BTC: Up to 8 MBps broadband by Christmas

Sun, Oct 9th 2011, 08:10 AM

Come Christmas, New Providence and Grand Bahama residents will be able to access mobile broadband speeds of up to 8 Megabytes per second (MBps) for post-paid service and 2 MBps for pre-paid service, according to the Bahamas Telecommunications Company (BTC).
In a media update six months into operations at the "new" BTC, its chief executive officer Geoff Houston said the company is "well on track" for a pre-Christmas launch of its 4G service in the two larger markets.  He added that a roll-out to the balance of the Family Islands should be completed within 18 months.
Houston said the enhanced buying power BTC now enjoys through its Cable & Wireless Communications (CWC) parentage is allowing significant savings - the price tag for the cutting edge 4G network to come in, is at $42.8 million over the next few years according to Houston.
"We know that we have been able to buy new networks significantly cheaper.  The [4G] mobile network is at least 35 to 40 percent cheaper," Houston said, adding that the company is now able to secure global pricing.

"On other capital programs, the rule of thumb is a 35 to 40 percent savings on capital programs, generally speaking."
The BTC CEO said the company was leveraging its new spending capacity in other areas, with "significant" spend reductions in operating costs with its regional and global suppliers as well.  The company's new mobile hand-set range, for example, was secured at the price LIME - CWC's Caribbean brand - was able to secure.  It made those handsets 'a little cheaper' compared to the prices BTC was able to achieve before tapping into CWC's buying power.
"In terms of dollar savings this financial year from our procurement sales it is definitely in excess of $10 million," said Houston.
The previous half-year has also seen BTC move to optimize a substantial portion of its existing network.  While the company did not move to invest heavily into it, Houston said time was invested in improving the quality of service, for example ensuring less dropped calls.  Five new cellular cites were also added to the existing network to help meet capacity demands, he said.
The changes may be behind improved usage of the network, according to Houston.
"What we can say actually is that as a result of some of these changes, we have seen nearly a 10 percent increase in our traffic on the network which indicates to us that we are starting to solve some principal problems but at the same time, we have a less-than-perfect situation at the moment,' he said.
The old network will be 'completely ripped-out' and replaced with the new mobile network, Houston said.
The company was not able to make any representations as to how its future 4G network or other services will be priced, not wishing to run afoul of the Utilities Regulations and Communications Authority (URCA) procedures governing pricing and communication of intended price changes.
With 4G service coming on stream, tourists with smartphones and similar technology may also seek out BTC's services.  Houston reported that the company was anticipating a 'significant pickup' in demand from visitors, particularly for its 4G service.  It is one of the reasons underlying BTC's plans for an enhanced and expanded retail presence.
The Company is aiming to add at least 50 new retail stores over the next year.  While 16 to 18 of them are expected to be BTC-owned, the others are planned for ownership by entrepreneurs.
The CEO is billing the new retail focus as a "significant" change in the organization, and BTC is aiming to increase its customers' access to its services and products through visible 'points-of-presence' throughout The Bahamas.
Marlon Johnson, BTC's vice president of marketing, sales and business development, said that much of the details of the new retail operation will be informed by the market and its needs.  For example, an entrepreneur with a store-front at a remote family island location may incorporate BTC into their operations in a store-in-a-store format.
"The important thing is accessibility that makes sense," Johnson said.
Houston concluded that BTC should continue to return profitability for its shareholders by the end of its fiscal year in March.  He noted that BTC's parent company was "very pleased" with its performance thus far.

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