In this document, the Utilities Regulation and Competition Authority (“URCA”) issues its Final Determination on forward-looking, cost-oriented rates for wholesale fixed and mobile termination services in The Bahamas. Taking into account the time it will take to derive forward-looking cost-oriented rates, the elapsed time since the current rates were set, and the prevailing level of these rates, URCA has also assessed, and concluded on, the merits of setting interim termination rates, prior to moving to full cost orientation.

URCA issued the Preliminary Determination for this consultation on 12 September 2019. That document had the following core objectives:

• to set out the appropriate framework for setting forward-looking, cost-oriented termination rates in The Bahamas, taking into account both theoretical and practical considerations;
• to assess the merits of setting interim termination rates until the forward-looking, cost-oriented rates are available;
• to set forth the proposed interim termination rates, informed by a benchmarking exercise; and
• to invite comments from stakeholders on URCA’s proposals.

The first round of responses to the consultation were due on 14 October 2019. The second round of responses were due on 28 October 2019.

In addition to seeking general comments and/or views to URCA’s preliminary findings, URCA’s consultation paper sought respondents’ views on five questions:

Consultation Question 1: Do you agree with URCA’s preliminary view that forward-looking, incremental cost is the appropriate basis for setting termination charges? 

Consultation Question 2: Do you agree with URCA’s preliminary view that developing Bahamas-specific BU LRIC models should be used as a base for setting forward-looking LRIC-based termination rates in The Bahamas?

Consultation Question 3: Do you agree with URCA’s view that interim rates for intra-island fixed termination and mobile termination services should be set?

Consultation Question 4: Do you agree with URCA’s proposed approach for setting interim fixed and mobile termination rates (including the proposed use of a glide path)?

Consultation Question 5: Do you agree with the proposed levels of interim termination rates?

Three parties submitted initial responses to the consultation, namely:

• Be Aliv Limited (“Aliv”);
• Bahamas Telecommunications Company Limited (“BTC”); and
• Cable Bahamas Limited (“CBL”).

BTC and CBL made additional submissions as part of the second round. These additional submissions commented on aspects of the initial consultation responses submitted by the other parties. Aliv also made a second-round submission but stated within it that it generally adopted the same positions as those within CBL’s submission.

URCA thanks respondents for their written submissions and participation in the consultation process. The participation by all parties was useful and constructive.

URCA now sets out its reply to the comments it has received. In so doing, it expressly states that failure on its part to respond in this document to any issue raised by respondents does not necessarily signify agreement in whole or in part with the comment, that it has not considered the comment or that it considers the comment unimportant or without merit.