Barbados FTC Denies Digicel Motion to Review Consolidated RIO Decision

The Barbados Fair Trading Commission has denied a motion by Digicel for review of a February 2010 decision on Cable & Wireless' Consolidated Reference Interconnection Offer (RIO).  In its submissions, Digicel alleged that the FTC's February 2010 decision was reached in breach of the principles of natural justice and, in particular, that the FTC failed to adequately consult Digicel on certain amendments to the Consolidated RIO requested by Cable & Wireless. 

As part of its motion for review, Digicel submitted that the FTC should communicate to Digicel any changes made, no matter how minor, to the Consolidated RIO.  In its decision, the FTC concluded that this is not required by the Barbados Telecommunications Act.  The FTC also noted that, as part of the proceeding leading up to its February 2010 decision, Digicel had been given ample opportunity to make submissions on the amendments to the Consolidated RIO and therefore that there was no breach of the principles of natural justice.

This decision is a good illustration of the fact that telecom regulators, when adjudicating interconnection disputes, must ensure that all parties are given an opportunity to be heard.  This is particularly true in the Caribbean context, where the telecom industry is becoming increasingly litigious (especially in interconnection matters).

Bahamas Consultation on Content Regulation

Over the past few months, the Bahamas Utilities Regulation and Competition Authority (URCA) has been conducting a consultation on content regulation. Under the newly-promulgated Communications Act, 2009, URCA is mandated to issue new Codes of Practice for audiovisual media services and to develop complaints-handling procedures for dealing with complaints by the public regarding alleged breaches of the Codes. These Codes are intended to cover areas such as the protection of children, harm and offence, taste and decency, accuracy and fairness, political broadcasts, advertising and sponsorship, and guaranteed access to certain kinds of content and services (e.g. relating to national emergencies and disasters).

In the consultation document, published last February, URCA indicated that it was inclined to delegate this task to an industry Working Group, composed of representatives of the broadcasters, cable operator, independent production companies and the public at large. However, if the Statement of Results published last week is any indication, URCA may have some difficulty in generating sufficient interest from these stakeholders to make this process work. This paragraph from the Executive Summary is particularly revealing:

(...) URCA is disappointed with the low number of responses received to an important consultation that will affect all Bahamian radio and TV broadcasters. It is particularly discouraging that none of the broadcasters took the opportunity to formally respond to the consultation. As URCA is proposing a co-regulatory framework to develop the Codes of Practice, it does not auger well for the proposed framework if the industry did not respond to the public consultation, the first phase of the process. For such a model to be effective, it is necessary for regulated companies to participate actively in the regulatory process, for example by responding to consultations that directly affect them. The fact that no broadcasters responded to URCA’s consultation on developing Codes of Practice highlights the fact that Bahamian companies might not yet be accustomed to playing their required role in the development and implementation of public policy.

Unfortunately, this lack of participation in regulatory proceedings is common across the Caribbean. This is particularly true in regulatory proceedings involving broadcasters. Contrary to the Caribbean companies operating in the telecommunications sphere (e.g. Digicel, Cable & Wireless/LIME, etc), the Caribbean broadcasters are generally quite small and localized. As a result, they suffer from a lack of scale and resources, which prevents them from employing dedicated legal or policy experts – either in-house or through industry groups – to manage regulatory affairs. In smaller countries such as The Bahamas, companies have limited resources, making it harder for them to devote time and effort to regulatory affairs. One solution to this conundrum may be for broadcasters to pool their resources on a regional basis. Perhaps this is a gap that could be filled by the Caribbean Broadcasting Union?

When will Cable & Wireless rollout its IPTV service in the Caribbean?

Yesterday, Cable & Wireless Communications made several references to its forthcoming Caribbean IPTV rollout during the presentation of its 2009/2010 financial results. Whilst much of the discussion was focused on CWC's TV service in Panama, the rollout of TV services across the Caribbean was also mentioned on a couple of occasions, including during the Q&A's with financial analysts. It was described as one of CWC's 2010/2011 priorities on page 30 of the slides.

These comments are consistent with a press release issued last fall, in which CWC announced a partnership with U.S.-based Move Networks for a rollout of IPTV services across CWI’s global operations. Yesterday, Telecommunications Services of Trinidad and Tobago (TSTT), which is owned jointly by the Government of Trinidad and Tobago and CWC, announced a similar partnership with another U.S.-based IPTV provider, Calix Inc.

Entering the Caribbean TV market will not be easy for CWC. In addition to the challenges associated with securing the intellectual property rights for popular US programming, CWC will need to convince the local population that its service is superior than the grey and black market satellite services, which are currently rampant across the Caribbean. Perhaps one way to accomplish this objective is to deliver a comprehensive list of local Caribbean TV channels and to focus on IPTV's ability to deliver advanced TV services which are not available on satellite, including interactive services, VOD services and "TV Everywhere" services.