Cable & Wireless (Barbados) Ltd Standards of Service 2023–2025

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judgment Date: 13 December 2022
• Docket Number: Document No.: FTCUR/DEC/C&WSOS/2022-11

Cable & Wireless (Barbados) Limited Standards of Service 2023–2025

Document No.: FTCUR/DEC/C&WSOS/2022-11

FAIR TRADING COMMISSION

DECISION

TABLE OF CONTENTS

Section 1 Summary	4
Section 2 Introduction	7
2.1 Background	7
2.2 Legislative Framework	9
2.3 The Commission's Authority to Establish Standards of Service	9
2.4 Requirement to Consult	11
2.5 Requirement to Have Hearings	11
2.6 Non-Compliance with Standards of Service	11
Section 4 The Determination	15
4.1 Guaranteed Standards of Service for C&W	16
4.2 Guaranteed Standards of Service Definitions and Specific Exemptions	17
4.3 Overall Standards of Service	21
Section 5 General Exemptions	25
5.1 Other Exemptions and Conditions	26
Section 6 Reasons for Decision	28
6.1 C&W's view on its Monopoly Position	28
6.2 Commission's Response to C&W's View of its Monopoly Position	29
6.3 C&W's views on the amendments to GTS 4	29
6.4 Commission's Response to C&W's Views on GTS 4 Amendment	29
6.5 C&W's Views on Proposed Automatic Compensation	30
6.6 Commission's Response to C&W's Views on Proposed Automatic Compensation	30
6.7 C&W's Views on The Continued Regulation of Working Payphones	31
6.8 Commission's Views on The Continued Regulation of Working Payphones	31
6.9 C&W's Views on Exemptions	31
6.10 Commission's Response to C&W's View on Exemptions	32
6.11 C&W's Views on Confidentiality	32
6.12 Commission's Response to C&W's Views on Confidentiality	33
6.13 Summary of C&W's Responses to Consultation Questions	33
6.14 Guaranteed Standards of Service Compliance Targets	37
Section 7 Administration	42
7.1 Monitoring and Enforcement of Standards	42
7.2 Public Disclosure of Information	43
7.3 Public Education	43
7.4 Implementation and Review	43

Section 1 Summary

On April 23, 2021, the Fair Trading Commission (the “Commission”), per its statutory duty, commenced its review of the Standards of Service for Cable & Wireless (Barbados) Limited (“C&W”) for the period 2018–2020.

In accordance with the Utilities Regulation Order, 2014 (Statutory Instrument 2014 No.65), the Commission as regulator of domestic and international telecommunications has the responsibility to ensure that C&W meets certain minimum standards to ensure consumers have access to efficient and reliable fixed-line services. An assessment of market dominance in residential and business landline markets, reveals that C&W has sustained that dominance and therefore fixed-line regulation remains necessary to ensure the protection of their customers.

Pursuant to section 3 of the Utilities Regulation Act CAP. 282 of the Laws of Barbados (as amended) (the “URA”), the Commission has the following responsibilities to protect the utility's customers:

• • determine the standards of service applicable;

• • monitor the standards of service supplied to ensure compliance; and

• • carry out periodic reviews of the rates and principles for setting rates and standards of service.

The Commission initiated its review of the Standards of Service applicable to C&W for the 2018–2020 period by carrying out a public consultation. The purpose of this consultation was to receive comments from stakeholders1 on proposed amendments to the Commission's 2017–2020 Standards of Service Decision, which was extended.

Upon the Commission's analysis of the two submissions received in response to the Consultation Paper and its own research, the Commission formulated proposed Standards of Services for C&W and published the same on May 26, 20222. The Commission thereafter sought to commence a written hearing and invited interested parties to participate by

making written submissions with a view to determine the aforementioned proposed Standards. There were no submissions to the written hearing. Accordingly, the Commission hereby determines that the Standards of Service shall be revised as follows:

Guaranteed Standards of Service

• • A revised compliance target for Guaranteed Standard 1 (GTS 1) whereby the target for residential customers was reduced to five (5) working days

• • A new Guaranteed Standard called “Customer Complaint Resolution Time”, this shall replace “Response to Customer Complaints” as the new GTS 4 and will measure the time taken by C&W to resolve a subscriber's complaint from the time the complaint is made

• • A new GTS called “Account Cancellation Time after Customer Request” shall be introduced as GTS 9, this Standard will stipulate the time taken by C&W to completely terminate an account after a request by a customer

Overall Standards of Service

• • The target for Customer Service Response Time (OTS 6) is that at least 70% of calls must be answered within 40 seconds of being handed off by the interactive voice system (IVR) to the service representative queue.

• • A new Overall Standard (OTS 7)-relates to the Complaint Resolution Rate, this stipulates that on a monthly basis, a minimum of 75% of all complaints must be resolved within 7 days while a minimum of 95% of all complaints must be resolved within 14 days.

• • C&W will be required to provide the value of eligible and actual compensation broken down by Standard.

General Administration

C&W will be required to publish the Standards of Service and its fault reporting process clearly and prominently to the satisfaction of the Commission via C&W's website, social media platforms and two (2) forms of news media.

The Standards of Service shall come into effect on January 1, 2023 and will remain in effect until December 31, 2025. The Commission reserves the right to (i) review these standards before the end of this period, and (ii) extend its Decision for two additional years (up to December 31, 2027, if deemed necessary. Thereafter, the Decision will be subject to review by the Commission, at which time amendments may be made.

Section 2 Introduction

2.1 Background

This Decision sets out the Commission's determination of the Standards of Service for the domestic landline telephone services provided by C&W.

Section 2 of the Fair Trading Commission Act CAP 326B of the Laws of Barbados (as amended) (the “FTCA”) defines “Standards of Service” as the quality and extent of service supplied by service providers. Standards of service, in other words, are a measurable performance level that may be expected by customers of a service provider.

The Commission's Standards of Service regulation, which is a quality of service (QoS) framework:

• • ensures that a minimum QoS is maintained;

• • provides incentives for improvements in the service provider's QoS;

• • creates conditions for customer satisfaction;

• • monitors service quality; and

• • protects the interests of consumers.

Given C&W's sustained dominance in the landline market, and notwithstanding increased competition in other telecommunications markets, these mandates remain a necessary feature of the Commission's regulatory framework. Despite C&W's claim3 that alternative calling platforms are competitive alternatives to traditional landline services, an assessment of the market shows otherwise. Despite the increased demand for mobile voice services and voice over internet protocol (VoIP) services such as WhatsApp, the penetration of landline services remain relatively high. Currently, the landline penetration rate is approximately 46%, which is higher than the penetration rate that existed in 2000 (44%), prior to market liberalisation.4 This indicates that despite the alternatives available for making voice calls, the high landline penetration rate, regulation of C&W's landline service remains relevant.

C&W has expressed concern that regulation should apply to all service providers. The Commission acknowledges C&W's concern, however, until evidence emerges that C&W no longer has a dominant position in the market and the requisite legislative amendment, the Commission remains dutybound to regulate its landline service. In addition, the Commission does not have the legislative authority to regulate other services and service providers. In the absence of a sufficiently competitive market, regulation incentivizes C&W to maintain high service quality, and it also acts as a proxy for a competitive market. Moreover, standards of service regulations are also important in cases where the service provider is subject to price cap regulation, as is the case with C&W. Price Cap regulation is the method used by the Commission to ensure the level of prices of services in a market that is not yet competitive, remains at or below a price...