URCA orders CBL to 'cease and desist' building towers

Sun, Apr 26th 2015, 11:31 PM

The Utilities Regulation and Competition Authority (URCA) has ordered Cable Bahamas Ltd. (CBL) to "immediately cease and desist" construction of any electronic communications towers pending the results of an investigation into the need for the towers.

In a notice issued over the weekend, URCA issued an interim order halting the work of CBL and its subsidiaries on any new or preexisting towers in light of the "public nuisance" and environmental damage widespread construction could potentially cause the country.

"URCA has a responsibility to regulate the electronic communications sector in a manner which furthers the Electronic Communications Sector Policy objectives as set out in the Communications Act, which objectives include limiting public nuisance through electronic communications and limiting any adverse impact of electronic communications networks and carriage services on the environment.

"URCA has noted that CBL has been engaged in obtaining approvals for the construction of electronic communications towers and/or the actual construction of electronic communications tower structures in New Providence and Grand Bahama, without having justified to URCA the necessity of such towers, despite enquiries made and concerns expressed by URCA in that regard," read the statement.

The order, which will remain valid for either three months or until URCA completes its investigation, comes as CBL seeks approvals for cell towers in New Providence and Grand Bahama. URCA warned that it could take enforcement action under the Communications Act against CBL, one of the three remaining bidders for the country's second cellular license, should the cable provider refuse to comply.

"Therefore, by an interim order issued by URCA on April 17, 2015, CBL has been ordered to immediately cease and desist from erecting or completing any electronic communications towers anywhere in The Bahamas, pending URCA's conduct of a full investigation into the matter," read the statement.

URCA last year issued a series of proposed regulations designed to encourage infrastructure sharing (predominantly of cell towers) between the Bahamas Telecommunications Company (BTC) and the incoming second provider. URCA argued that that infrastructure sharing would not only cut down on the aforementioned "public nuisance" associated with widespread construction, but also reduce start up costs for the second provider while facilitating a much faster launch of services. However, CBL has been vocal in its need to construct its own cell towers on the basis of providing optimum service to its potential clients.

BTC officials have supported the policy, which would likely require the second license holder would then pay BTC a fee for the use of its preexisting towers. However, officials from rival bidder Digicel earlier expressed strong concerns with BTC's cell towers, claiming that towers constructed in the wake of URCA's proposed regulations had been deliberately designed to accommodate only one network. As a result, Digicel officials estimated that the necessary upgrades to allow adequate infrastructure sharing could cost upwards of $18,000 per tower on top of any long-term sharing fee. BTC has yet to address these concerns.

The government is expected to announce The Bahamas' second mobile service provider in May.

Click here to read more at The Nassau Guardian

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