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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 Nassau, The Bahamas – The Utilities Regulation and Competition Authority of The Bahamas (URCA) issued an adjudication and order to BTC today (July 29) for engaging in business practices which contravened sections 67 and 69 of the Communications Act resulting in a fine of $243,442.76 among other penalties.
The particulars of the complaint, originally filed by Systems Resource Group (SRG), a subsidiary of the Cable Bahamas group of companies, are that:
*SRG had approached several (wholesale) businesses to display and sell SRG’s “’IndiGO’ calling card”;
*The wholesale businesses advised SRG that they had exclusive supply agreements with BTC that prohibited them from selling the SRG calling cards;
*As a result of the aforementioned, since March 2012, SRG has been unable to distribute its cards through some wholesalers due to the wholesalers’ exclusivity agreement with BTC.
During a press briefing at URCA’s headquarters, Kathleen Riviere-Smith, Chief Executive Officer, (CEO), emphasised that “URCA takes seriously its responsibility for the regulation of the electronic communications sector for the benefit of the public in The Bahamas.
“This includes, as mandated in sections 65-69 of the Communications Act, addressing conduct which prevents, restricts or distorts fair competition amongst service providers.”
Stephen Bereaux, director of policy and regulation and Mavis Johnson-Collie, corporate and consumer relations manager participated in the briefing.
The CEO said following a detailed investigation URCA determined that the exclusive agreement that BTC shares with its Master Distributors, infringes the Communications Act for the following reasons:
· The agreement (which relates to the supply of the calling cards) is the subject of electronic “communication matters” as defined by section 65 of the Communication Act, particularly when read in conjunction with section 65 (c) (ii) which states that communications matters are defined as including: “the provision or making available of services or facilities which are provided or made available … for the purpose of facilitating the use of any network or carriage service…
· The supply terms of BTC’s Master Distributor Agreement which require buyers not to distribute products and services from any other carrier that offers phone service in The Bahamas, has the effect of preventing, restricting or distorting competition such that it appreciably affects trade within The Bahamas; and
· There is no justification which states the criteria as set out in sections 68 of the Communications Act to exempt the Master Distributor Agreement from sections 67 and/or 69 of the Communications Act.
Additionally, URCA’s investigations also revealed that:
*BTC is a licensee which is dominant in the market for the upstream supply of calling cards for long distance two stage dialing. BTC is also dominant in the market for the retail supply of long distance two stage dialing services;
*The conduct which is the subject of this adjudication is conduct which amounts to an abuse of a dominant position, because it is a single branding agreement which has the effect of preventing, restricting or distorting competition.
URCA has also ordered BTC to undertake the following:
*Immediately cease and desist from any practice, conduct or behaviour which does not allow future access to potential competitors in the relevant market for two stage LD calling cards by executing or renewing any Master Distributors Agreement or any similar Agreement which includes violating provisions as contained in the Licensee’s existing Master Distributors Agreement.
*Immediately amend the Master Distributors Agreement by deleting the violating provisions in the existing Agreement;
*Submit a draft copy of the amended Master Distributors Agreement for approval by URCA within 14 calendar days of today’s order;
*Once the approved amendment is accepted by URCA, BTC is to notify all existing Master Distributors in writing, of the amendment to the existing Master Distributors Agreement. The written notification must be submitted to URCA in 14 calendar days of URCA’s approval of the proposed amendment.
(a) The notification must clearly state that the provisions of the existing agreement are ineffectual, void and unenforceable and
(b) An offer to each Master Distributor to execute an amended Master Distributors Agreement.
Further, BTC is required to submit within days a letter of compliance detailing all steps, efforts, actions and measures taken by the licensee to fully comply with this order.
“URCA as the regulator of the electronic communications sector closely monitors the activities of all licensees in the sector to ensure and promote fair competition and to protect the interests and rights of consumers in the sector,” the CEO said.
During the briefing, URCA also unveiled the printed version of its new Consumer Protection Regulations which includes customer quality of service standards, which sets the time frame for the completion of contractual services and a section on consumer obligations.
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