Obligations For Telecommunications Operators

August 9, 2013

Various obligations have been placed on dominant players in the telecommunications industry to avoid the “throttling of competition” by a few large players, Chairman of the Board of the Regulatory Authority of Bermuda Kent Stewart said.

Mr Stewart said, “Among the responsibilities given to the Regulatory Authority when it was created earlier this year, was that of creating and maintaining a level playing field for Bermuda telecommunications companies, large and small. This is necessary in the tiny Bermuda telecommunications sector in order to avoid the throttling of competition by a few large and dominant players.

“This involves a process by which, speaking in very broad terms, dominant players are handicapped in order to allow non-dominant players to successfully compete.

“This process has involved a lengthy consultation with telecommunications companies. In the spirit of openness and transparency which underlies the operations of the Regulatory Authority, this consultation has ensured that their views have been taken into account in the defining of “Operators with Significant Market Power”, as the legislation calls them, and in the creation of obligations for those operators by which a level playing field is created.

“The Regulatory Authority would like to thank the telecommunications operators for the time and expertise shown as they have engaged with us on the numerous consultations we have thrust upon them.

“This week, we have published on our website a long, 180 +-page document which sets out those obligations and which will govern the operation of the Bermuda market for the foreseeable future. In total, 23 markets were analysed – nine retail and 14 wholesale.

The obligations placed on dominant players include, but are by no means limited to:

  • Allowing the Bermuda Telephone Company to raise its retail rates only by the change in the previous year’s Consumer Price Index, plus 2%.
  • Preventing Bermuda Cablevision from adjusting their retail rates for inflation.
  • Placing upon BTC an obligation to provide wholesale line rental for residential service at 15% less than the retail rate.
  • Placing upon BTC and Bermuda Cablevision an obligation to provide wholesale broadband access services at 15% less than the retail rate.
  • Placing upon Bermuda Digital Communications and Digicel the obligation of non-discrimination if either of them provides wholesale mobile services to a licensee.

Interested members of the public can obtain copies of the document here on the Authority’s website [PDF].

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Comments (8)

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  1. Amazed says:

    Yea but BTC is a major shareholder in Cablevision!

  2. O.k maybe it is just me but here we go again with a bunch of jokers that are still determine to drain the country bare through telecommunications. I don’t believe that the rates in this country need to be as high as it is and instead of trying to level the playing field, when are we going to see some people with ball to drive the cost down.

    We are not living in a day where places like T.E.L.C.O have the monopoly, there is far more competitors out here then it once was, and that is the more reason why we should see lower rates for a hole in the bucket in the middle of no where. You look all around the world and everything from cable television to cell phones you can receive great deals with the exception of this place, that has a few cell towers and cable providers.

    It is more heart wrenching that this government don’t do something in line with debating on the floor of the house legislation to drive the cost down in this industry, while also dealing with the greatest rip offs in our food bills and electricity. please don’t some jack bunny come on and try and reason stupidity to me as I am very well aware of how this country functions and who benefits the most and who the very share holders are at the top of the food chain in most of these establishments.

    We need to get real here before all hell breaks loose and we are not that far from an uprising, so to the jokers that don’t feel the pain, shut up and keep silent because you may just be the ones who get shocked the worst by the time all is said and DONE.

    Bermudians are tired of the deceptive and foolishness and it is only a matter of time before they are forced to take it to another level.

  3. New Bermudian says:

    I hear you, Mr. Santucci, but the Regulatory Authority is an independent body from the Government. No political influence, so Government is capable of changing policy and legislation, but it is not able- nor should be able- to influence or dictate the decisions of the RA.

    I am guessing (hoping?) that the RA will have considered all factors in making their decisions. I would also recommend perhaps voicing your concerns directly to them? That way you’d see first hand what they’re really made of.

    • They have had suggestions made to them and that is why I believe we need to take it to another level and there are ways that things could be tabled in the house of assembly to bring about changes in the long run, go the back door approach and pull on some of those still existing antiquated laws that can be combined with modern law to twist things in the favor of those that are really being burnt.

  4. JinJah says:

    Since the RA started working ISP’s have in many cases cut their rates in half, which is very good for consumers and local businesses. But the last mile carriers, BTC and Cablevision, are still charging very high rates that are not justified. Its down to a lack of competition and two companies that own each other keeping prices high.

    The RA should force these two companies to allow third party companies to come in and use their networks, like what happened with AT&T and the baby bells in the US. Rates would fall, service would improve and the island would benefit from faster, more affordable internet and telecom prices.

    After all the telephone and cable lines run across public and private land and BTC and Cablevision do not own that land, despite them wanting you to believe they own the network outright. If its in the public interest the two companies must be told this is the new world order and they have to comply. After all BTC and Cablevision have gotten away with highway robbery for so many years now.

  5. Kent Stewart says:

    Be patient please Mr. Santucci, the decision we just released will help move the entire industry in the direction we all desire…. Thanks for vote JinJah, you have it right, we are free to make the best decisions we can for Bermuda, free of influence/interference. Yes, this decision does exactly that, third parties can now use thei BTC and Bda Cablevision networks… I don’t expect many to read the entire 180+ pages but check out the table at the beginning to see who has to do what and when. Mr. Santucci, feel free to call me, or anyone else, at 474 6025 anytime to talk telecommunications!