BTC: No comment on cell tower design accusation

Wed, Feb 18th 2015, 11:24 PM

The Utilities Regulation and Competition Authority (URCA) has issued proposed regulations that would require operators of mobile networks, where possible, to share facilities and the Bahamas Telecommunications Company (BTC) - in the midst of a $65 million upgrade in order to prepare for competition - has refused to comment on an accusation by one of the three companies vying for the second mobile license that BTC is making the entry of a competitor more financially challenging by building new cell towers that are only designed for one tenant.

That accusation was lobbed by Digicel Bahamas, which is "absolutely" in favor of "colocation", or what URCA terms "infrastructure sharing". Digicel, Virgin Mobile Bahamas and Cable Bahamas are all in the race for the next mobile license, which is expected to be granted by summer. In the meanwhile, BTC continues to operate in anticipation of a competitor.

Digicel Vice President of Business Development Frank O'Carroll told Guardian Business that Digicel's research team has observed - and here he stressed that no one from Digicel touched a tower belonging to BTC - that BTC's new towers are designed for one tenant.

"That's deliberate," he said.

He noted the towers can be rehabilitated to allow a second tenant, but that would cost $20,000 or so to upgrade each tower. BTC Chief Executive Officer Leon Williams said he had no comment in respect of Digicel's accusation.

A history of sharing
O'Carroll asserted that Digicel has vast experience working in island nations with small populations scattered in small communities that are difficult to access. Cell towers in these communities must be secured, refueled and maintained.

"We share infrastructure with our competitors in those places," he said."It is very successful.

Tower construction in urban areas costs about $90,000, O'Carroll said. In rural areas, that cost can run upwards of $300,000 - an exorbitant cost for a small population.

"The maths make sense when you share that facility with someone else," he said.

URCA regulations
In December 2014, URCA issued proposed regulations requiring operators, where possible, to share their facilities.

"URCA believes that infrastructure sharing will serve as a catalyst for faster roll-out of new and innovative services by all operators in an effort to differentiate product offerings to consumers," the regulator said. "In a newly liberalized cellular mobile market, it is imperative that the introduction of new entrants is encouraged in order to promote competition. Facilities sharing increases the attractiveness of the market to new players since barriers to market entry are lower."

BTC has been building cell towers since entering the mobile market in 1988.

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