BVI Finally Decides On Telecoms Licences

by Leroy Baker, Lawandtax-News.com, New York

26 April 2007

After some months of hesitation, the British Virgin Islands Government has announced a telecommunications liberalisation policy which will see the three existing operators competing in all sectors of the market for the next three years.

New licences were supposed to be issued by the end of January, the moment when C&W's 40-year monopoly licence expired; but the government appeared to be unable to make up its mind over how many new licences to issue, so that the BVI's new Telecommunications Regulatory Commission was forced to give a series on monthly extensions to existing licence holders, including fixed-line operator C&W, mobile operator CCT Global Communications and BVI Cable TV.

Minister for Communications and Works Elmore Stoutt said that the objective of the liberalisation policy is to create the conditions for a fully effective and successful telecoms sector in the BVI. “Government promised the people of the BVI that it would liberalise the telecommunications industry. This policy therefore sets the process in motion and as a result, the public can look forward to better services and prices,” he said.

The Government has invited each of the three current licensed public suppliers to apply through the Telecommunications Regulatory Commission for licences to operate across all three sectors: fixed line, mobile and cable. Applications are due by close of business on May 4, 2007. Other applicants who will be disappointed include Digicel and Virgin Live Media.

Although the market is only opened to the three existing operators, successful applicants will be able to compete in all areas of telecommunications including fixed, mobile and international services, as well as Internet and the distribution of cable network and wireless network television programme services.

Once approval is given, licences will be issued to the current operators under Sections 15.(2), 15.(3) and 15.(4) of the Telecommunications Act for a period of 15 years. At the end of the first three year period, however, the Minister will conduct a review to determine if the market can accommodate additional telecommunications operators.

The Legislative Council passed the Telecommunications Act on June 2, 2006. It was assented to by the Governor on June 13, 2006, and proclaimed on October 24, 2006.

In March, CCT Global Communications, which currently holds the only mobile phone services licence in the British Virgin Islands, signed an Interconnection Agreement Memorandum of Understanding (MOU) with monopoly fixed-line provider Cable And Wireless.

There had been a war of words between the companies pending the issue of the new 'unitary' licences. CCT Director Meade Malone had accused Cable and Wireless of predatory behaviour, asserting that C&W had attempted to drive CCT into bankruptcy, continued to charge it interconnection rates above its own retail tariffs, and had disrupted CCT's network by testing a wireless communications system over the same frequencies used by CCT.

Cable & Wireless chief executive Vance Lewis had denied behaving unreasonably towards CCT: "All efforts we have undertaken have been done with government approval and within legal and ethical boundaries. Government owns the frequency, and all of this was accomplished with the understanding that a license was to be received by the end of January 2007," Lewis said.

CCT said in February that it had formed a partnership with EOCG group, a regional mobile firm with operations in Bonaire, Curacao, and Aruba, which would allow it to offer cheaper international roaming, plus Direct TV service.

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