Telecommunications big hitters are reined in

The Regulatory Authority of Bermuda has created obligations to properly maintain a level playing field for the telecommuncations sector.

In a press statement, Ken Stewart, chairman of the board said the authority was “necessary” in order to “avoid the throttling of competition by a few large and dominant players”.

Mr Stewart said this week, the authority published on its website a long, 180+ page document that sets out those obligations and that 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 we have 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 per cent.

• 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 per cent less than the retail rate.

• Placing upon BTC and Bermuda Cablevision an obligation to provide wholesale broadband access services at 15 per cent 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.”

Mr Stewart said the process involved lengthy consultation with telecommunication 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.”

Visit rab.bm for more information.