Public Consultation on the Assessment of Significant Market Power in Mobile Call and Short Messaging Termination Services on NewCo2015 Limited’s Cellular Mobile Network in The Bahamas under Section 39(1) of the Communications Act, 2009

URCA has published its Final Determination and Statement of Results on the “Assessment of Significant Market Power in Mobile Call and Short Messaging Termination Services on

NewCo2015 Limited’s Cellular Mobile Network in The Bahamas under Section 39(1) of the Communications Act, 2009” (ECS 33/2016).

In this document, URCA made determinations regarding the definition of markets, that NewCo has significant market power (SMP) in those markets, and the extent to which ex-ante

regulation is appropriate in those markets. The published document also provides URCA’s feedback on responses received to the consultation, which comprised two rounds of comments

from interested persons. At the close of the initial response period (i.e., 15 August 2016) URCA received written comments from Bahamas Telecommunications Company Ltd. (BTC) and

NewCo2015 Limited (NewCo). In the second consultation round responses were received from BTC and NewCo.

On 30 June 2016, URCA granted to NewCo2015 Limited (“NewCo”) an Individual Operating Licence (IOL) authorising the operation of an electronic communications network and provision

of carriage services, and an Individual Spectrum Licence (ISL) authorising the use of specific blocks of radio frequency spectrum, suitable for the operation of a cellular mobile network and

provision of cellular mobile services.

URCA, having conducted a review of mobile termination services (voice and messaging service) on NewCo’s cellular mobile network in The Bahamas in accordance with the Comms Act and the

SMP Methodology (or SMP Guidelines), made the following determination:

• NewCo holds SMP in the market for Mobile Call Termination on NewCo’s Cellular Mobile Network.
• NewCo holds SMP in the market for Mobile Message Termination on NewCo’s Cellular Mobile Network.
• NewCo’s mobile termination rates will be set based on BTC’s interim mobile termination rates contained in BTC’s RAIO, plus a 25% mark-up. That is, NewCo shall not charge a termination rate any greater than:
  • 3.10 cents per minute for any incoming domestic calls to NewCo’s mobile network;
  • 5.76 cents per minute for any incoming international calls to NewCo’s mobile network; and
  • 1.75 cents per SMS termination on NewCo’s mobile network.

In the Final Determination, URCA reserved the right to revisit NewCo’s interim mobile termination rates set out above, if URCA, in its sole discretion considers it appropriate to do so,

or in response to a request by BTC.