G.O.B. reforms telecommunications act
But the bombshell of the day proved to be the proposal of a bill to reform the telecommunications act. While Minister of Public Utilities Ralph Fonseca says the reform has been in the works for some time, it is certain the decision by Belize Telecommunications Limited to rebalance rates has something to do with the timing. The revamped act is designed to give the Public Utilities Commission, P.U.C., the teeth they will need in the legal battle that will play out in the next few months.
Ralph Fonseca, Min. of Budget Management
“The license granted to B.T.L. by the UDP was exclusive, which means that in an era where liberalisation and competition in business are the norm, we in Belize are still operating under monopoly conditions, where there is one telecommunications provider, who is in a position to tell us all, the people of this country, either to take the services offered at the cost offered regardless of the standards, or leave the service. A monopoly telecommunication provider that believes it need only inform the minister about tariff changes. A telecommunication provider that after more than tripling its share value, and receiving way above average returns right up to last year, increases basic rates, and now wages a public relations war on our government because of taxes. We believe that any thinking person knows that when you have retained earnings of ninety-three million dollars plus, your profits are above normal despite any tax. It was out of this factual background, that this government, already on track to remove the monopoly with its own solemn manifesto commitment, reviewed seriously the call by the Public Service Union and the Belize Teachers Union and the public of Belize on BTL, to reduce its rates for its service. This analysis demanded a P.U.C. fully fortified to withstand any legalistic attack.”
“In short Madam Speaker, this bill seeks to introduce competition into the telecommunications sector by allowing more than one service provider to provide telecommunications services, empower the Public Utilities Commission to regulate the entire telecommunications industry in a transparent manner. Empower the P.U.C. to regulate price increases by any telecommunications service providers. In other words, there will no longer be unilateral price increases. Empower the Public Utilities Commission to establish regulatory standards for consumer protection, ensure that each user of telephone facilities, has free access in cases of emergency to the police, hospital and ambulance. Empower the P.U.C. to establish rates in situations of anti-competitive practices. Empower the P.U.C. to prohibit anti-competitive pricing, which distort the true worth of the service, for the sole benefit of the service provider. Each telecommunications provider, will be issued a licence by the P.U.C. to offer telecommunication services within Belize.”
Dean Barrow, Leader of the Opposition
“We listened to the Minister of Budget Management’s broadside against B.T.L. awhile ago, the same B.T.L. that they turned over to the foreigners lock, stock and barrel, putting us in the situation we’re in. We listen to his broadside…even he now and the government are complaining about the results of privatisation PUP style. And he acknowledged in answer to my question that Belize Water Services Limited is demanding an increase in water rates, so we know that the B.T.L. scenario is going to be replicated by the Belize Water Services scenario.”
As a point of clarification for our viewers, when the monopoly license was granted to B.T.L. by the United Democratic Party, B.T.L. was still state owned. It was under the PUP government that Lord Ashcroft took control of the telecommunications company.
