
facilities required to offer any type of wireless-based services. CBL
believes that the primary loser is the Bahamian public, who will not see
the benefit of service innovation and competition of which the market
is sorely in need.
CBL stated that it has
built its success on investing in high quality networks and innovative
services, and the residents of The Bahamas have expressed their
confidence and approval of these actions by choosing the 100%
Bahamian-owned company's broadband services by an overwhelming margin.
URCA's interim order places a major roadblock in the way of the
company's ability to serve its customers innovative and reliable
services. CBL's investors will have to bear the financial implications
from URCA's actions as the inevitable delays jeopardise the timely
roll-out of advanced wireless broadband services.
Despite these
concerns, CBL has suspended construction of new wireless infrastructure.
The company is committed to working diligently to bring URCA's
investigation of this matter to a swift conclusion and a positive
outcome for Bahamian consumers. The company hopes that URCA will rescind
the interim order without delay, to enable CBL to continue to upgrade
and expand its fixed wireless broadband network for the benefit of
Bahamian consumers.
Cable
Bahamas is the communications provider of choice and the first to offer
triple play (voice, video, data) services in The Bahamas. In 2013,
Cable Bahamas expanded its operations to Florida by acquiring four
telecommunications providers and merged them into Summit Broadband,
offering businesses and consumers a nearly 500-mile fibre-optic backbone
connecting south Florida, west Florida and central Florida. Cable
Bahamas offers telephony, broadband Internet, cable TV and data
transport services under the brand names REVOICE, REVON and REVTV in the
Bahamas and as Summit Broadband in Florida, to both home and business
customers throughout the Bahamas, southwest Florida and central Florida.
The company also offers dark fibre transport to enterprise and carrier
customers. In The Bahamas, the company also created the Cable Bahamas
Cares Foundation, which has awarded over $2 million to local Bahamian
non-profit organisations since its inception.