The government wants Bahamians to own a majority stake in the new company created to offer cellular services in The Bahamas under a new license to be granted by April 2015, if all goes according to plan.
Prime Minister Perry Christie made the point on Wednesday when he announced the opening of the request for proposals (RFP) process, which he said is "designed to take into account the extent to which the widest base of Bahamians could participate in the ownership of the new provider".
The company that wins the license will create a special-purpose entity which will be granted an individual operating licence and an individual spectrum licence by the Utilities Regulation and Competition Authority (URCA), after winning a multiround ascending spectrum auction.
"We anticipate...that the successful bidder would have done the best job of demonstrating that it would enable Bahamians to achieve majority equity ownership of the new cellular provider," says the supporting documentation issued by the Office of The Prime Minister (OPM).
"This was of particular importance to me as prime minister, given my government's pledge in our "Charter for Governance" to expand the role of Bahamians as investors in our economy," Christie said. "My government is passionately committed to ensuring that all Bahamians benefit from the economic fruit of the country and not just a select few."
The prime minister noted that the Cellular Liberalisation Task Force (CLTF) has gone to great lengths to ensure that the proposed ownership arrangement has adequately balanced the competing priorities of The Bahamas' international trade commitments and negotiating positions - such as those under the European Partnership Agreement and the ongoing World Trade Organization negotiations - with a commercially attractive investment proposition to potential investors and the long-term best interest of the Bahamian people.

The process and timeline
On November 13, the government issued an official RFP for a company to "operate a cellular mobile network and provide cellular mobile services to the public in The Bahamas, through a Bahamian entity ("NewCo") formed specifically for that purpose". The closing date for the submission of proposals is February 11, 2015 at 2 p.m.
The process begins with mandatory registration for prospective applicants, with a fee of $5,000. Once registered, prospective applicants will then be able to seek clarification on aspects of the RFP. Proposal submissions must be accompanied by a submission fee of $25,000.
The first phase is a technical and financial assessment of proposals. Bidders will disclose their business plans, which will be shielded by a confidentiality policy. An evaluation committee, which will include members of the CLTF and others with appropriate expertise, will consider each bidder's ability to ensure reliable access to cellular service across The Bahamas, and to provide international standards for network connectivity and download speeds. The bidders' ability to introduce more affordable pricing for cellular service will also be taken into account.
Only those applicants deemed to have met the evaluation committee's criteria will be allowed to proceed to the second phase. Through the a multiround ascending spectrum auction, the government will auction off the rights (licences) to transmit signals over specific bands of the spectrum. Depending on the specific auction format used, a spectrum auction can last from a single day to several months from the opening bid to the final winning bid.
The bidder who scores best in both the evaluation and the auction will be awarded the license, Christie said.
According to the CLTF web page, the next step is the formation of NewCo to hold individual operating and spectrum licences. NewCo must also apply for a business licence, and companies with any non-Bahamian interest must also apply for foreign direct investment approval from the Bahamas Investment Authority.
Once these steps are taken, individual operating and spectrum licences will be granted to NewCo and a second cellular option will be available to Bahamians.

Correction:
CLTF Deputy Chair Rowena Bethel was incorrectly identified as BTC Deputy Chair. Bethel left her position at BTC prior to her appointment to the task force.

Click here to read more at The Nassau Guardian