By the end of 2017, the Utilities Regulation and Competition Authority (URCA) plans to complete price cap regulation for the electronic communications sector (ECS), a move that will help to further foster an environment for competition in the telecoms market.
With the entrant of a second mobile operator, URCA proposed to liberalize its authority in the sector in an effort to promote more competitive behavior among mobile operators with significant market power (SMP) for mobile services such as Bahamas Telecommunications Company (BTC) and BeAliv. A price cap regime will help to facilitate the regulator's liberalization efforts.
In its 2016 annual report released yesterday, URCA explained that it has been working towards advancing its current rules based on the regulation of prices, to one in which operators would have "more flexibility" in adjusting their prices within pre-existing boundaries.
The implementation of price cap regulation was an outcome of URCA's 2014 market review. The framework is now complete, but URCA delayed the public consultation process due to cellular mobile liberalization.
The regulator anticipates that a market review for price cap implementation will take place in May to August of 2017.
On the topic of implementing price caps, BTC lauded URCA for its progress made so far on the matter.
"BTC commented on the value it places on flexibility in mobile services prices and was of the view that such flexibility would help to bring new products into the market," said URCA.
Price cap regulation is just one of the many goals the telecoms regulator intends to complete this year.
For instance, URCA intends for its publication period on net neutrality and over-the-top content (OTT) services to begin in May to August of 2017 and to close a period of consultation by the end of this year.
URCA pointed out that Aliv stated it looks forward to participating in the consultation on net neutrality and OTT services.
In addition, "Aliv noted its anticipation of being able to contribute to the new sector policy for 2017-2020 when the existing ECS policy expires in April 2017," said URCA.

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