Fixed voice telephony services are provided by both BTC and CBL.[1] However, BTC is the only provider within this market that has been classified by URCA as having significant market power (SMP). BTC provides local, domestic long distance (inter island) and international calls using its copper line/ fibre optic network, the Bahamas Domestic Submarine Network (BDSNi) cable system and a Satellite Earth Station. These services and related infrastructure are provided nationwide. CBL (including its affiliates SRG and Caribbean Crossings Ltd.) provides local, domestic long distance (inter island) and international calls to residents of New Providence, Grand Bahama, Eleuthera and Abaco by way of its fibre optic/coaxial cable network and a fibre optic submarine cable system.
Approximately 70% of fixed voice telephony clients are residential customers. The remaining 30% are business customers (Figure 1). In 2013, the number of fixed–line subscribers was just over 128,000 representing a penetration rate of 35.65% (Figure 2).[2]
|
|
|
| click images to enlarge... |
Global penetration for fixed voice services in 2013 stood at 16.2% down from 16.7% in the previous year.[3] Figure 3 highlights trends (2010 to 2013) in fixed telephone penetration rates in developing and developed economies relative to The Bahamas.
Service providers’ websites indicate that residential fixed line services are offered to the public at a starting price of $14.99 (CBL) and $16.25 (BTC).[4] Published per minute charging for outbound international calls to the US, Canada and the Caribbean range from $0.47 to $0.66 on the BTC network and $0.17 to $0.29 on CBL’s network.[5]
Direct international dialling rates may be offered at lower rates if subscribers enrol in bundles or packages that are geared towards long distance dialling. International calling is also subject to competition from an active calling card market of which BTC and CBL are also providers.
In keeping with its remit to enhance competition and increase consumer choice, URCA implemented fixed number portability in 2013.[6] This initiative allows fixed telephone service customers in New Providence, Grand Bahama, Abaco and Eleuthera to switch from one service provider to the other without having to change their fixed telephone number. Mobile number portability is also planned to coincide with the introduction of competition in the mobile market.