September 03, 2003
PUC Pulls Rug From Under SRG
On September 1 it was announced that Bahamas Telecommunications Company (BTC) will no longer have to provide leased circuits to any rival operators for fixed-line telephony conncections for the duration of its fixed-line exclusivity period.
The Public Utilities Commission (PUC) made the ruling to help boost the final price government hopes to receive if it goes through with the privatisation of the company formerly known as Batelco.
In effect, what the PUC is now saying is that having granted SRG "license rights", which when the license was given out could only be utilised through BTC's leased circuits, those rights can now be rendered useless by the withdrawl of the circuits. Remeber, BTC is a monopoly, which under its own license is obligated to provide these circuits to whomever the PUC licenses. And the PUC licensed SRG.
The position now is that SRG (DigiTel) has a license that has been made virtually ineffective.
This decision is going to have far-reaching consequences for the Bahamas' reputation as a country in which to do business. The Bahamas has already lost the confidence of the international telecommunications fraternity, many bankers and business persons in general. Who can safely enter into a business enterprise in the future if government, with the flick of a pen, can change the ground rules on which the business and its earnings expectations were based?
It is our opinion that the PUC is no longer the independent body it was originally intended to be. It appears to now be under government influence.
Condensed from today's Tribune Newspaper Editorial
Posted by admin at September 3, 2003 09:40 PM