Amid an ongoing row between Cable Bahamas Ltd. (CBL) and the Utilities Regulation and Competition Authority (URCA) over the construction of new cellular towers, an URCA official has challenged the cable giant over a perceived rush to produce new towers without adequate justification.
URCA Director of Policy and Regulation Stephen Bereaux told Guardian Business that while towers are a "necessary evil" for the country, URCA has an obligation to limit the construction of additional structures unless they are deemed necessary.
"Our role is to limit that impact so we would only sanction or permit the construction of towers if it is proven to us that those towers are going to support a service. As we said in the release, Cable Bahamas has not demonstrated that to us, notwithstanding what they might have said," Bereaux said.
URCA last month ordered CBL to cease construction of any electronic communications towers pending the results of an investigation into the need for the towers, arguing that CBL had not justified the necessity of additional towers.
"Nobody likes towers but they're a necessary evil for lack of a better word, and it's important that when we allow someone to build a new tower that they justify the need to build a tower.
"In the context of rules being put in place, which are not yet firmly in place, and what seems to be an unseemly rush to construct new towers, which has not been justified to us, there was concern. I think the concern is shared by other agencies relevant to the process," said Bereaux.
CBL has condemned the move, insisting that barring tower construction threatens the degree of competition that URCA was intended to promote. CBL has long stressed its believed need to construct its own cell towers in order to provide optimum service to its broadband and future potential cellular clients.
"URCA contacted the company earlier in the year to ensure that the new infrastructure being put in place was not being constructed for use in the delivery of cellular services. CBL confirmed that the new infrastructure was to support and facilitate the provision of wireless-broadband services and would not breach the current cellular exclusivity, given the consequences of such a breach.
"The regulator has never before attempted to block improvements in the provision of electronic communications services in The Bahamas by taking regulatory action to prevent a licensee's lawful construction of network infrastructure," read a CBL statement.
The order came in the midst of the bidding process for the country's second mobile license as CBL sought approvals for cell towers in New Providence and Grand Bahama. The bar will remain in place for either three months or until URCA completes its investigation into CBL's need for additional towers.
The call for a culling of new cellular towers came after URCA 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 last year.
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.
Bereaux told Guardian Business that URCA expects to complete the consultation phase of the proposed regulations in the coming weeks.
"They are still out for consultation. We hope to complete that within the next few weeks. They're very close to finished. That would obviously be in place but there's still the bigger issue of justification of the towers," he said.
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