Cable & Wireless (Barbados) Ltd Draft Reference Interconnection Offer (RIO) 2017

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judgment Date: 23 April 2019
• Docket Number: Document No.: FTCUR/DECRIO/CW-2019-02

Cable & Wireless (Barbados) Limited Draft Reference Interconnection Offer (RIO) 2017

Document No.: FTCUR/DECRIO/CW-2019-02

FAIR TRADING COMMISSION

DECISION

TABLE OF CONTENTS

SECTION 1 SUMMARY	3
SECTION 2 INTRODUCTION	5
SECTION 3 LEGISLATIVE FRAMEWORK	7
SECTION 4 THE COMMISSION'S ANALYSIS	11
SECTION 5 DETERMINATION	17

SECTION 1 SUMMARY

1 On September 25, 2008, the Fair Trading Commission (the Commission) requested that Cable & Wireless (Barbados) Limited (C&W) file a Reference Interconnection Offer (RIO) that would set out the terms and conditions for the interconnection of mobile, domestic fixed wireless and international service providers with its public telecommunications network. This RIO, the RIO 2010, was approved on February 22, 2010. On April 9, 2015, citing a new set of developments in the telecommunications sector, the Commission requested that C&W submit a revised RIO for review. The Commission considered that the RIO 2010 no longer accurately reflected network and industry conditions due to considerable technological progress and changes to interconnection charges 1 brought about by the Commission's Decision on Long Run Incremental Cost (LRIC) Interconnection Rates 2015. The revised draft RIO was submitted on July 20, 2015 and reflected proposed changes to rates and updates in line with technological developments. On September 8, 2017, the Commission asked C&W to assess the draft RIO to determine if any further adjustments were required, since a significant period had passed. A revised draft was submitted to the Commission on October 12, 2017 (Draft RIO 2017). Consequently, the Commission initiated the review and issued a public consultation on the Draft RIO 2017 on January 2, 2019.

2 The consultation sought to solicit comments on and ultimately assist in determining the following:

• a. The inclusion of a Public Land Mobile Network (PLMN) Transit Charge as found in the Commission's Decision on the Interconnection Dispute between C&W and Digicel (Barbados) Limited (Digicel) of June 2013;

• b. Whether the Draft RIO 2017 addresses the various technological advances in the telecommunications/information and communications technology (ICT) industry; and

• c. Any other terms and conditions that may be deemed necessary.

3 There was only one response to the consultation. It came from C&W itself, essentially agreeing with the views of the Commission expressed in the Consultation Paper (FTC/URD/CONRIO-2019-01).

4 The Commission is satisfied that the Draft RIO 2017 accurately reflects the present state of the sector by appropriately including reductions in interconnection charges and advancements in network technology.

5 The Commission therefore approves the Draft RIO 2017 effective from April 17, 2019 and determines the following:

• a. The Public Land Mobile Network (PLMN) Transit Charge, as found in the Commission's Decision on the Interconnection Dispute between C&W and Digicel (Barbados) Limited (Digicel) of June 2013, is not required;

• b. The general structure of the Draft RIO 2017, inclusive of its standard terms and conditions, remains adequate;

• c. The rates and rate structure for interconnection charges are now congruent with those approved in the Commission's Decision on Long Run Incremental Cost (LRIC) Interconnection Rates 2015; and

• d. The Draft RIO 2017 adequately addresses the various technological advances in the telecommunications/information and communications technology (ICT) industry, and shall now be adopted as the RIO 2019.

SECTION 2 INTRODUCTION

6 A RIO sets out the terms and conditions under which a telecommunications service provider or carrier will permit another service provider or carrier to interconnect with its network. Interconnection is a vital process for two (2) main reasons:

• 1. It facilitates the delivery of telecommunication services and traffic within and across borders; and

• 2. It facilitates the growth of competition in the telecommunications/ICT sector. If prospective providers recognise that a regulatory framework is characterised by fair and non-discriminatory access to the incumbent provider's network, there is likely to be greater market entry. This benefits the consumer as it can have the effect of driving prices down and forcing service providers to improve products and service delivery. Additionally, it has the potential to encourage a greater influx of foreign direct investment.

7 Since the approval of the RIO 2010, the telecommunications/ICT industry in Barbados has seen significant developments which, in the Commission's view, warranted a review of the same. The granting of a full domestic license to Digicel in 2012 precipitated a variation in the interconnection agreement between C&W and Digicel, originally approved by the Commission in 2004. When the parties' negotiations of the variation agreement broke down, C&W referred the dispute to the Commission for resolution, in accordance with the Commission's Decision on Interconnection Dispute Resolution Procedures, dated June 30, 2003. A major aspect of this interconnection dispute involved the inclusion of a Public Land Mobile Network (PLMN) Transit Charge, payable to Digicel, since calls must transit its mobile network in order to connect to its Public Switched Telephone Network (PSTN).

8 The need to review the RIO 2010 is also reinforced by the Commission's Decision on Long Run Incremental Cost (LRIC) Interconnection Rates 2015, which determined that there would be reductions in the interconnection rates for Fixed Transit, Fixed Termination, Mobile Transit and Mobile Termination interconnection services.

9 Lastly, there has been rapid development of technology in the global telecommunications/ICT sphere. The sector in Barbados is no different, with traditional telecommunications services having to compete with newer disruptive technologies, such as wireless broadband and Voice over Internet Protocol (VoIP) 2. Additionally and perhaps more importantly, the network technology used for fixed telephony has evolved a great deal, with traditional copper wires being replaced by fibre optic technology, bringing far greater speed and data transmission capacity. The Commission considers it reasonable that these technological advances must be reflected in the RIO in order to accurately represent the present state of the networks and the changes in the processes and standards required for interconnection.

10 In view of the aforementioned circumstances, the Commission presents herein its analysis and determination in respect of the Draft RIO 2017, as submitted by C&W. It remains vital to ensure that the RIO continues to be equitable in the treatment of all licensed telecommunications providers in accordance with the Telecommunications Act, CAP.282B (TA).

SECTION 3 LEGISLATIVE FRAMEWORK

11 The telecommunications sector is regulated by the Commission, as well as the Minister responsible for Telecommunications through the Telecommunications Unit in the Ministry of Innovation, Science and Smart Technology. The industry is governed primarily by the TA and sections of the Utilities Regulation Act, CAP. 282 (URA) of the Laws of Barbados. The sections of the TA which relate to interconnection are cited below.

12 Section 25(1) of the TA states:

“A carrier shall provide, on request from any other carrier, interconnection services to its public telecommunications network for the purpose of supplying telecommunications services in accordance with the provisions of subsection (2).”

13 Section 25(2) of the TA states:

“Interconnection services referred to in subsection (1) shall

• (a) be offered at points, in addition to network termination points offered to the end-users, subject to the payment of charges that reflect the cost of construction of any additional facilities necessary for interconnection;

• (b) be on terms that are transparent and non-discriminatory;

• (c) in respect of the interconnection charges and service quality of the interconnection services, be no less favourable than similar services provided by the interconnection provider for

  • (i) its own purposes;

  • (ii) any non-affiliate service supplier of the carrier;

  • (iii) a subsidiary of the carrier; or

  • (iv) for similar facilities so provided;

• (d) be made available in a timely fashion;

• (e) be offered at charges that are cost-oriented;

• (f) be offered in such a way as to allow the requesting carrier to select the services required and not require the carrier to stand the cost of network components, facilities or services that are not required or have not been requested by that carrier; or

• (g) allow for end-users of public telecommunications services to exchange telecommunications with other users of similar services regardless of the carrier to which the end-user is connected.”

14 Section 25(3) of the TA states:

“A carrier shall provide interconnection to its network

• (a) on such reasonable terms and conditions as the interconnecting parties agree through commercial negotiations;

• (b) consistent with an approved Reference Interconnection Offer; or

• (c) where there is no agreement between the parties, on such terms and conditions as the Commission determines in accordance with section 29 applying the principles established under this Act, and under any approved Reference Interconnection...