VoIP is hurting BTC
June 17th, 2006 - Posted in VoIPA new report is again indicating that The Bahamas Telecommunications Company (BTC) is being devalued due to illegal competition from long distance companies offering Voice over Internet Protocol (VoIP).
The report on ‘Promoting Investment in Information and Communication Technologies in the Caribbean’ (PIICTC), was compiled last month.
“It may be wise for the government to take stock of the current situation, understand the realities of this technology and its impact on prices, recognise the futility of trying to stop its progress or to police its use and instead encourage BTC to take into account and embrace VoIP technology to reduce the overall cost of the delivery of telecommunications services in The Bahamas,” the report said.
Minister of Works and Utilities, Bradley Roberts said he understands this point but noted that the use of VoIP under the present laws is prohibited.
The provision of callback, or bypass services and the use of VoIP for the provision of telephone service by any operator with the exception of BTC are illegal in The Bahamas.
And, according to the Telecommunications Act, anyone caught using VoIP or providing the service without approval from the Public Utilities Commission (PUC) could be hit with a hefty $300,000 fine.
Mr Roberts revealed that in 2000, BTC’s revenues from international long distance calls were approximately $90 million, while in 2004 BTC’s revenues from such calls fell to $50 million - a reduction of 54 per cent.
“It has been the intent of this administration and that of the previous administration to preserve the value of BTC through the managed liberalisation of The Bahamas telecommunications sector so that the privatisation of BTC will return the maximum revenues to the government,” said Mr Roberts.
Some telecommunications analysts in the (PIICTC) report estimated that up to 70 percent of outgoing international traffic bypasses BTC’s network, with 30 to 40 percent of business subscribers using VoIP alternatives such as Vonnage and Skype.
“To this end, the Public Utilities Commission was set up to regulate the telecom sector to ensure that the government policies for liberalisation and privatisation are carried out unimpeded, and with the interest of the government of The Bahamas,” said Mr Roberts.
He sounded a warning to those business houses using VoIP and those providers selling VoIP, saying besides the negative impact on BTC’s revenues and its value, VoIP as it is presently being provided, is creating a number of problems for BTC and its customers. He said:
1. Fax services do not always work on VoIP and BTC get the blame.
2. Enhanced 911 does not work on VoIP.
3. Many BTC customers travelling abroad are complaining that the numbers dialled to The Bahamas are being directed to a recording stating the number is temporarily out of service.
4. Many of BTC customers are complaining that numbers are showing up on their caller ID as 10 digits, e.g. (111-111-1111), (555-555-5555) or (999-999-9999). These are ghost numbers that are being masked by some illegal VIOP operators and could eventually create a billing dispute.
5. VoIP results in many man hours of work by BTC to trouble shoot its Internet services only to find out the problem is not a BTC problem.
The PUC is also aware that there are “independent” distributors selling the Vonnage system, making a commission by selling the service to family and friends.
Said Mr Roberts: “These telecom services use the established telephone and Internet backbone of BTC without contributing to the capital cost or to the maintenance cost of these backbones.”
He added: “And because these services are paid by credit cards they do not contribute to the economy of The Bahamas by leaving funds in country or to job creation.”
Source: www.thenassauguardian.net