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 for its standalone pay TV service.

“URCA proposes that BTC will be required to continue offering its current standalone fixed voice tariff plans and, subject to URCA’s pre-approval, BTC shall not increase prices of entry-level standalone fixed voice plans over last year’s inflation, or 5 percent a year in case inflation exceeds five percent during that year,” said the regulator

“In the area of Retail Pay TV Services, URCA’s preliminary position is that CBL is the SMP provider of retail pay TV services and is subject to restrictions preventing price increases beyond the inflation rate or five percent annually for its entry-level standalone pay TV product.

“This measure aims to promote access to essential services by protecting consumers from potential price hikes.”

URCA also determined that both providers must notify of any changes in retail tariff plans for products that do not require approval for changes and must publish all tariffs on their websites for consumers.

URCA said: “Beyond the above market-specific measures, both BTC and CBL will continue to be subject to URCA’s Accounting Separation Guidelines.

“For standalone products that do not require URCA’s pre-approval for changes, the preliminary view is that both providers will be required to notify URCA of any changes in retail tariff plans.

“Additionally, both operators are mandated to publish all tariffs on their websites, enhancing transparency and accessibility for consumers.”