By NEIL HARTNELL

Tribune Business Editor

THE BAHAMIAN communications industry's total revenues decreased by 7 per cent year-over-year in 2010, falling from $460 million to $428 million, as the sector's regulator pledged to introduce "universal service obligations" for Broadband Internet services.

The Utilities Regulation & Competition Authority (URCA), in its draft annual plan and fees schedule for 2012, released over the Christmas holiday, promised it would "champion the uptake of information and communications technology (ICT) as the enabler for economic growth", the universal Internet broadband service obligations being a key part of this strategy.

It is unclear on just who such universal service obligations will fall, but the likeliest candidates are the Bahamas Telecommunications Company (BTC) and Cable Bahamas. Both have nationwide reach, enabling them to fill such a role, and the latter is estimated to have a dominant 70 per cent market share.

How these two companies react remains to be seen, and the mechanics for how such universal service would work likely have yet to be worked out.

URCA, in its draft 2012 annual plan, described 100 per cent e-literacy (electronic literacy) as something that "should not be considered as an unrealistic goal" for the Bahamas.

While the regulator did not have responsibility for policy initiatives in this area, it noted that the electronic communications sector policy could be the vehicle to drive it.

"Accordingly, URCA intends to champion the uptake of ICT as the enabler for economic growth," the draft 2012 annual plan added.

"This would be consistent with the objectives elaborated in the current electronic communications sector policy. In its development of the next policy, however, URCA will be seeking to recommend that these roles be entrenched and strengthened so as to ensure there are no gaps in the policy and governance environment that would militate against the attainment of the goals for an e-society."

Thus the need for universal Internet broadband services throughout the Bahamas. "It will be important that the environment for sustainable competition be fiercely protected, and that URCA leverages every opportunity to ensure that market conditions favour investment and innovation in electronic communications and services," the regulator added.

"To this end, URCA considers that the delivery of adequate broadband services throughout the Bahamas should be the essence of the policy on universal service, and it is in this context that URCA will be seeking to implement universal service obligations to advance the socio-economic well being of residents of the Bahamas."

URCA then pledged to introduce "competition in wireless services without delay", as wireless broadband Internet was key to fulfilling this goal. However, such moves must be taken in accordance with the communications sector policy and legislation.

The regulator said the revised sector policy it is supposed to present to the Government "will be a pivotal instrument" when it comes to ICT being a key economic growth driver.

"Unquestionably, the future prosperity of the Bahamas lies with the speed with which it transitions to a fully digitally inclusive information society........," URCA said.

"To this end, therefore, URCA recognises that role that it must play as a champion for the uptake of ICTs in all facets of Bahamian society and economy."

URCA said broadband Internet penetration in the Bahamas was estimated at 18.94 subscribers per 100 persons, giving this nation some 66,882 connections in total.

This penetration rate placed the Bahamas ahead of Caribbean rivals such as Trinidad & Tobago, Jamaica and Antigua & Barbuda. Yet the Bahamas was well behind Bermuda's penetration rate of 61.75 subscribers per 100 persons, and St Kitts and Nevis and Barbados were also ahead, with 27.86 subscribers and 20.56 subscribers per 100 persons, respectively.

URCA expressed dissatisfaction with fixed-line voice penetration rates in the Bahamas, saying this compared "unfavourably" with most other countries in the Caribbean. The market has been dominated by BTC, although Cable Bahamas has entered in force following its acquisition of Systems Resource Group (SRG).

Penetration rates for fixed-line telephone subscribers in the Bahamas stood at 37.71 subscribers per 100 citizens at year-end 2010, a total of 129,314 lines in service.

This left the Bahamas well behind Bermuda, which has 89 fixed-line subscribers per 100 citizens. The Cayman Islands, Barbados, Antigua & Barbuda, Anguilla and St Kitts and Nevis all had more subscribers than this nation.

"The Bahamas, therefore, compares unfavourably with most countries in the sample with Jamaica and Trinidad & Tobago being the only countries with lower penetration rates," URCA said.

"Prices for fixed telephone services provided by BTC have remained steady over the past five years, with the last significant price change being made in November 2005. Residential access is currently provided at $15 per month ($12 for qualifying senior citizens), while business access is provided for $36 per month.

"Calls within the local charging area are free, while domestic long distance calls cost $0.18 per minute. BTC charges for international calls at rates ranging from $0.47 for calls to the US, to $0.85 for Cuba and countries outside the Caribbean and North America.

"SRG's fixed access services were primarily targeted at business customers, offering discounted per minute call rates using a fixed wireless network. SRG launched its new voice service in November 2011. Prices start at $14.99 per month, which includes unlimited local and on network calls with over 12 calling features."

On the cellular side, URCA said the Bahamas was the only country in the sample to retain a monopoly in this business via BTC. Penetration rates, though, were high, with 124.94 cell phones per 100 Bahamian citizens.

"The Bahamas is the only country in the sample which continues to have a monopoly provider of cellular mobile telephone services. Notwithstanding this, access to mobile telephone services in the Bahamas is virtually ubiquitous, with penetration exceeding one phone per person and significantly higher than some markets where competition exists," URCA said.

The communications industry regulator added that the $428 million in total revenues generated by the sector accounted for 5.7 per cent of the Bahamas' $7.53 billion gross domestic product (GDP) in 2010.

"In 2010, overall electronic communications sector revenues are estimated to have registered a decrease of approximately 7 per cent, from $460 million to $428 million," URCA added. It added that it had issued some 268 licences to operate in the industry between 2009-2011.