Developing Telecoms | Bahamas Telecoms loses 80% of its fixed-line income in four years

Bahamas Telecoms loses 80% of its fixed-line income in four years

Friday, 02 October 2009 10:38

Competition is being blamed by the Bahamas Telecommunications Company (BTC) for the major losses the company has experienced in fixed-line for the year 2004-2008. Losses of US$45 million - a drop of 80% - have been registered. This figure in turn has only averted becoming worse because rental charges have been increased.

Consultation exercise reports to the public have exposed BTC’s ongoing problems: revenues down 64.5% in 2004-5 when BTC experienced competition because it was ruled by the Utilities Regulatory and Competition Authority (URCA), to have Significant Market Power (SMP), and then down by anything from 16% to 21% in the subsequent three years. In other words, decline was persistent and seemingly unstoppable.

The good news for BTC is that is no longer reliant on fixed-line: mobile provided over two thirds of revenue in 2007. Even conventional mobile technology is not guaranteed to produce the perfect solution, Skype being one of the “threatening” technologies.

Pricing for customers, consumer and business, also needs to be sorted out. BTC claims that it had its revenues from line rentals pegged to US$45 million, leading to a state of affairs where the price of access lines has gone up from US$9.50 to US$15 for residential customers and from US$21.25 to US$36 for business users, both rises being substantial but not enough to cover the debts incurred by BTC in bringing access to its customer base.

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Readers Comments (3)

|2009-11-26 09:02:05 Gaming courses - rep

Telecommunication is transmission of signals over a distance for the purpose of communication. In earlier times, this may have involved the use of smoke signals, drums, semaphore, flags or heliograph. In modern times, telecommunication typically involves the use of electronic devices such as the telephone, television, radio or computer.Gaming courses

|2009-11-27 11:01:24 Facilities Management - hi

Bahamas was giving great service to all
the people but the sudden downfall in
its telecom market and it had a loss around
80% which was too much.Facilities Management

|2009-11-28 09:29:04 Korean

"The average citizen naturally wants these people kept behind bars until their guilt can be determined.".. One is innocent until proven guilty.
Agree with everything else for the most part. Particularly the immigration issue. I think the the typical Bahamaian attitiude towards Haitians, is the most shameful thing in our country. We forget so quickly, our own history..and slavery..and inequality. Humanity and Rightousness knows no creed nor nationality. If your brother through carelessness cuts his hand, would you still not do all you can to prevent him bleeding, or do you say he should not have been so careless? Let's be more humane to our southern brothers, regardless of how they arrived here. Many of us were brought here in chains. They were forced here through despiration.

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Bahamas Telecoms loses 80% of its fixed-line income in four years

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