The Guardian learned that BlueTel received a letter from the Tenders Commission rejecting its bid Thursday afternoon. BlueTel was the second group to enter into negotiations, following the commission rejection of BahamaTel, the initial preferred bidder in November.
The last official word from the commission was Nov. 18, when it announced it was extending the negotiating period with BlueTel from the initial two weeks to 30 days. The reason given was to allow BlueTel to provide the commission with additional detailed information necessary for further negotiations.
In a release extending the exclusivity period, the commission said:
“In order to provide sufficient time to review the material expected from BlueTel, the decision has been taken, in accordance with section 11.3 of the Final Sales Rules, to extend the negotiating period to 30 days.”
On hearing the latest news, a source close to the negotiation process exclaimed:
“Have you found anybody who is surprised?”
He said that with the bid expiring tomorrow and the launching of a new GSM cellular network next week, new cell phones will be used as a distraction as well as an argument that BTC is doing fine and privatisation is unnecessary, and the fact that for a large period this year consumers were unable to receive new cellular service will be overlooked.
Early last week, BTC announced it will begin prepaid (QuikCell) service on its new GSM network later this month, with plans to add post-paid cellular service in early 2004. The new GSM network would reportedly allow the company to lift its moratorium on cellular phones in the Family Islands.
The entire process was described Thursday by The Guardian’s source as an enormous waste of time and effort and evidence that there is an obvious divide among government officials on the subject, which would explain why the process was allowed to go on and on. The source further speculated that it is probable once the government was presented with the business plans of the three final bidders, which outlined what is realistically needed to save the company, they just could not go through with it.
According to the source, the government, as have other governments faced with this process, is having a difficult time with the idea of relinquishing total control of such an essential service.
BTC has about 1,200 employees, which is a large ratio based on the country’s total population, the source said. To the government, this translates to 1,200 voters and 1,200 famiies among other things.
“This presents huge opportunities for political patronage and letting go of this is very difficult.”
In a speech to the Bahamas Business Outlook on Jan. 13, Minister of State in the Ministry of Finance James Smith said privatisation of BTC would be complete in the first half of the year.
“Privatisation of the telecommunications company should not only provide additional funds to government for debt reduction in 2003, but should also provide increased capacity for expanding information technology, including high-speed data-transmission capabilities, which are essential to the e-commerce development effort,” Senator Smith said.
Prime Minister Perry Christie said at the same conference that his government was committed to the privatisation of BTC.
By Martella Matthews, The Nassau Guardian
