Bahamian Ownership

1. How will the Government ensure participation by Bahamians in the ownership of the new provider?

The Government has created a new Bahamian company (‘NewCo’) to hold the licenses to be granted by URCA.

The successful applicant of the selection process, Cable Bahamas Limited, will have board and management control of NewCo, but will be the minority shareholder.

Another company, HoldingCo, will be created to hold the majority shareholding (51.75%) in NewCo on behalf of the Bahamian people.

2. Will HoldingCo be a Government agency?
   
   

No, it will not.

Although the Government may serve as the initial and sole shareholder in HoldingCo, this will only be temporary in nature. Government’s role will solely be to facilitate the immediate transfer of shares to eligible Bahamian investors.

3. How will HoldingCo investors be selected?

The Government intends for the ownership by Bahamians to be as widely distributed as possible. In order to ensure that HoldingCo’s share of NewCo’s investment requirements can be met in the near future, the Task Force and its advisors will target institutional investors (e.g. pension funds, cooperative credit unions) that cater to a broad base of Bahamians.  HoldingCo’s shares will be offered using a Private Placement Memorandum.

Consumers

4. Who will regulate the work of cellular service providers in The Bahamas?

Cellular services in The Bahamas are regulated by URCA. All questions about regulation should be referred to them. The mandate of our Task Force is limited to developing and overseeing the process through which a second entrant in The Bahamas cellular market will be selected.

5. Once a provider is selected, how long until the new service is available?

Ultimately, the timing of the rollout will be dependent on the project management approach of NewCo. That said, our objective was to secure coverage for the whole of The Bahamas.

NewCo will be required, on a phased basis to secure coverage for all inhabited islands within two years of the award of a licence.

6. Now that we have consumer choice, are there associated costs with switching providers?
   
   

This is a question for URCA. We encourage persons to speak with their cell phone providers, as well as with URCA, to better understand their rights as consumers and subscribers.

7. How will this improve my access to mobile and broadband technology?
   
   

Consumers will have a choice.

The RFP was designed to attract world class bidders. Providers seeking an opportunity to enter the Bahamian market have been asked to meet the highest international standards for cellular service.

8. What consumer protection measures will be put in place to protect Bahamian subscribers?

Questions about consumer protection and cellular regulation should be referred to URCA.

9. Will there be only one additional service provider chosen, or is there an option for a third new service providers to enter into The Bahamian market?

Under the law, the Government won’t be able to issue a licence to a third mobile operator before April 5, 2016. 

That said, it is the intention of the Government to delay the possible entry of a third cellular mobile operator for at least three years from the commercial launch of the second cellular mobile operator.

RFP Process

10. What was the selection process for the RFP?
    
    

The process as outlined in the RFP met three criteria: It was open, calling on bidders from potential suppliers both in The Bahamas and around the world. It was fair, being based on objective, measurable criteria. And it was transparent, meeting the highest standards of accountability – and independence.

The first step in the process was an assessment of Proposals received in response to the request for proposals (RFP), which took into account the technical and financial capabilities of bidders. This assessment was conducted by a multi-sectoral, multi-disciplinary evaluation committee with a wide range of skill sets (technical, legal, and financial). The evaluation committee selected qualified bidders from this phase to advance to the second phase, the spectrum auction that was administered by URCA.  At the end of the selection process the successful applicant, Cable Bahamas Limited, was the one deemed to have met all of the requirements of both phases, as well as all other requirements set out in the RFP.

11. What were the evaluation criteria? 
    
    

The evaluation criteria adopted in this process are outlined in the RFP.

The successful bidder did the best job of demonstrating that it would:

• Enable Bahamians to achieve majority equity ownership of the new cellular provider;
• Ensure reliable access to cellular service across all The Bahamas;
• Provide international standards for network connectivity and download speeds; and
• Introduce more affordable prices to bring The Bahamas in line with international benchmarks.

12. How much spectrum has been made available?
    
    

For the purpose of this Selection Process, URCA has made available 119MHz of spectrum in the 700 MHz, 850 MHz, 1700/2100 MHz and 1900 MHz Bands to enable the provisioning of cellular mobile services in The Bahamas.

13. What regulatory requirements will the new entrant and/or BTC have to meet?
    
    

Our sole mandate is to develop a process that will deliver a world-class cellular provider to The Bahamas. URCA is the sector’s regulator, and we encourage you to send any questions about regulation of The Bahamas’ cellular services to them.

14. Will there be any outside advisors to help with the selection process?
    
    

Our Task Force is made of autonomous representatives. An autonomous evaluation committee was responsible for the final selection. That said, we have worked with the regulator, URCA, as well as leading law firms, accounting firms and management firms to ensure that our procurement process was based on international best-practices.

Task Force

15. What is the purpose of the Cellular Liberalisation Task Force?

Our Task Force was created to develop and oversee the process for selecting the second mobile cellular operator in The Bahamas.

16. How were members of the Task Force selected?
    
    

Government took a skills and experience-based approach to nominating members of the Task Force. They were selected for their expertise in economic, legal, competition, industry, and communications sector modernization.

17. How long will the Task Force be in place?

The Task Force was established in April of 2014. It will likely remain in place until a licence is awarded to NewCo.

18. How has Government Legislation been changed to allow for a second cellular company to enter the market?

There has been no recent change in legislation. The intention of the Bahamas Government was always to identify a second entrant into the cellular market once BTC’s exclusivity agreement expired.

In 2009, the Government updated its legislation to provide BTC exclusivity over cellular service provision until April 2014.  This liberalisation initiative is an expected outcome of the legislative decisions made at the time.