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Caribbean Utility Regulators Meet in Belize
posted (November 5, 2008)

The PUC may be embroiled in mortal combat with BEL, but that isn't stopping the regulator for rolling out the red carpet for over 60 representatives form 13 Caribbean countries who are here for the 6th Conference of the Organization of Caribbean Utility Regulators, known as "OOCUR." The attendees include international utility experts, utility providers, regulators, and stakeholders who are huddled at the Princess Hotel and Casino discussing shared experiences and challenges. And according to OOCUR'S President, Floyd Phillips who is from Barbados, the biggest challenge right now is forging a harmonized regulatory regime.

Floyd Phillips, President OOCUR
"The purpose of this meeting really is to pull the various regulators to try to discuss the possibilities of a common regulatory framework throughout the Caribbean and that is the theme of this conference and this is what we've been pushing for from the time we decided to form OOCUR."

Jules Vasquez,
Now we can't even properly start up a CARICOM Single Market and Economy. How would we install one single regulatory regime?

Floyd Phillips,
"Well it wouldn't be easy like everything else; getting different cultures, political persuasions together, it wouldn't be easy but one thing coming together very nicely is the area of telecoms. Legislation is pretty much the same right now with respect to telecommunications, throughout most of the territories in the Caribbean."

John Avery, PUC Chairman
"You would be surprised to know Jules that in terms of a common framework of legislation for the Caribbean, we are well ahead of CSME and CARICOM and as I said in my address to the body, to me this is what we need to act as catalyst to actually implementing the goals of CARICOM and CSME. And hopefully that will lend support to the overall CARICOM movement."

And one of the most pressing regulatory issues in CARICOM is communication in the rapidly changing TELCOMS industry. Voice over Internet, or VOIP is legal in Belize but independent use via Vonage or SKYPE is blocked by BTL. Phillips says that old copper companies like BTL do merit some protection.

John Avery,
"In the telecoms area, technology is moving well ahead of laws and regulations and it is always a struggle for the regulators to keep up but we have competition and competition provides a form of regulation on its own."

Jules Vasquez,
We know that in a lot of the territories in this region, there has been one dominant provider but because of digitization, the progression of technology, now new providers don't necessarily need the capital base to challenge established providers. Is there a situation where those companies need some level of protection in order to continue providing good essential national services?

Floyd Phillips,
"Yes they do because they have the infrastructure in the ground already and there is a need for some provision for universal service where legislation makes the competitors contribute towards universal service."

But according to Communications Minister Melvin Hulse, universal coverage is far from what his division is getting. He's from Stann Creek west " an electoral area comprising 26 villages. He says they have been completely neglected by the dominant market provider.

Hon. Melvin Hulse, Minister of Public Utilities
"The greatest need in particular the rural areas of this country is internet. If you cannot get the internet system into the schools, it disadvantages the children automatically."

Jules Vasquez,
In 26 villages (in Stann Creek) how many have access to internet, even if they pay?

Hon. Melvin Hulse,
"None. The technology must be cheap and accessible to people. So to tell me the only way I can get it is at the cost of this exorbitant rate, our utilities are not upgrading their system and taking advantage of technology. That is ridiculous and criminal."

Jules Vasquez,
But isn't your government jeopardizing that to some extent by contemplating a higher tax on telecommunication companies? It is rumoured to be in the vicinity of 25% on their gross.

Hon. Melvin Hulse,
"Well I don't, a couple of things are that they are jeopardizing, you can't jeopardize what is not out there. So how are you going to jeopardize it. If I make you pay a more equitable tax on it, you are going to spite us? We don't have it, how do the heck you will spite us?"

And while Hulse wants internet for his area, Chairman of the PUC John Avery wants BEL to get moving with new installations.

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