‘Stop Starlink from offering cellular services in Nassau’

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

A SENIOR communications executive has called for Starlink to be prevented from providing cellular services in New Providence, calling the satellite-based service as effectively “the third mobile operator”.

Rawiya Rahming, VP of legal and regulatory at CBL group, speaking at URCA’s digital transformation forum yesterday, said low earth orbit (LEO) satellite services such as Starlink can provide cost-effective internet in hard-to-reach areas and after natural disasters, but said the service should be properly regulated as over time it will become more popular and affordable.

She said: “We would like to see transparent regulation of low Earth orbit satellite technology providers.

“I believe and I share the belief that LEOs can provide a cost-effective means of connecting hard-to-reach area areas where internet terrestrial fibre is not really practical. LEOs can be useful to provide network resiliency in the face of natural disasters.

“So it’s important to note that services delivered by LEOs are going to become more affordable as the years go by, and as their use is more widely adopted.”

She said Starlink has indicated they are launching satellite cellular services next year and that the company is “the third mobile operator” although the government has decided not to grant them a mobile licence.

She said: “Starlink, which was licenced by URCA in 2022 has indicated actually that it’s going to be launching satellite cellular services, including SMS functionalities next year.

“So they’re not just looking at resiliency, they’re not just covering hard-to-reach areas, LEOs, I would argue, are the third mobile operator in the Bahamas albeit the government of the Bahamas has taken the position that it would take at this time the advice of URCA and not grant a third mobile licence.”

She said regulators internationally are “struggling” with the regulation of this new industry and that until the government put proper regulation in place and reassessed the decision to not issue a third mobile licence Starlink should be precluded from providing cellular service in New Providence.

She said: “I know that regulators all over the world are struggling with how to properly and appropriately regulate this disruptive technology and don’t want to fetter its rollout. However, regulation guardrails have to be put in place that are appropriate.

“And to the extent that the government has indicated that it’s not going to issue a third mobile licence at this time, until the government has made an assessment based on changed circumstances or the factors that they considered leading to that determination is changed. I would urge that Starlink be precluded from providing these types of services in areas like New Providence which amount to mobile services.”

Ms Rahming said proper regulation should be put in place to support digital transformation and that with competition from “traditional and grey market providers” market liberalisation is the next step.

She said: “We would like to see regulation of retail services by market forces and a removal of all SMP significant market power designations. Appropriate legal and regulatory framework should set the guardrails and enable digital transformation.

“I submit that the industry springboard into the information age with technological innovation and digital digitalisation. Now, competition from traditional and grey market providers being present in the Bahamian electronic communications sector, market liberalisation is the necessary next step in the furtherance of this revolution.”

She said SMP designations “fetter” a provider’s ability to be “nimble and agile” and that URCA should reduce regulation of retail markets and focus on the wholesale activities of major operators.

She said: “The CPL group implores our regulator to utilise market-led regulation and remove all accepted designations, which fetter an operator’s necessary ability to be nimble and agile in a competitive environment.

“Ex post competition investigations, collaboration, dialogue and coordination in regulatory matters is advocated and we urge that reducing the regulation of retail markets and instead concentrating on major operators wholesale activities should be employed.”