Bradley Roberts
04-27-04, - 05:38 PM
RESPONSE TO THE FNM’S PRESS RELEASE,
“EXACTLY WHAT’S GOING ON AT BTC?”
Upon my return to the Bahamas on April 22nd, Thursday past, I was informed of remarks made by the Free National Movement concerning the status of BTC’s Cyberworld Phone Shop in a Press Release, published by the Nassau Guardian in it’s April 20th, 2004 edition. I was informed that the statement, in effect, questioned whether the opening of BTC’s Cyberworld phone shop is in direct competition to the little man and is it an attempt by BTC to put the little man out of business?
Firstly, I wish to state that it has always been my government’s heartfelt mandate to empower all persons on an individual or corporate basis. And for anyone to suggest otherwise, or question that mandate, leaves me with no other conclusion than that those who question must not yet realize that the government of today is the Progressive Liberal Party and not the Free National Movement.
However, it is my duty, as the minister responsible for the general functioning of BTC, to inform again the unknowledgeable, the sincere and even the deliberate distorter of the facts, about the purpose, plans and functioning of BTC’s Cyberworld Phone Shop.
Cellular services came to the Bahamas in 1988. BaTelCo at that time was the provider of all cellular telephones and sold those telephones throughout the country through its CTOs (Central Telegraph Offices).
BaTelCo as the master distributor for brands such as Motorola, NEC, Uniden and Nokia also completed programming of its phones. The customer always had a choice to buy his/her phone from any vendor as long as it was compatible to BaTelCo’s network.
In the 90’s, cellular customers had a choice of having their phones programmed by any person who was equipped to program the phone. The fees for programming varied from $25 to as high as $50.
With the advent of the migration from Analogue to TDMA in 1998, BTC saw an up turn in its subscriber base from 3,100 subscribers in 1994 to 10,000 by August 1999 and with the lowering of cellular rates in September 1999 there was an exponential growth of some 83% CAGR (Compounded Annual Growth Rate).
By May 2000 there were 32,000 cellular subscribers most of whom brought their phones either locally from Vendors, BTC or in the USA and had them programmed by vendors in the Bahamas.
In December 2001, BaTelCo launched its cellular prepaid services branded QuickCell which BaTelCo partnered with its vendors and distributors to sell the service.
The QuickCel Phones were sold to the distributors for $175.00 and they were allowed to sell the phones for $199.00. BaTelCo also sold QuickCel Prepaid cards to vendors and distributors on a commissioned rate starting at 10% to as high as 35%. There are a number of entrepreneurs who brought bulk cards at the rate of $100, 000.00 a fortnight and received a commission of $35,000.00 per transaction.
It should be noted that more than 62,000 cellular customers were added to the cellular network in 2002 before a moratorium on subscription was placed in January 2003. Even with the moratorium in place, vendors were selling phone cards, programming phones and selling phones to those customers who needed to either replace their phones, because they were faulty, or simply wanted to upgrade to the latest model instrument.
In launching GSM, BTC again went back to its partners as a joint venture and offered the GSM Prepaid Cards, SIM cards and phones.
For those who sincerely wish to have the facts the following should be noted.
When BaTelCo launched its QuickCel services in December 2001 more that 10,000 Customers were added in two weeks. BaTelCo started the launch with a mere 2,500 Cellular phones. Its partners sold more than 90 % of the 10,000 Cellular phones.
On 15th December 2003, BTC began Beta Testing of its GSM network and by the end of December 2003 just like December 2001, some 11,000 plus GSM customers were using the network with more than 95% of those phones costing from $150.00 to $900.00 and being sold by BTC’s partners.
BTC provided to all its Beta Testers (18,000 plus) in New Providence and Grand Bahama $100 worth of free airtime and a free SIM Card with a value of $50 for a total of more than $2.7 Million.
This partnership with its customers allowed BTC to have customers critique the network and expresses their satisfaction or dissatisfaction prior to the commercial launch of the system.
BTC accommodated its partners at trade shows at the Mall at Marathon for more than three weeks during GSM Beta testing. It further accommodated them at the Whydham Hotel for the New Providence launch, as well as at the Our Lucaya Resort for the Grand Bahama launch.
It should be noted that similar arrangements were made in 2001 during the launch of Quickcell by BaTelCo.
In each instant, BTC/BaTelCo provided Radio coverage on all the local stations each day with promotional interviews for its partners. Television coverage was also provided on ZNS and Native Stew at no cost to its partners at The Mall at Marathon and at the two launches.
Today, BTC partners have a choice of retailing the following services:
- Quickcell Prepaid Cellular Phones (BTC sells the phones to the vendors at $175.00, they in turn retail it at $199.00)
- Quickcel Prepaid Cards (Commission 10% to 25%)
- GSM Prepaid Cellular Phones (BTC sells the phones to the vendor at $215.00 they in turn retail the phone at $240.00)
- GSM Prepaid Cards (Commission 10% to 25%)
SIM Cards
- Bahamas Prepaid Direct Card (Commission 10% to 25%)
- DSL services
It should also be noted that BTC’s offices are opened with definitive times with the exception of The Mall at Marathon. All other BTC facilities throughout the Country close at 5 pm weekdays and are closed on weekends and public holidays.
Customers find the convenience of the 300 plus entrepreneurs authorized by BTC to distribute its retail cellular services much more convenient than BTC facilities where the lines are long.
These entrepreneurs are strategically placed at gas stations, food stores, convenience stores, bars, restaurants and along the roadside as drive ups.
Many of these entrepreneurs have done well by prepaid cellular services considering more than $90 Million of cards have been sold. And for some, it is their number one product.
The Bahamian consumer is a well-traveled and enlightened customer. Those who have sought cellular services aboard can testify that Cellular Service Providers throughout the United States, Canada, Europe, Asia and the Caribbean all have telephone shops from which they promote and sell their product.
For the comfort that goes with reliability, each consumer would also note that the instruments are all branded with the Company’s logo indelibly placed.
I was privileged just two months ago, to visit Trinidad and was given a tour of several of TSTT’s (Telecommunication Services of Trinidad & Tobago) seventeen (17) phone shops and its super phone shop.
While in France I noted some of the 721 shops owned by France Telecom. Anyone who has traveled just to Miami would see the many AT&T, Cingular, T-mobile, Verizon, Sprint, Nextel and others with storefronts.
The Telecommunication Sector Policy of The Bahamas speaks to liberalization of the sector. BTC has to transform itself now if it is to face competition and operate as a private sector company with best practices so as to enhance its value and be privatized.
The days of operating from Central Telegraph Offices (CTOs) are gone with in the 21st century. In fact, many of our children and grandchildren don’t know what Telegraph is.
Global Systems for Mobile Communications (GSM)
As Minister responsible, I thought to also address some of the foolishness perpetrated by the seatless-wanderer of the FNM, Senator Tommy Turnquest in this same press release.
In regards to his remarks about GSM; GSM is the acronym for Global Systems for Mobile communications. It is a French acronym translated from Groupe Speciale Mobile.
GSM is the second generation of digital cellular technologies and is commonly referred to as 2G. It is the most dominant cellular technology in use today as it is established in 205 countries. Because of the widespread use of this technology, roaming for customers from their home network to another networks are now accepted as the norm.
The FNM has complained about not being able to use the GSM phones in all the Bahama Islands today.
While the FNM was in power, BaTelCo introduced TDMA services in New Providence and Grand Bahama in 1998. BTC installed the last two sites in Harbour Island and Morse Island in 2003 under the PLP’s watch. Even today, TDMA is not available throughout The Bahamas, and after five years of work there are still places in Nassau with poor coverage and some of the populated Abaco Cays with no service.
The FNM must be reminded that in 1998 they hired a consulting firm called MSI, recommended by Deutsche Bank (the Advisors on Privatization to the GOTB) to engineer and install the TDMA Cellular network because Deutsche Bank felt that the Bahamians at BaTelCo were not qualified to do the job and that they were in bed with the manufacturer. The design by the consulting firm MSI was so poor, that six months after the work was done an eight (8) month moratorium had to be place on cellular subscription for the newly installed network because the network was congested and service was poor.
In addition, BaTelCo had to drop its monthly access charges from $20.00 per month to $10.00 per month to placate its customers.
Maybe the FNM would wish to explain to the Bahamian people why after paying high MSI consulting fees, it ended up turning to the same engineers at BaTelCo to fix the network.
Just maybe the FNM would want to explain how come MSI ended up choosing the same company that BaTelCo had recommended in the first place.
Is this not a classic case of mismanagement of the people’s money?
Any well traveled FNM person, or FNM avid reader, or FNM tech savvy person, would know, that cellular networks are deployed in phases. Single Island Caribbean countries like Trinidad who has been in the process of deploying its GSM network for the last two years have not yet covered the entire Island. I have visited that Island this year and know of what I speak.
Spint, Cingular, AT&T, Verizon, T-Mobile are some of the many companies still deploying their networks in the USA. How much more can be expected from an Island nation of 700 Islands, Rocks and Cays?
There are still many areas in the USA and right in Florida that has little or no coverage. This observation is endorsed by the TV ads “Can you hear me? Can you hear me now?”
Deutsche Bank, the consultants hired by the FNM in 1998, approved the phased approach for the deployment of GSM in late 2002.
The FNM claims that the Bahamian taxpayer is being asked to pay for the high cost of this technology.
Where is the FNM living? Is not this the practice in a capitalistic society that consumers pay for services rendered?
Where was the FNM’s conscience for the Bahamian taxpayer, when from 1998 BaTelCo was spending over $60 Million to install the TDMA network? Just maybe it could have saved the Bahamian taxpayer some monies by cutting out the middleman, MSI.
The FNM claims that the CEO of BTC is disassociating himself from the GSM Project.
So that the leader of the FNM can be enlightened let me say, the management of BTC recommended in early 2002 on the FNM’s watch, that GSM be installed as an overlay in New Providence and Grand Bahama. BTC’s management warned, that if the overlay were not approved, congestion on the TDMA network would be the result. The visionless FNM did not approve the project and by the time my government came to power one could hardly make a call on a Friday afternoon.
Following the May 2nd, 2002 general elections, the Management of BTC recommended to the Board of directors that GSM be installed and the Board approved the Project. The Government of The Bahamas in turn gave its stamp of approval to the project. To suggest that one executive is disassociating himself from the project can only be mischief on the part of the FNM.
I wish to again inform the Bahamian people of BTC’s continuing plans for GSM.
BTC will deploy GSM next in Abaco, then Exuma and then Eleuthera and the rest of the Bahamas. Of course, GSM is already functional in New Providence, Paradise Island and Grand Bahama. In the meantime BTC is Alpha testing MMS ( photos via cellular ) and GPRS ( internet via cellular ).
BTC has signed more than 30 Roaming Agreements and is presently testing with Cable & Wireless Cayman, Jamaica and Barbados. BTC is also testing with Microcell and AT &T Rogers of Canada. BTC is also testing with Hong Kong, and Cingular, AT &T and T-Mobile in the USA.
My brothers and sisters, very soon BTC GSM customers will be able to roam seamlessly in more than thirty countries.
By sharing this detailed information with you today, I hope that these facts would dissuade the public from looking in the wrong places for answers to questions which should not even been raised. For it is self-evident that those who did not have the correct vision for BTC when it was under their command as the government, certainly cannot accurately explain or understand the visionary plans for a 21st century BTC, as put forth by the Progressive Liberal Party Government.
“EXACTLY WHAT’S GOING ON AT BTC?”
Upon my return to the Bahamas on April 22nd, Thursday past, I was informed of remarks made by the Free National Movement concerning the status of BTC’s Cyberworld Phone Shop in a Press Release, published by the Nassau Guardian in it’s April 20th, 2004 edition. I was informed that the statement, in effect, questioned whether the opening of BTC’s Cyberworld phone shop is in direct competition to the little man and is it an attempt by BTC to put the little man out of business?
Firstly, I wish to state that it has always been my government’s heartfelt mandate to empower all persons on an individual or corporate basis. And for anyone to suggest otherwise, or question that mandate, leaves me with no other conclusion than that those who question must not yet realize that the government of today is the Progressive Liberal Party and not the Free National Movement.
However, it is my duty, as the minister responsible for the general functioning of BTC, to inform again the unknowledgeable, the sincere and even the deliberate distorter of the facts, about the purpose, plans and functioning of BTC’s Cyberworld Phone Shop.
Cellular services came to the Bahamas in 1988. BaTelCo at that time was the provider of all cellular telephones and sold those telephones throughout the country through its CTOs (Central Telegraph Offices).
BaTelCo as the master distributor for brands such as Motorola, NEC, Uniden and Nokia also completed programming of its phones. The customer always had a choice to buy his/her phone from any vendor as long as it was compatible to BaTelCo’s network.
In the 90’s, cellular customers had a choice of having their phones programmed by any person who was equipped to program the phone. The fees for programming varied from $25 to as high as $50.
With the advent of the migration from Analogue to TDMA in 1998, BTC saw an up turn in its subscriber base from 3,100 subscribers in 1994 to 10,000 by August 1999 and with the lowering of cellular rates in September 1999 there was an exponential growth of some 83% CAGR (Compounded Annual Growth Rate).
By May 2000 there were 32,000 cellular subscribers most of whom brought their phones either locally from Vendors, BTC or in the USA and had them programmed by vendors in the Bahamas.
In December 2001, BaTelCo launched its cellular prepaid services branded QuickCell which BaTelCo partnered with its vendors and distributors to sell the service.
The QuickCel Phones were sold to the distributors for $175.00 and they were allowed to sell the phones for $199.00. BaTelCo also sold QuickCel Prepaid cards to vendors and distributors on a commissioned rate starting at 10% to as high as 35%. There are a number of entrepreneurs who brought bulk cards at the rate of $100, 000.00 a fortnight and received a commission of $35,000.00 per transaction.
It should be noted that more than 62,000 cellular customers were added to the cellular network in 2002 before a moratorium on subscription was placed in January 2003. Even with the moratorium in place, vendors were selling phone cards, programming phones and selling phones to those customers who needed to either replace their phones, because they were faulty, or simply wanted to upgrade to the latest model instrument.
In launching GSM, BTC again went back to its partners as a joint venture and offered the GSM Prepaid Cards, SIM cards and phones.
For those who sincerely wish to have the facts the following should be noted.
When BaTelCo launched its QuickCel services in December 2001 more that 10,000 Customers were added in two weeks. BaTelCo started the launch with a mere 2,500 Cellular phones. Its partners sold more than 90 % of the 10,000 Cellular phones.
On 15th December 2003, BTC began Beta Testing of its GSM network and by the end of December 2003 just like December 2001, some 11,000 plus GSM customers were using the network with more than 95% of those phones costing from $150.00 to $900.00 and being sold by BTC’s partners.
BTC provided to all its Beta Testers (18,000 plus) in New Providence and Grand Bahama $100 worth of free airtime and a free SIM Card with a value of $50 for a total of more than $2.7 Million.
This partnership with its customers allowed BTC to have customers critique the network and expresses their satisfaction or dissatisfaction prior to the commercial launch of the system.
BTC accommodated its partners at trade shows at the Mall at Marathon for more than three weeks during GSM Beta testing. It further accommodated them at the Whydham Hotel for the New Providence launch, as well as at the Our Lucaya Resort for the Grand Bahama launch.
It should be noted that similar arrangements were made in 2001 during the launch of Quickcell by BaTelCo.
In each instant, BTC/BaTelCo provided Radio coverage on all the local stations each day with promotional interviews for its partners. Television coverage was also provided on ZNS and Native Stew at no cost to its partners at The Mall at Marathon and at the two launches.
Today, BTC partners have a choice of retailing the following services:
- Quickcell Prepaid Cellular Phones (BTC sells the phones to the vendors at $175.00, they in turn retail it at $199.00)
- Quickcel Prepaid Cards (Commission 10% to 25%)
- GSM Prepaid Cellular Phones (BTC sells the phones to the vendor at $215.00 they in turn retail the phone at $240.00)
- GSM Prepaid Cards (Commission 10% to 25%)
SIM Cards
- Bahamas Prepaid Direct Card (Commission 10% to 25%)
- DSL services
It should also be noted that BTC’s offices are opened with definitive times with the exception of The Mall at Marathon. All other BTC facilities throughout the Country close at 5 pm weekdays and are closed on weekends and public holidays.
Customers find the convenience of the 300 plus entrepreneurs authorized by BTC to distribute its retail cellular services much more convenient than BTC facilities where the lines are long.
These entrepreneurs are strategically placed at gas stations, food stores, convenience stores, bars, restaurants and along the roadside as drive ups.
Many of these entrepreneurs have done well by prepaid cellular services considering more than $90 Million of cards have been sold. And for some, it is their number one product.
The Bahamian consumer is a well-traveled and enlightened customer. Those who have sought cellular services aboard can testify that Cellular Service Providers throughout the United States, Canada, Europe, Asia and the Caribbean all have telephone shops from which they promote and sell their product.
For the comfort that goes with reliability, each consumer would also note that the instruments are all branded with the Company’s logo indelibly placed.
I was privileged just two months ago, to visit Trinidad and was given a tour of several of TSTT’s (Telecommunication Services of Trinidad & Tobago) seventeen (17) phone shops and its super phone shop.
While in France I noted some of the 721 shops owned by France Telecom. Anyone who has traveled just to Miami would see the many AT&T, Cingular, T-mobile, Verizon, Sprint, Nextel and others with storefronts.
The Telecommunication Sector Policy of The Bahamas speaks to liberalization of the sector. BTC has to transform itself now if it is to face competition and operate as a private sector company with best practices so as to enhance its value and be privatized.
The days of operating from Central Telegraph Offices (CTOs) are gone with in the 21st century. In fact, many of our children and grandchildren don’t know what Telegraph is.
Global Systems for Mobile Communications (GSM)
As Minister responsible, I thought to also address some of the foolishness perpetrated by the seatless-wanderer of the FNM, Senator Tommy Turnquest in this same press release.
In regards to his remarks about GSM; GSM is the acronym for Global Systems for Mobile communications. It is a French acronym translated from Groupe Speciale Mobile.
GSM is the second generation of digital cellular technologies and is commonly referred to as 2G. It is the most dominant cellular technology in use today as it is established in 205 countries. Because of the widespread use of this technology, roaming for customers from their home network to another networks are now accepted as the norm.
The FNM has complained about not being able to use the GSM phones in all the Bahama Islands today.
While the FNM was in power, BaTelCo introduced TDMA services in New Providence and Grand Bahama in 1998. BTC installed the last two sites in Harbour Island and Morse Island in 2003 under the PLP’s watch. Even today, TDMA is not available throughout The Bahamas, and after five years of work there are still places in Nassau with poor coverage and some of the populated Abaco Cays with no service.
The FNM must be reminded that in 1998 they hired a consulting firm called MSI, recommended by Deutsche Bank (the Advisors on Privatization to the GOTB) to engineer and install the TDMA Cellular network because Deutsche Bank felt that the Bahamians at BaTelCo were not qualified to do the job and that they were in bed with the manufacturer. The design by the consulting firm MSI was so poor, that six months after the work was done an eight (8) month moratorium had to be place on cellular subscription for the newly installed network because the network was congested and service was poor.
In addition, BaTelCo had to drop its monthly access charges from $20.00 per month to $10.00 per month to placate its customers.
Maybe the FNM would wish to explain to the Bahamian people why after paying high MSI consulting fees, it ended up turning to the same engineers at BaTelCo to fix the network.
Just maybe the FNM would want to explain how come MSI ended up choosing the same company that BaTelCo had recommended in the first place.
Is this not a classic case of mismanagement of the people’s money?
Any well traveled FNM person, or FNM avid reader, or FNM tech savvy person, would know, that cellular networks are deployed in phases. Single Island Caribbean countries like Trinidad who has been in the process of deploying its GSM network for the last two years have not yet covered the entire Island. I have visited that Island this year and know of what I speak.
Spint, Cingular, AT&T, Verizon, T-Mobile are some of the many companies still deploying their networks in the USA. How much more can be expected from an Island nation of 700 Islands, Rocks and Cays?
There are still many areas in the USA and right in Florida that has little or no coverage. This observation is endorsed by the TV ads “Can you hear me? Can you hear me now?”
Deutsche Bank, the consultants hired by the FNM in 1998, approved the phased approach for the deployment of GSM in late 2002.
The FNM claims that the Bahamian taxpayer is being asked to pay for the high cost of this technology.
Where is the FNM living? Is not this the practice in a capitalistic society that consumers pay for services rendered?
Where was the FNM’s conscience for the Bahamian taxpayer, when from 1998 BaTelCo was spending over $60 Million to install the TDMA network? Just maybe it could have saved the Bahamian taxpayer some monies by cutting out the middleman, MSI.
The FNM claims that the CEO of BTC is disassociating himself from the GSM Project.
So that the leader of the FNM can be enlightened let me say, the management of BTC recommended in early 2002 on the FNM’s watch, that GSM be installed as an overlay in New Providence and Grand Bahama. BTC’s management warned, that if the overlay were not approved, congestion on the TDMA network would be the result. The visionless FNM did not approve the project and by the time my government came to power one could hardly make a call on a Friday afternoon.
Following the May 2nd, 2002 general elections, the Management of BTC recommended to the Board of directors that GSM be installed and the Board approved the Project. The Government of The Bahamas in turn gave its stamp of approval to the project. To suggest that one executive is disassociating himself from the project can only be mischief on the part of the FNM.
I wish to again inform the Bahamian people of BTC’s continuing plans for GSM.
BTC will deploy GSM next in Abaco, then Exuma and then Eleuthera and the rest of the Bahamas. Of course, GSM is already functional in New Providence, Paradise Island and Grand Bahama. In the meantime BTC is Alpha testing MMS ( photos via cellular ) and GPRS ( internet via cellular ).
BTC has signed more than 30 Roaming Agreements and is presently testing with Cable & Wireless Cayman, Jamaica and Barbados. BTC is also testing with Microcell and AT &T Rogers of Canada. BTC is also testing with Hong Kong, and Cingular, AT &T and T-Mobile in the USA.
My brothers and sisters, very soon BTC GSM customers will be able to roam seamlessly in more than thirty countries.
By sharing this detailed information with you today, I hope that these facts would dissuade the public from looking in the wrong places for answers to questions which should not even been raised. For it is self-evident that those who did not have the correct vision for BTC when it was under their command as the government, certainly cannot accurately explain or understand the visionary plans for a 21st century BTC, as put forth by the Progressive Liberal Party Government.