MINISTER
OF PUBLIC WORKS, UTILITIES & BAHAMASAIR
BRADLEY
B. ROBERTS, M.P.
&
RATE RE-BALANCING
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.
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.
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.
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