On June 7, The BVI Beacon turned 40. To celebrate, it is re-publishing some of the biggest stories from its archives over the past four decades. The article below originally ran June 8, 2006.

After a marathon session Thursday, the Legislative Council passed a Bill that will liberalise the territory’s telecommunications industry.

Minister of Communications and Works Elmore Stoutt moved the motion for the Bill’s second and third readings, and the Bill was approved early Friday morning following a debate among legislators. Mr. Stoutt said that, now that the Bill is passed, government will move quickly so that the public can soon enjoy the benefits of liberalisation.

The next step will be appointing commissioners and a chief executive officer for the Telecommunications Regulatory Commission. The TRC will be responsible for issuing licenses, providing oversight for the competitive market, ensuring compliance with the new rules, and protecting the interests of users.

What it means

Mr. Stoutt explained that under liberalisation, existing monopoly franchises for fixed, mobile and cable networks will be abolished and replaced by unitary licences.

“This will allow the existing network operators to move into each other’s markets and provide whatever services they wish, throughout the BVI, using the technology of their choice,” he said. “When the telecommunications sector is liberalised, BVI residents stand to reap significant benefits from the action,” the minister continued. “Eventually there should be a reduction in call charges and improved services, more employment opportunities, higher levels of investment, enhanced international competitiveness, and improvements in [the] gross domestic product.”

Who they are

Three service providers currently operate in the BVI under monopoly licenses: Cable &

Wireless for landline telephone service; CCT Global Communications for wireless telephone service; and BVI Cable for cable television service.

Negotiated settlement?

Opposition members were upset that the Bill contained a clause that would allow the minister of Communications and Works to negotiate a cash settlement for any existing telecom contracts, specifically the one with CCT Boatphone.

That company is currently involved in litigation with the government.

“Compensation for any contract should be part of the contract,” said Julian Fraser (R-D3). “It shouldn’t be part of the Bill. This is garbage.”

Andrew Fahie (R-D1) and recently replaced Minister of Communications and Works Alvin Christopher also attacked that part of the Bill.

“I looked forward to a day when I would see the Telecommunications Bill passed, but now I have great anxiety,” Mr. Christopher said. “I see a section that troubles me. Compensation is something that has always been worked out in court. This sets a dangerous precedent.”

Potential savings

But Attorney General Cherno Jallow said it might save government a great deal of money.

“Government should ensure that it limits costs as much as possible,” Mr. Jallow said. “Going to court or arbitration could cost millions. We are trying to put the minister in [a] position to limit the cost to government.”

Minister of Finance Ronnie Skelton also defended that part of the Bill.

“We want a Telecommunications Bill that is fair to everyone,” he said. “We cannot take people’s property and not compensate them.”