The regulatory activities of the Public Utilities Commission in the telecommunications sector since March 2000 have already resulted in increased competition and numerous benefits to consumers including wider choices in Internet service providers and lower costs for Internet Service, according to E. George Moss, Executive Director of the Public Utilities Commission.
In a recent address to the Kiwanis Club of Cable Beach, Mr Moss said The Bahamas now has 16 internet service providers compared with 3 in March 2000.
"The residential Internet service package that cost $100 per month in 2000 is now available for about $20, a decrease of 80%. Similarly, business packages have been reduced from $150 to $35, a decrease of 77%," Mr. Moss said.
With respect to international leased circuits using submarine cables, Mr. Moss said in March 2000 the Bahamas Telecommunications Company (BTC)was the only operator but Caribbean Crossing was licensed in April 2001.
"Since then, the price of a 64 kbps leased circuit fell from $3,010 per month to $1,062, a decrease of 65%. Similarly, the price of a 1.544 Mbps circuit fell from $29,400 to $10,500, a decrease of 64%. As for cellular service, the monthly access fee was reduced from $45 in 2000 to the present price of $10 and airtime was reduced from an average of 38ﾢ/minute to 15ﾢ/minute," he said.
Noting that private sector partnership and competition have moved to the top of political and economic agendas all over the world including The Bahamas Mr. Moss said he expects that the successful privatization of the Bahamas Telecommunications Company will add a new dimension to the regulatory climate in The Bahamas.
"The PUC will have to redouble its efforts to ensure that any disputes with other licensed operators are handled expeditiously so that the growth of competition is not hampered or impeded," he said.
Mr. Moss stated that expected benefits of privatization may include the raising of revenues for the Public Treasury, increased efficiency of a state-owned enterprise, expanded investment by private sector financing, attraction of foreign investment, greater commercial orientation of the company, improved responsiveness to consumers, human resources development and knowledge transfer to nationals.
However, he stressed that such benefits will only be achieved on a sustainable basis if reforms are applied in accordance with international best practice, for example, the establishment of independent regulatory bodies like the Bahamas Public Utilities Commission.
"Most countries, including The Bahamas, accept that the opening of their telecommunications market to the private sector has dramatized the need for independent, well staffed and financed regulatory agencies. This conviction is confirmed by the extraordinary growth in the number of telecommunications regulatory agencies internationally. I understand that there are now over 100 independent regulatory agencies worldwide compared with 12 in 1990. The trend is clear," Mr. Moss said.
As an economic regulator, one of the PUC's main tasks is to provide access to the telecommunications market by way of licensing and the lowering of barriers to market entry according to Mr. Moss.
"In this regard, the PUC itself reduced Internet service licence fees from $10,000 to $2,600; paging and trunking licence fees from $5,000 to $1,300. These charges represent reductions of 74% in licence fees," he said.
In addition he said some of the major regulatory activities undertaken by the PUC since starting operation in March 2000 include:
* Granting of numerous radio frequency licences. There are now 7,594 of such radiocommunications licences (maritime, aeronautical, and private land-based mobile) on the register;
* Setting technical standards for Customer Premises Equipment;
* Setting standards for registration of Approved Installers of customer equipment;
* Licensing of Caribbean Crossing Limited to build a submarine cable between the USA and The Bahamas to provide telecommunications transmission capacity for Other Licensed Operators. This cable has landing stations in Grand Bahama, Abaco, Eleuthera, and New Providence;
* Preparation and issuing of Internet service licences. We now have 16 on the register compared with three in March 2000;
* Granting a Public Fixed Radiocommunications Licence to SRG (there is an outstanding legal challenge to the PUC's decision);
* Two class licences for spread spectrum low power radiocommunications devices(there is no need to apply for a class licence; you simply use the radiocommunications frequencies under the specified rules);
* Issuing an Interim Licence to BTC (Batelco);
* Preparation of draft licences for a privatized BTC; and Processing BTC's application for additional radio frequency spectrum for GSM (Global System for Mobile Communications).
In conclusion Mr. Moss said the PUC, like the telecommunications sector that it regulates, is still developing.
"The Telecommunications Sector Policy envisages a world-classtelecommunications sector for The Bahamas. We see our job at the PUC as promoting a competitive business environment to make this happen. It is also accepted that top class telecommunications services are extremely important to the economic health and growth of our country.
Therefore, The Bahamas can remain an attractive destination for businesses for only as long as it can compete with the rest of the world in the provision of high quality telecommunications service," he said.
The Bahama Journal
