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TUESDAY, MAY 16, 2023
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Cable ‘accelerates’ fibre due to Elon Musk threat • Billionaire’s Starlink satellite Internet new ‘headwind’ • BISX-listed firm’s new network passes 30,000 homes • Chief executive ‘not sure business case’ for 5G yet
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABLE Bahamas is “accelerating” the roll-out of its fibre-to-the-home network infrastructure in response to the competitive “threat” posed by Elon Musk’s Starlink, its chief executive revealed yesterday. Franklyn Butler told Tribune Business the BISX-listed communications provider will respond rapidly to safeguard its
market share after Bahamian regulators licensed the Tesla and Twitter magnate’s satellite Internet service provider to operate in this nation exactly three months ago. Disclosing that its Aliv fibre network now passes 30,000 New Providence homes, he added that the product will “officially be launching” across several communities next week where homeowners will be given the chance to switch from Cable Bahamas’ existing HFC (hybrid fibre coaxial) infrastructure so
they can enjoy a “better experience” with broadband Internet and video TV services. Acknowledging that the REV and Aliv operator has “had our challenges over the last few years” with customer service issues, Mr Butler also echoed industry regulator, the Utilities Regulation and Competition Authority (URCA), in saying he was “not sure we see a business case for 5G (fifth generation technology) in The Bahamas at the moment”.
While Cable Bahamas and its Aliv mobile affiliate will monitor 5G’s progress and evolution, he added that the group will only invest in technology where it “makes sense” and the returns to shareholders are clear. The Cable chief spoke as the company’s turnaround strategy showed signs of gaining further momentum, with figures for the nine months to end-March 2023 revealing a positive $12.52m bottom line
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Central Bank takes $9m hit over abandoned HQ project Super Value’s ‘egg relief’ amid BPL containment By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SUPER Value is aiming to reduce egg prices to $1.99 per carton “as quickly as possible” amid hopes its solar roll-out can contain surging energy costs to just a 10-20 percent increase, its president revealed yesterday. Debra Symonette told Tribune Business the 13-store chain has enjoyed a “big relief” on egg prices, which it was selling on ‘special’ at $5 for two dozen-strong cases of the Hillandale brand this weekend, after farmers replenished their stocks following a devastating outbreak of bird flu. Disclosing that food prices in general continue to stabilise, with far fewer of the “huge” increases experiences post-pandemic, she nevertheless warned Bahamian consumers that costs “may not go all the way down” to where they were prior to COVID’s outbreak in March 2020. “We’ve definitely seen a big relief in the price of
eggs,” Ms Symonette told this newspaper. “We’re hoping to take it even further down in the near future. I think farmers have just got over the crisis they were in with the bird flu and shipping costs. When all the birds died that was a major issue, and they’ve managed to replenish the stocks so they have more eggs available now. “We’re really hoping to get the price down to $1.99 per dozen case. If we can do it for next week, we will. We’re going to do it as soon as possible. We have seen a bit of a decrease in beef and poultry, but otherwise things are remaining pretty much the same. At least we’re not seeing as many huge price increases as we were before. We’ll probably see a little increase here and there, but nothing like what we were seeing before.” Ms Symonette said a reduction in shipping and freight costs, increased food supplies and an easing of the post-COVID supply chain bottlenecks had all factored into a levelling off
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Payment fraud up eight-fold at $21m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PAYMENT fraud increased in value almost eight-fold to $21.2m in 2022 with debit cards accounting for four out of every five reported cases, it was revealed yesterday. The Central Bank, in its 2022 annual report, revealed that while the number of reported incidents fell by 24.2 percent year-over-year there was a significant increase in the sums involved. “In keeping with the emphasis on consumer
financial protection, the Central Bank also collects data on fraud relative to cheques, debit and credit cards,” the regulator said. “In 2022, the reported number of such cases reduced by 24.2 percent to 6,319. However, the corresponding value expanded to $21.2m from $2.6m. “Analysed by type, instances of debit card fraud constituted 80.5 percent of total cases, while the attendant value comprised 71.4 percent of the overall value. Reported credit card fraud comprised 18.9 percent of total cases, and
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Central Bank yesterday revealed it has been forced to write-off almost $9m after the project to construct its new Royal Victoria Gardens headquarters was abandoned, with further impairment charges likely in 2023. The banking sector regulator, in the financial statements attached to its just-released 2022 annual report, disclosed the extent of the immediate financial hit it has sustained as a result of not proceeding with a development where six years worth of work has effectively gone to waste. Detailing the impact, note four in the financial statements on property, plant and equipment said: “The Bank’s ongoing construction of its new premises on the Royal Victoria Gardens (RVG)
site located between East Street and Parliament Street, south of Shirley Street and north of East Hill Street in the city of Nassau, Bahamas, continued throughout the year. “By resolution in Parliament, the Government of the Bahamas authorised the transfer of property to the Bank at a nominal cost of $10. The site preparation and demolition phase for the project began in 2020 and the architectural designs were completed. “In March 2023, the Board of Directors approved the termination of the ‘New premises project’ and the transfer of the property ownership back to the Government. As a result, the Bank has recognised an impairment loss associated with this project totalling $8.92m as at yearend [2022]. Additionally, the Bank has estimated
ARTIST rendering of the winning design for what was supposed to be the future building for the Central Bank of The Bahamas.
• And warns further writeoffs to come in 2023 • Minnis: My $12m loss estimate ‘conservative’ • Cash, Data facility to break SEE PAGE B4 ground by June 30
Central Bank exceeded Govt lending limits at year-end ‘22 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE CENTRAL Bank would have massively exceeded its legal lending limits to the Government had the latter’s accessing of $232.3m in IMF special drawing rights (SDRs) been included in the 2022 year-end calculation. The banking regulator’s audited 2022 financial statements, released yesterday to accompany its annual report, reveal it had in any case exceeded
its legal limit for “temporary” loan advances to the Government by some $2.3m as of end-December 2022 although the breach was deemed to create no concern. However, the Central Bank’s annual financial statements underline the urgency with which its governing Act had to be changed by Parliament recently to exclude the International Monetary Fund (IMF) SDRs from the calculation involving its temporary loan
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CENTRAL BANK OF THE BAHAMAS