Infrastructure Sharing Regulations take effect

Mon, Sep 7th 2015, 12:30 PM

The Utilities Regulations and Competition Authority (URCA) has released the Infrastructure Sharing Regulations (the “regulations”) for the electronic communications sector (ECS). The regulations, which became effective September 3, apply to all licensees issued with an individual operating license and or an individual spectrum license by URCA in accordance with the Communications Act, 2009. The publication of the regulations concludes a process initiated on December 8, 2014, when URCA released the draft regulations for public consultation.

Telecommunications infrastructure for operators primarily pertains to two types of infrastructure, namely: active infrastructure, which refers to network components such as spectrum, switches and antennae; and passive infrastructure, which covers ancillary components such as towers, base transceiver station (BTS) shelters and power. The regulations provide the framework and procedures that will govern passive infrastructure sharing in The Bahamas.

During the initial consultation period, which closed on January 30, 2015 and then extended to February 13, 2015, a total of three written responses were received from sector licensees. They were:

1) The Bahamas Telecommunications Company Limited (BTC);

2) Cable Bahamas Limited (CBL), together with its affiliates Caribbean Crossings Limited and Systems Resource Group Limited, (collectively, CBL); and

3) JazzTell Bahamas Limited (JazzTell).

URCA commenced a second round of consultation on March 2, 2015. At the close of the second round of consultation on March 11, additional responses were submitted by CBL and Digicel Group Limited commenting on the first round responses received on the draft regulations.

Documents released today also include the statement of results [reference ECS 05/2015], detailing feedback received on the draft regulations during the consultation. This statement of results document sets out a summary of the comments made by the respondents, their responses to each of the questions posed in the consultation document, their comments to responses received during the second round of consultation and URCA’s analysis and responses to comments received during the entire consultation period.

Core areas covered by the regulations include:

• Passive infrastructure sharing obligations, which cover general provisions for passive infrastructure sharing and special provisions for the construction, use and sharing of towers;

• Procedure for negotiating passive infrastructure sharing, including provisions on the modification of existing electronic communications towers;

• Price setting for negotiating passive infrastructure sharing, which outlines charging principles and procedures for the setting of infrastructure sharing rates; and

• Dispute resolution and compliance with regulations, which outlines URCA’s process for resolving disputes arising under the regulations as well as monitoring and enforcing compliance with the regulations.

Globally, telecommunications operators’ pursuit of lean business models has led to an evolution, resulting in many operators seeing tower sharing as a viable option. Considering that building and operating infrastructure can be a significant capital cost for operators, it is the ideal way to achieve significant savings. In particular, tower sharing can lead to lower roll-out costs, the potential for faster roll-out of new and innovative services and promotion of competition by lowering barriers to entry for new operators.

Members of the public can view both the regulations [ECS 04/2015] and the statement of results [ECS 05/2015] on URCA’s website at http://www.urcabahamas.bs/consultations.php?cmd=byconsultation&consultation=35 or pick up a copy at URCA’s office in Frederick House on Frederick Street.

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