August 31, 2015 -- The Cellular Liberalization Task Force (the Task Force) advises that on August 19, 2015, the Utilities Regulation and Competition Authority (URCA) resumed Phase 2 of the competitive selection process for the second cellular mobile provider. The auction itself will take place during the month of September.
Background
On April 29, 2015 the Task Force announced that Cable Bahamas Ltd. (CBL) and Virgin Mobile (Bahamas) Limited (VMBL) had both moved forward to the auction phase of the selection process, which was scheduled to be conducted by URCA in May.
Postponement and Resumption of Auction
It will be recalled that in April, URCA launched an investigation into the purpose of several electronic communications towers that had been or were being constructed by CBL throughout New Providence.
Subsequently URCA advised the Task Force that matters arising in the investigation had the potential to impact the selection process, and that it was advisable to postpone Phase 2 of the selection process pending their full consideration and determination.
In accordance with Phase 2 under the Request for Proposals (dated 13th November 2014) and the Auction Rules, URCA concluded that CBL committed a breach of the Auction Rules that did not warrant disqualification from the process. CBL has, however, incurred a financial penalty in accordance with the Auction Rules, and Phase 2 of the process has resumed.
Next Steps
Upon completion of Phase 2, the following activities will be undertaken:
• Determination of the applicant having the highest combined score from Phases 1 and 2;
• Formation of the new company (NewCo) that will be issued the relevant licences;
• Formation of the company (HoldingCo) that will be owned by Bahamians and that will have the majority equity ownership interest in NewCo.
The Task Force and URCA remain committed to ensuring that the Government’s policy objectives for cellular liberalisation are achieved in a fair and timely manner.
Further information about the selection process and key contacts are available on the website of the Cellular Liberalisation Task Force, http://www.bahamas.gov.bs/cellularliberalisation.
