MINISTER OF PUBLIC WORKS, UTILITIES & BAHAMASAIR

BRADLEY B. ROBERTS, M.P.

 

REMARKS TO THE CHAMBER OF COMMERCE

FREEPORT, GRAND BAHAMA

 

TOPIC: CELLULAR NETWORK

& RATE RE-BALANCING

APRIL 30, 2003

 

PRESIDENT MRS. GWENDOLYN ADAMS-NEWBOLD

OFFICERS, MEMBERS OF THE GRAND BAHAMA CHAMBER OF COMMERCE

DISTINGUISHED LADIES AND GENTLEMEN

 

I WISH TO THANK YOU KINDLY FOR YOUR INVITATION TO ADDRSS THIS LUNCHEON SESSION OF YOUR ONE DAY SEMINAR.

 

ONE YEAR AGO YESTERDAY, APRIL 29, 2002, I WAS HERE IN FREEPORT TO PARTICIPATE IN THE LARGEST POLITICAL RALLY EVER HELD IN GRAND BAHAMA. THE MAY 2ND GRAND BAHAMA ELECTION RESULTS CULMINATED IN BREAKING THE POLITICAL DOMINANCE OF FNM’S IN GRAND BAHAMA SINCE 1977. I CHOSE TO COME TO GRAND BAHAMA TO MAKE SEVERAL IMPORTANT ANNOUNCEMENTS.

 

FIRSTLY, TO OFFER TRIBUTE TO THE GOOD PEOPLE OF GRAND BAHAMA, WHO SHOWED THE COURAGE AND WISDOM TO CUT THE THIRTY-TWO YEAR POLITICAL UMBILICAL CORD. AND SECONDLY TO LAUNCH THE PROGRESSIVE LIBERAL PARTY’S PROGRAM OF THE DELIVERANCE ON PROMISES MADE IN THE PLP’S ‘OUR PLAN’ IN THE VITAL AND CRITICAL AREA OF TELECOMMUNICATIONS, NOT ONLY IN THE PORT AREA, BUT THE ENTIRE ISLAND OF GRAND BAHAMA; FROM SWEETING’S CAY IN THE EAST, TO WEST END IN THE WEST.

 

i heard a fact that was once told at the start of a speech and so because of its appropriateness, i thought i would relay it to you.

 

Back in 1928, the co-founders of Motorola, Paul and Joseph Galvin, were struggling to expand their small engineering company.  As they racked their brains for an idea for the future, Paul drew inspiration from three of America’s most famous sons; al capone, thomas edison and henry ford.

 

 

 

 

By combining the concept of radio, radio frequencies, motor cars and the need for police radios to combat crime, Paul Galvin was able to change the face of communications forever.

 

By 1930, they had produced the first practical and affordable car radio and coined the name Motorola – a brand that links the idea of motion and radio.

 

Today, just as in the twenties, the evolution of new technology is having a major impact on our lives.  There is tremendous change taking place worldwide in the way that we communicate, conduct business, learn, and entertain ourselves.

 

Mobile Communications, namely cellular telepHone service is playing a major role in this evolution and is being seen as one of the drivING FORCES of the information age.  It is changing the way we do business and the way we communicate. It is able to cross all boundaries and barriers. It links buyers and sellers, family and friends like never before; and it’s adoption and usage is growing at a phenomenal speed.

 

By the end of the year 2002, it is estimated that there were 1.3 billion cellular users globally. 34 Million were analogue users, 120 Million were TDMA users, i59 million were CDMA users, and by Feburary 2003 821.3 million or 68% of the cellular subscribers globally were GSM users. It is projected that GSM users will exceed the one billion mark in 2003.

 

SMS (short messaging sysytem) sent in 2002 were 366 billion. today an average of 24 billion messages are being sent monthly. It is projected that revenues from Sms will reach 83 billion by the year 2004.

 

At BTC, we are cognizant of these changes and opportunities, and hence we are constantly modernizing our network to deliver the quality technology that our customers are demanding.

 

Cellular services were introduced to The Bahamas in 1988.  These services were launched in New Providence, Grand Bahama, and Bimini first.

 

In 1998, BaTelCo began migrating its Network from an Analogue to a Digital TDMA (Time Division Multi-Plex Access) Network.  This transition began with the Islands of New Providence and Grand Bahama.

 

Since 1998, BaTelCo has installed sixty-two (62) Cell-Sites covering all the major population centers in every major Island in The Bahamas.

 

In 1999, BaTelCo lowered its rates and tariffs by more than fifty percent (50%) from $45 a month to $20.00 a month and its per minute charge from $0.45 to $0.20 a minute peak and $0.10 a minute off peak.  Since the lowering of the rates in September 1999, BTC’s Cellular Subscriber base exploded from 10,000 in 1999 to 60,000 by the end of 2001.

 

The record will reflect that BaTelCo’s cellular Subscriber base has grown from 3,478 subscribers to 125,000 at the end of 2002.

 

BaTelCo cell sites have grown from 15 in 1988 to 62 in 2002 covering every major population center in The Bahamas.

 

THE Number of calls placed on the cellular network has grown from 5,021,360 CALLS in 1997 to 86,123,306 CALLS in 2001.

Talk time on cellular has grown from 8,913,122 MINUTES in 1997 t0 187,281,946 MINUTES in 2001.

 

Having made $30 million in capital expenditure in 1999 and an additional $34 million in 2001, BTC has seen its cellular revenues grow at a CAGR (Compounded Annual Growth Rate) of 78%. Cellular revenues have grown from $16.5 million in 1999 to $67 million in 2002 accounting for 35.2% of BTC’s revenues. Cellular revenues are projected to reach $92 million in 2003 and $119 million in 2004.

 

BaTelCo launched its Prepaid Cellular Services on December 17, 2001; by the end of 2002, BaTelCo’s Cellular Customer base had exploded to 125,000 for a Network that was designed for 120,000 customers.

 

HENCE, As not to deteriorate the Network any further, BTC opted to place a moratorium on Cellular Subscription IN JANAURY OF THIS YEAR 2003.

 

This moratorium has created hardship for many residents, business, and visitors whose businesses, security, entertainment, and pleasure depends on having a Mobile Communications Network.

gsm technology

It is from this backdrop, as the GOVERNMENT Minister with the responsibility for communication, that I take great pleasure in announcing to the Nation for the first time, HERE in the second city of Freeport, that BTC haS been given the green light to start the procurement and installment of a New GSM (Global System for Mobile Communications) overlay Cellular Network.

 

The installation of this new network will allow BTC in the first instance to lift the present moratorium placed on cellular subscription in January 2003.

 

This NEW Network, in its first phase, will cover the Islands of New Providence and Grand Bahama.

 

This New Cellular Technology, GSM (Global System for Mobile Communication) along with GPRS (General Packet Radio Services) will be rich with added value features.

 

All major cellular phone manufacturers provide a VARIETY of handsetS for customers to choose from. Customers on this New Network will be able to choose phones with color screens, built in PDAs, joystick maneuverability, size, camera accessories, and personalization with your own picture and ring tones.

 

In addition to CLASS services, that is caller ID, call waiting, three way calling, voice mail and SMS, Customers will have access to the Internet, and Mobile Data, right on their Cellular phones.

 

The system will allow BTC to negotiate Global Roaming Agreements for the international traveling Public, which is projected to generate significant new revenues for btc.

 

And in keeping with my government’s campaign promises in “Our Plan,” BTC will change the way services are now offered and priced.  Various packages with free minutes will be offered.  Services will be bundled, and in so doing the cost of cellular phone services will be lowered.

 

The new network is scaleable with an initial capacity of fifty thousand (50K) subscribers.

 

The new GSM network has “number portability” so that our customers migrating from the old TDMA network to the new GSM network will not have to have their numbers changed.

new economic opportunities

The launch of Quick-Cell in December 2001 has created a mini economy with vendors and resellers selling more than forty million dollars ($40 million) in cards in the first year of operation. Quick-Cell for many businesses has been their number one item.

 

HENCE, The introduction of the New GSM Cellular Network would create even more economic opportunities for the creative, innovative, and entrepreneurial Bahamian.

 

new long distance rates

I am also extremely pleased to announce, that in keeping with my government’s campaign promise to reduce the cost of Telecom services and to bring those rates more in line with cost, BTC has been given the go ahead by my government to commence its rate re-balancing program.

 

TO THIS END, WHEN THE GSM NETWORK IS LAUNCHED, IN THE NEXT THREE MONTHS, BTC WILL BEGIN THE LOWERING OF ITS LONG DISTANCE RATES FOR USERS OF THE BAHAMAS PREPAID CARD.

 

These new rates will reduce the per minute charge for calls to the UniteD States from $0.99 to $0.24.

Charges for calls to the United Kingdom will be reduced from $2.25 per minute to $0.24 per minute.

 

Charges for calls to the Canada will be reduced from $1.25 per minute to $0.24 per minute.

 

Calls placed to Jamaica will be reduced from $2.25 per minute to $0.54 per minute.

 

Call charges to Haiti will be reduced from $2.50 per minute to $0.59 per minute.

 

Calls to SwiTZerland will be reduced from $2.75 per minute to $0.25 per minute.

 

Calls to the rest of the world will be reduced from $2.50 per minute to $0.44 per minute.

 

AND DOMeSTIC LONG DISTANCE (DLD) TARIF WILL BE REDUCED FROM 0.40 TO 0.20 CENTS PER MINUTE.

 

HOWEVER, In order to re-balance its rates, BTC will increase the rental for residential telephone services from $10.75 per month to $15.00 per month. BTC will also increase its rental for business telephone lines from $21.25 to $30.00 per month.

 

you may find it interesting to know that i have been advised that it has been more than thirty years since fixed telephone rates were last increased.

 

 MADAME PRESIDENT, Ladies and gentlemen, CONTRArY TO OUR DETRACTORS, my government is AGGRESSIVELY DELIVERING ON its promise to the Bahamian people as stated in “Our Plan” to SIGNIFICANTLY lower the cost of telecommunications services, whilst at the same time keeping the Bahamas on the cutting edge of technology.

 

 

THANK YOU FOR HAVING INVITED ME TO ADDRESS YOU TODAY AND I TRUST I HAVE BOUGHT POSITIVE NEWS THAT WILL IMPACT THE QUALITY OF LIFE FOR ALL WHO RESIDE WITHIN THE SMALL NATION WE CALL THE COMMONWEALTH OF THE BAHAMAS.

 

Q & A