business@tribunemedia.net
THURSDAY, FEBRUARY 29, 2024
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URCA fears on price in communications market By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net REGULATORS have assessed the competition within retail fixed electronic communications service market and determined “excessive pricing” was a common anti-competitive concern for each retail market. The Utilities Regulation and Competition Authority (URCA) said it is concerned with the ability of powerful providers “to abuse their position of dominance to the detriment of consumers”. URCA was reporting in its preliminary determination on the assessment of significant market power in the electronic communications sector, addressing providers with significant market power (SMP).
t 3FHVMBUPS XBSZ PG BCJMJUZ PG QSPWJEFST UP BCVTF EPNJOBODF t $PODFSOT PWFS BGGPSEBCJMJUZ GPS DVTUPNFST XJUI MJNJUFE PQUJPOT The regulator’s report said all of the markets reviewed had identified a provider with “exclusivity or a very strong market position” which may serve as an incentive to overcharge consumers or shut out competition. “URCA is concerned with the ability of SMP operators to abuse their position of dominance to the detriment of consumers. In all the markets considered in this market
review, URCA has preliminarily found an SMP operator which has exclusivity or a very strong market position and is therefore not subject to constraints arising from competition or potential new market entries,” said the regulator. “In these circumstances, an SMP operator may have an incentive to engage in behaviours that exploit its position of market power by either
extracting economic rent directly from consumers or by aiming to harm or prevent competition from emerging within the market, either by making it more difficult for existing alternative operators to compete fairly, using predatory pricing or margin squeezes, and/or by preventing any potential new operators to enter the market.” The Bahamas Telecommunications Company (BTC) was identified as the SMP for retail fixed voice services and the major competition concern was the provider’s ability to raise its retail prices to an extent it would result in “affordability concerns” for consumers that only want that service. URCA said they are not concerned about BTC
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Oil waste facility opens in GB THE Clean Marine Group (CMG) has opened its MARPOL Port Reception Facility in Grand Bahama. The facility occupies a four-acre site adjacent to the Grand Bahama Shipyard and will repurpose oily waste from vessels visiting The Bahamas. The waste will be converted into Reprocessed Fuel Oil, which can be integrated into the local economy as a more sustainable alternative to virgin fossil fuels. The facility is capable of processing up to 50,000 tons of oily waste from vessels annually and the reprocessed fuel can be resold,
reducing the cost of importing fuel to the Islands. Robert Speller, general manager for Clean Marine Group, said the $20m project “underscores” the company’s commitment to marine conservation. “We’re excited to present our forward-thinking MARPOL Port Reception Facility,” he said. “Our state-of-the-art facility represents a significant investment by Clean Marine of over $20m into Freeport’s maritime infrastructure and underscores our steadfast commitment to marine conservation. By
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Carey wins Chamber vote and sets sights on future By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net JAMES Carey maintained his position as the chamber president after the Grand Bahama Chamber of Commerce elections yesterday. Mr Carey was elected as president for the third consecutive time and said this year the chamber will be continuing their efforts to push Grand Bahama’s economy forward. He said they are working to get businesses prepared for the new developments that are coming to Grand Bahama, such as Carnival’s $600m Celebration Key project, which is expected
JAMES CAREY to lead a cruise-driven 5.5m visitor surge to Grand Bahama by 2028, as well as the Royal Caribbean, Mediterranean Shipping Company and ITM Group consortium’s development. He said: “I’m looking forward to continuing in
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Cap to keep people from being priced out of broadband access By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net A CAP is to prevent both the Bahamas Telecommunications Company (BTC) and Cable Bahamas Limited (CBL) from pricing people out of entry level broadband plans. The limit will allow providers to match the rise in inflation to a maximum of five percent, even if inflation goes higher than that value. The Utilities Regulation and Competition Authority (URCA), in its preliminary determination on the assessment of significant market power (SMP) in the electronic communications said both the Bahamas Telecommunications Company (BTC) and Cable Bahamas Limited (CBL) cannot increase the price of entry-level standalone fixed broadband plans over the previous year’s inflation, capped at five percent. “Regarding Retail Fixed Broadband Services, the market is divided into
two geographic segments, with Cable Bahamas Limited (CBL) having SMP in areas where it competes with BTC, and BTC holding SMP in regions without CBL’s presence,” said the regulator. “URCA proposes that both providers are required to continue offering current standalone fixed broadband plans and bundles comprising fixed voice and fixed broadband services. “Also, subject to URCA’s pre-approval, both providers shall not increase the prices of entry-level standalone fixed broadband plans over last year’s inflation, or five percent a year in case inflation exceeds five percent during that year. “Additionally, BTC must ensure uniform pricing across the two geographic areas.” URCA also said that BTC can not increase the price of standalone fixed voice plans over the previous year’s inflation, up to five percent and CBL must abide by the same terms
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