NASSAU, BAHAMAS- Cable Bahamas and the Bahamas Telecommunications Company Ltd, the country’s two major communications providers, expressed concerns over the timing of URCA’s consultation on modifications and variations to Electronic Communications Sector (ECS) licenses, with BTC contending that it had been “left until the last hour,” having been issued just weeks before its license expiry, which left insufficient time for review and feedback.
CBL noted that the timing, during the industry’s traditional August vacation period, strained resources and limited their ability to respond, deeming the process unfair and inconsistent with established practices.
The Utilities Regulation and Competition Authority (URCA) has released its Final Determination on modifications and variations to ECS individual licenses, class licenses, and exemptions following a public consultation process. In the Preliminary Determination issued on 20 August 2024, URCA proposed revisions to ECS license terms and conditions, along with exemption criteria. Major telecom operators, including BTC, Cable Bahamas Limited (CBL), Be Aliv Limited, and the Global Satellite Operators Association (GSOA), provided feedback during the consultation period, which ended on 20 September 2024. URCA noted that the Final Determination, published on Tuesday, incorporated feedback from stakeholders, balancing the evolving needs of The Bahamas’ ECS with industry concerns. The updated terms better align with technological advancements and market changes since the original licenses were issued in 2009.
The regulator noted that the level of participation in this Preliminary Determination consultation process was significantly below what URCA anticipated, despite its best efforts to give advanced notice regarding its intent to conduct a consultation on the proposed modifications and variations to the ECS licenses and exemptions, and having provided interested parties a reasonable opportunity to submit representations on the matters under consultation.
BTC, however, in its response highlighted what it considered to be the late timing of the issuance of the Preliminary Determination. It noted that its license expires in a matter of weeks and that it applied for its renewal a year ago, to which URCA indicated it was planning to review existing licenses to ensure they properly reflected current circumstances along with sector developments over the last fifteen years since BTC’s license was issued. “BTC is of the view that the Preliminary Determination was left until the last hour and affords parties little time to review the proposed Revised Licences to provide properly considered comments on the proposed changes or to provide parties adequate time to offer proposed changes of their own,” URCA noted.
The CBL Group stated that it was “constrained to express its disappointment at how the Preliminary Determination unfolded.” It added that August is traditionally recognized as a vacation month in the telecommunications industry, thereby creating a strain on available resources to initiate immediate activity to review the contents of the Preliminary Determination, including the revised licenses in a measured approach. The CBL Group believes that the extreme lateness of the Preliminary Determination document is unfair to licensees and that the elimination of any opportunity for a time extension is not in keeping with established practice.
The CBL Group noted that licensees are expected to be efficient and respond promptly to URCA’s requests, and it does not see an equal obligation on the part of URCA concerning the timing of the Preliminary Determination. The CBL Group said it fully appreciates that after fifteen years, given the significant evolution of the telecommunications industry during this period, there is an essential need to bring the licenses into the new era of telecommunications and its ecosystem in order to be current with new technology, standards, and practices. The CBL Group expressed that it has been eagerly awaiting the issuance of the Preliminary Determination on license renewals since January 2024.
For its part, URCA expressed strong disagreement with the two major providers, assuring that the project was neither “left for the last hour” nor insensitive to the vacation practices of the industry. The regulator noted that the perceived delays were due to comprehensive internal reviews and unforeseen developments, including the creation of a new legal framework for the Natural Gas Sector (NGS). URCA also pointed out that BTC and CBL had 15 years to familiarize themselves with their licenses and could have proposed amendments earlier.
URCA also noted that the public consultation process related to the development of the regulatory framework specific to satellite-based services in The Bahamas is scheduled to commence in November 2024.
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