Local
Delivery of fixed broadband wireless services halted by URCA
By David Burrows, Cable Bahamas
Apr 27, 2015 - 12:33:38 AM

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:

• "enhance the efficiency of the Bahamian electronic communications sector;"
• "promote investment and innovation in electronic communication networks and services;"
• "encourage, promote and enforce sustainable competition" in the sector; and
• "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.

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