House Communication by Prime Minister the Rt. Hon. Hubert Ingraham on the introduction of three Bills to Parliament this morning (The Communications Act 2009 - short title):

-The Electronic Communications Bill
-The Utilities Regulation and Competition Authority Bill
-The Utilities Appeal Tribunal Bill.

These Bills will allow for the privatization of The Bahamas Telecommunications Company Limited, the early licensing of additional operators in fixed line and mobile telephony; the liberalization of the provision of cable television services; and the permission of unrestricted provision of broadband services throughout The Bahamas.

Mr. Speaker,

The Government is committed to the modernization of the Bahamas? communications sector and will today table legislation to provide the necessary framework to ensure international standards and best practices in the sector.

There are three (3) Bills that the Government will introduce. They are: the Electronic Communications Bill, the Utilities Regulation and Competition Authority Bill, and the Utilities Appeal Tribunal Bill.

The Government has committed to introducing competition to the Bahamas? electronic communications sector through:

a) privatizing The Bahamas Telecommunications Company Limited, and the early licensing of additional operators in fixed line and mobile telephony;
b) liberalizing the provision of cable television services; and
c) permitting unrestricted provision of broadband services throughout The Bahamas.

The Bahamas is today among the few countries worldwide which maintains a monopoly on the provision of mobile telephone service, and a near monopoly on the provision of fixed line telephone service.

The Government is mindful of the significant benefits to the economy afforded by competition in the delivery of modern, efficiently-priced electronic communications services. These benefits include, among others:

? significantly higher quality of service;
? lower prices;
? enhanced choices in products and services to the consumer including service to Bahamian telephone consumers when they travel abroad; and
? a focus, by the providers of services, on innovation, to maintain and increase customer loyalty.

These factors are particularly critical to a services-based economy such as that of The Bahamas.

The Bahamas has, for many years, been deprived of these benefits which only a dynamic, privately?driven market can deliver.

The Bahamas Telecommunications Company has, nevertheless, played a vital role in the development of The Bahamas economy, and is today one of the major economic enterprises in The Bahamas.

Much attention has been devoted by The Government of The Bahamas to ensure that BTC is as well-prepared for competition as is possible. Upon privatization and opening-up of the electronic communication sector to competition, BTC will continue, for some time, to be significantly owned by the people of The Bahamas, prosperous, and the employer of hundreds of Bahamians, while concurrently providing efficient and innovative services to our economy.

In this regard, the Government has made it clear that the strategic buyer of 51% of BTC?s capital must be a well-resourced entity with established credentials in the telecommunications industry, able to further prepare BTC for competition and to develop the company for the future.

In March of 2008, the Government appointed a Privatization Committee, comprised mainly of private sector professionals, to develop comprehensive recommendations relating to policy and regulatory reform, privatization and market liberalization. The Committee was assisted by specialist advisors in the area of communications law and regulations.

The Committee has now submitted its detailed recommendations relating to:

a) Reform and modernization of the Electronic Communications Sector;
b) Reform and strengthening of the Sectors? regulation; and
c) Preparation for the sale of the proposed 51% interest in BTC to a suitable strategic buyer, including recommendations for managing certain critical issues to facilitate the sale.

These recommendations have been also been reviewed by the Privatization Advisory Committee, chaired by Cabinet Ministers and comprising Union Officials and Private Sector representatives.

The Bahamian public and the electronic communications sector, both domestic and international, have been engaged in this process through the wide dissemination of reports of three separate Consultations since December 2008, publication of the three draft bills being tabled today, and by way of a public relations programme aimed at informing the public of the steps being taken as this work has progressed.

Mr. Speaker:

The proposed legislation includes:

1. The Electronic Communications Bill which will replace the Telecommunications Act, 1999, and will establish a system for regulating all electronic communications in The Bahamas, including broadcasting. It is considered fundamental to the new regime to include broadcasting given the convergence of communications and media, and the deficiencies inherent in the current regime due to existing separate regulation of telecommunications and broadcasting.

The Bill will enable regulation to be adjusted over time, to reflect convergence between fixed and mobile telecommunication, as well as between broadcasting, IPTV, Cable TV, and other forms of content distribution.

The most significant changes to the current regime embodied in the new act will include:

? Provision of enhanced powers to the new converged regulator, that is, the Utilities Regulation and Competition Authority (URCA), enabling it to perform its mandate effectively. Regard is being given to special resource needs to enable URCA to regulate what will be a larger and far more complex industry in The Bahamas going forward. These special resources include the appointment of an internationally experienced Director of Policy and Regulation;

? Introduction of competition provisions relative to the electronic communications sector, including powers for URCA to address anticompetitive agreements, abuse of a dominant position, and to approve or disapprove mergers involving licencees;

? Creation of an ad hoc appeals tribunal, specific to the sector; and

? Introduction of standard fees for all licensed operators - these to include a Communications Licence Fee, and a fee to be paid to the regulator to fund its Operations.

2. The Utilities Regulation and Competition Authority Bill which will replace the Public Utilities Commission Act, 1993.

The structuring of the Utilities Regulation and Competition Authority and the provision for industry funding of its operations, are intended to provide a robust level of independence and autonomy to this entity. This is particularly important given that the government will continue, for some time, to be a significant shareholder in BTC and in Cable Bahamas.

It is intended that URCA?s remit may be extended to regulate provision of other public utility services as determined appropriate in the future.

3. The Utilities Appeal Tribunal Bill The Utilities Appeal Tribunal (UTA) will establish an appeals process specific to the electronic communications sector. The UTA will be funded by the industry. An appeals tribunal has become a common element in regulatory reform in the communications and competition law environment over the past decade, reflecting the need in this industry for a rapid and specialized appeals process.

IMPLEMENTATION

It is the government?s intention to implement this new regime without delay.

The Government proposes to begin debate on these Bills on Monday, May 4th and expects to conclude the debate by Thursday May, 7th. This should allow Members sufficient time to review the Bills being tabled today, and for a full debate on this most important initiative.

Upon completion of the Parliamentary process, it is the government?s intention to proceed with the BTC privatization exercise, with a view to concluding a transaction within a short time frame.

BTC has been readied for this exercise for the last several months, and the necessary sale documentation and due diligence is substantially in place to allow for an efficient process.

Parliamentary approval for the sale of 51% of the Government?s holdings in BTC is required and will be sought upon the conclusion of an agreement with a strategic partner.

Immediately upon privatization of BTC, liberalization of fixed line telecommunications services, cable and IPTV and internet services will begin, with liberalization of mobile services coming into effect two years following privatization.

The liberalization process will be subject to regulatory measures to introduce and achieve a level playing field for all operators during the transition to full competition and in the future.