Network sharing 'a double-edged sword'

Thu, Dec 18th 2014, 12:30 PM

Bahamas Telecommunications Company Ltd. (BTC) CEO Leon Williams yesterday called proposed telecom network sharing regulations a "double-edged sword" as the country prepares for its next cellular license.
Williams told Guardian Business that there needs to be a balance between the interests of BTC and what was best for the Bahamian consumer, after the Utilities Regulation and Competition Authority (URCA) released proposed regulations which call for telecoms operators to share their existing infrastructure with all future competitors.
"It's a double-edged sword. As a nationalist, as a Bahamian you have to look at how this benefits The Bahamas. It's about selling a product to 6.5 million tourists a year.
"I'm trying to balance my position when I put on my nationalist hat and my position when I put on my [BTC] hat. There has to be a balance, you must take both into consideration," he said.
The proposed regulations would require BTC to share its infrastructure with its competitors, thus dramatically reducing initial capital expenditure and the time required to get to market for future licensees. While the regulations would likely be a huge boon to BTC's competitors, some have argued that the move is necessary to provide a level playing field in the country's expanding telecoms sector.
The URCA document also called attention to the aesthetic consequences of separate cellular infrastructure projects, particularly the less than desirable impact of additional cellular towers springing up across the country.
The government's Cellular Liberalization Task Force is expected to make a decision on the second license by spring 2015. While the government has the option of offering a third license in 2016, it is not required to do so. Whether a third license if offered will likely hinge on the successful rollout of the second license.
"BTC has got 40-50 towers in New Providence. The question is whether you want another 40-50 towers for a second license and even more if a third license comes in 2016. Nobody wants four or five towers in their backyard," said Williams.
Speaking at the launch of BTC's Internet Protocol Television (IPTV) service in Bimini, Williams said that BTC remained focused on getting its network up to scratch and building consumer confidence in its cellular service following its $65 million upgrade Bahamas initiative.
With mobile competition around the corner, Williams hoped that BTC's improved network and new services would encourage customers to remain with the government majority-owned company.
"BTC is not just a company. Fifty-one cents out of every dollar earned by BTC is yours. You do not want to cannibalize your own pocketbook," he said.

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