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Richard Dodd, CEO of LIME
Richard Dodd, CEO of LIME

It is company with a long history of association with the Caribbean which reaches to the period when the islands were colonies of the then British Empire. Having operated under the name Cable & Wireless and in recent times the LIME brand, a negative impression if ever there was one when seen in a cultural context, what do we have?

LIME has extracted enormous profits from a region which is still developing and some might say that it is a region which lacks the resources to be ever world class in the global definition of things. At the top of the list of Caribbean countries contributing to the bottom-line of C&W, now LIME, has been Barbados.

It is no secret that successive Barbados governments have placed a heavy importance on developing an efficient telecommunications infrastructure, and relative to our Caribbean neighbours we have to agree we have done so with some success. Perhaps it explains the generosity of the Public Utilities Board now morphed to the Fair Trading Commission to C&W over the years.

We don’t pretend to know how the complicated system of price-cap works but we understand from the experts that given LIME’s continuing monopoly status the results of such a system is skewed in favour of the monopoly. Despite some of our best brains operating as Intervenors the monopoly has been able to make its London-based shareholders smile perennially.

There is no doubt that an efficient and relevant telecommunications infrastructure is a requirement to creating opportunities to achieve developed status as a country. The cost which Barbados has had to pay to achieve a highly developed state maybe coming back to haunt us.

If we measure the achievements of Barbados by the economic and other indicators which our politicians love then Barbados has done well. The price to achieving a high standard of living has led to an increased cost of doing business. Despite LIME having pillaged and raped Barbados over the years the time has now come to move on to one of the other less-developed islands to repeat the cycle. The decision to shift call centre operations to St. Lucia and elsewhere illustrate the point.

The snippet below was taken from yesterday’s newspaper, the utterance of LIME’s CEO Richard Dodd leaves no doubt as to where Barbados now finds itself. The price we have to pay for being developed you say?

“I already said that we are going to lose staff. I  said that last June. I said we were going to lose 1 200 people across the region and move to an end point  of around 2 500. So far around 750 people have left the business,  so we are well advanced down that path and that would be concluded in the next three to four months  . . . . What we announced today is just part of that ongoing process,” Dodd stated.

“Barbados is lagging in our transformation journey. We are keen to get to the end state in Barbados so we can get the business operating really well,” he said.

Source: Nation Newspaper

The knowledge that Sir Allan Fields headed the Private Sector at a time when the envied social partnership was framed provides bitter comfort to the hundreds of Barbadian LIME employees on the breadline. Further comfort would have thought to be forthcoming from Sir Hillary Beckles whose legacy counts his valiant battle with the Mutual, known as The Mutual Affair. The two Knights mentioned now make-up the C&W Board, an oxymoronic state if ever there is one.

LIME continues to send home Barbadians at a time when they have recorded unprecedented profits in 2008. The Barbados Workers Union (BWU) continues to be made a fool of with the LIME impasse being a long line of other unresolved disputes where workers have been marginalized with weak representation. The government appears to be helpless in the face of free market forces. The consumers continue to accept shoddy service from LIME even as they are being shafted…

Business as usual on the Paradise Isle.


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  1. Sir Leroy or PM Thompson please help the PEOPLE!

    @Chris

    Know what you will say. The people must help themselves right!
    When people are challenges people in a position of know must offer help is our response.


  2. @David…

    You are correct. I believe that people must help themselves, in this case by taking advantage of any and all competition which exists. Companies generally only respond to customers when said customers have, and use, alternatives.

    However, those who regulate also have the critical responsibility to ensure that competition actually exists. Read: the Government. Read: the Fair Trading Commission (FTC).

    And interesting empirical test to see how serious the FTC is about competition in the International Direct Dial (IDD) marketplace is before us now…

    On January 11th of this year the FTC published on their web-site, and (once) in the local Forth Estate, notice of a Public Consultation on the “consolidated” Reference Interconnection Offer (RIO) was given.

    The RIO is an extremely complicated document, filled with legal and technical jargon. It is a standard offer for services which LIME must make available to any and all requesting competitive telephony carriers.

    Unfortunately, the previous versions lacked a definition for “Outgoing International Call Termination”. This meant that while a carrier could bring calls into Barbados, they were not allowed to take them out. I have written about this before. Please see: http://www.ideas4lease.com/blog/2008/02/18/enforce-the-telecommunications-legislation/

    Ironically, the new “consolidated” RIO is still lacking this service definition. Therefore, if approved, it will still be illegal for carriers to offer competitive outgoing international calling, and so our international rates will remain many times what they should be if market forces were allowed to operate.

    This would be tragic. Further, this would be contrary to the laws of Barbados currently on the “books”, as defined by the Barbados Two Stage Dialing Policy and the Equal Access and Indirect Dialing Policy.

    As an experiment, I personally did not submit comments to the FTC. My reasoning is that the need for this service description has been written publicly by myself (the above article appeared in the Barbados Advocate Business Monday 2008.02.18). I also spoke publicly about this issue at the FTC’s annual lecture (to the gasps of some in the audience). I mentioned it to a key representative of the FTC during the BL&P hearing, who acknowledged that she’d heard me say so at the lecture. And, even more critically, this requirement was repeatedly debated and minuted during the development of the above two policies in numerous meetings of the Telecommunications Act Revision Committee (TARC) and its Technical Sub-Committee.

    I concluded, and wanted to determine empirically, that if the FTC didn’t understand the need for an Outgoing International Call Termination definition in the revised RIO, then this would be proof that there is simply a systemic issue which would need to be addressed at another level.

    I eagerly await the results….


  3. @Chris

    We are confused!

    Why would the FTC not heed the request to define Outgoing Carrier Cost?

    What could be the systemic issue?

    We don’t buy it, information must be missing!


  4. @David et al… In order to avoid moderation because of too many links, I’m breaking this down into a few messages…

    With regards to the RIO… Several hundred pages. You’d need a good lawyer and a good engineer working together to understand it. Or, you need to be able to read, and have some time…

    The critical document is: http://www.ftc.gov.bb/library/rio/2008-11-26_consolidated_rio_service_description_full.pdf

    The critical page of this document is simply the “Contents” page; 2#.

    Therein is listed all the services defined by this offer. Note the lack of any “Outgoing International Call Termination”.

    There is, however “Incoming”. One might ask how any liberalized telephony marketplace (which we claim to be) would have missed such an obviously asymmetric definition.

    Interestingly, my interpretation of this document is that Two Stage Dialling would fall under the “PSTN Termination Access Service”.

    However, LIME disagree. And this is why TeleBarbados and (the then) C&W have a court case pending…

    It is also worth noting that the RIO only specifies all the services to be carried over an “Optical In-Span Joining Service”. This is a very expensive, fibre optic means of physical interconnection.

    This is a barrier to entry for new entrants. As specified in both the Two Stage Dialling Policy and the Equal Access and Indirect Access Policies, copper-based circuits are also to be allowed.

    *IFF* these policies were to be implemented, the costs to Bajans wishing to dial Internationally, and even more importantly, the costs to those Internationally wishing to call Barbados, would drop.


  5. @David: “What could be the systemic issue?

    May I please refer you et al to ROK and my submission to the FTC with regards to the Price Cap Mechanism:

    http://www.ideas4lease.com/blog/2007/10/29/bango-ftc-written-submission-on-price-cap-mechanism-review/

    Like I said, I eagerly await the results from the FTC on the RIO.

    Either Bajans will soon have the opportunity for more affordable internationally telephony, or else, empirically, there is a systemic issue….

    (P.S. David… You have an error in your Blog above. It’s Price Cap, not Price Gap. Although the mistake is amusingly accurate….)


  6. One word “DIGICEL”


  7. We are surprised that BU family has not picked up on Dodd’s quote.
    Whether the government or Union are against it he has indicated LIME
    is moving full steam ahead with its retrenchment plan


  8. @David…

    To be very clear, Dodd et al are simply doing their jobs.

    (Once again, you have read your Machiavelli. Right?)

    The real question is: is the Government et al doing theirs?


  9. so basically, the FTC is aware of this missing element, aware that its contrary to the law, but does nothing?

    fair trading huh. that stinks. something else must be being traded fairly often for this to be overlooked so blatantly.


  10. L =Lying
    I =Incompetent
    M=Morons
    E =Extraordinary


  11. @GBL Blog et al…

    I hope that you’ll appreciate that I have to be *extremely* careful what I say… (But, on the other hand, I am always prepared to go right up to the line, and perhaps poke across it…)

    For the record, the Barbados Two Stage Dialing Policy was approved by the Barbados Cabinet and issued by the Telecommunications Unit of the Ministry of Economic Affairs and Development 2007.11.16.

    Please see http://www.telecoms.gov.bb/Documents/Policies/pdf/Approved%20Barbados%20Two%20Stage%20Dialing%20Policy.pdf

    The Barbados Equal Access and Indirect Access Policy was approved by the Barbados Cabinet and issued by the Telecommunications Unit of the Ministry of Economic Affairs and Development 2007.11.16.

    Please see http://www.telecoms.gov.bb/Documents/Policies/pdf/Approved%20Barbados%20Equal%20Indirect%20Access.pdf

    For the record, these policies were passed into law after the previous RIOs.

    Therefore, while an Outgoing International Call Termination Service Description in the previous RIOs might have been impotency short-sighted, it was not actually against the laws on the books at that time.

    My interest is in what the FTC will produce as policy with the “revised” and “consolidated” RIOs, taking into consideration these policies…

    Now that *we* are *here* and *now*….


  12. LOL… My comment is awaiting moderation…

    I made the mistake of including two links, instead of only one….

    (ROTFL…)


  13. F=FRIGHTEN
    T=To touch big boys
    C=Cause in Barbados the status quo must be maintained and only certain people get harassed; locked -up; denied rights and blocking of aspirations


  14. David…

    Thank you for releasing my post of 2009.04.27.1508 above.

    @BU.David: Are you able to say *exactly* (or, even, approximately) when this release took place?


  15. @Chris

    Not sure, sorry about that Sire!


  16. There will never be real progress in this Region if communications costs are high. Countries with the lowest Telecom rates will attract the most investment. The same is also true with Regional travel where amost half of the cost is in taxes.

    It all starts with a POLICY wherby governments fully understand what is best for the country, and implement the right policies. It seems to me that governments mouth the goals that reflect the wishes of the people but fail to implement them in their policies. The reasons can either that they are ignorant as to what has to be done, or that they are purposely continuing to enslave their peoples for the selfish interests of the monopoly and oligopoly entities… take your pick.

    C&W’s tactics in the Region to block and delay competition are well documented. Governments, like T&T have sat back and allowed this. Here in Barbados we have had high C&W-LIME interconnection ratesfor mobile services, thus keeping competitive mobile rates rates high.
    Now they have another, more important, interconnection block in place to prevent a company like Tele-Barbados from really competing with high speed Internet, as C&W (LIME) own the copper wires that would link to Tele-Barbados’ fibre-optic undersea services out of Barbados. Therefore Barbados is destined to have a monopoly even though they present the facade of free competition.Does the Government intend to stop this impediment to the development of the country, or are they fully aware of it and intend to do nothing? I believe, like the previous BLP government, that they will do nothing. Why? You guess!

    As for Digicel… they are part of the oligopoly control whereby they maximize profits by not radically reducing the per minute rate for mobile calls. Most call are under three minutes and their present advertising fro Digicel – Digicel calls, although a good one, does not address the high costs in communications. They are not putting enough price pressure on LIME as they are also making excessive profits.

    The Government has to get serious about a number of issues… communications is the most important as this is an island and the largest foreign exchange earners are Tourism and International Business. – both depend heavily on communications.

    Barbadians have to wake up and cast off the chains of Economic colonialism.


  17. I have always believed that Utilities, which include communications and the retailing of gas, should be Government controlled. Give me a few black outs per year if it means that that light and telephone bill would be the size of my NPC and water bills.

    Jesus Portalatin Chris, what you are referring to (Systemic problem) is the single most major flaw in our system of governance. What I would give to be a fly that takes up residence under the table.


  18. The workers at C@W (not LIME( ’cause the workers have no official LIME contract) are aware of Dodd’s statements. Government is not


  19. @Bill

    Can you elaborate?


  20. Sir Leroy, Sir Hillary and Sir Allan know ’bout Dodds remarks too.


  21. @Asiba-The Buffalo Soldier: “F=FRIGHTEN
    T=To touch big boys
    C=Cause in Barbados the status quo must be maintained and only certain people get harassed; locked -up; denied rights and blocking of aspirations”

    F – Failing
    T – The
    C – Consumers

    For allowing so much skyrocketing prices in this Country and not enforcing the laws available.

  22. Rumplestilskin Avatar

    Where there is political will, there is a way.

    The Government can make whatever legislaiton it pleases, with the right majority and it certainly has enough parliamentarians.

    Certainly, maybe it is time that additional ‘fees’ as a percentage of profits, are placed on large corporations that operate in a ‘monopolistic position’, being defined accordingly by the Government to suit the circumstance.

    As I said, where there is a will…anything is possible.

    Having said that, it is clear that these large corportions have no concern of staff nor socio-economic circumstances, firing people in times of deep economic strife, whilst their profits bloom into the stratosphere.

    Huge profits, yet staff can go home, families are no concern to these corporations.

    They have not learned the lesson of 2008, that is still under exhibition, that the pillar of profits at the expense of all else, will ultimately fail.

    This comes under the umbrella of the greatest of laws, natural laws, that the ‘whole’ will be protected, in the long term.

    Peace & Live Strong

  23. Rumplestilskin Avatar

    “Earth provides enough to satisfy every man’s need, but not every man’s greed”

    Mahatma Gandhi


  24. @Ecoanalyst: “Now they have another, more important, interconnection block in place to prevent a company like Tele-Barbados from really competing with high speed Internet, as C&W (LIME) own the copper wires that would link to Tele-Barbados’ fibre-optic undersea services out of Barbados.

    Ecoanalyst… I resonate deeply with what you’ve said above.

    I believe strongly that unless Bajans can talk with those “away” for at a reasonable cost, then we will always be at a disadvantage. If the young entrepreneur thinks twice about calling internationally because of the cost of doing so, then they are at a disadvantage. Same for a business considering establishing an office here.

    In my opinion, even worse, if those away hesitate to contact someone in Barbados because of the high telephony costs, the same disadvantage to our people from potential business exists.

    Just to be pedantic, the interconnection you refer to in your above quoted language is called “Local Loop Unbundling” (LLU), and is a critical step in any liberalized marketplace. This topic is on the TARC’s agenda. (I can’t go into more detail than that.)

    This is why I raised the issue of Pole Access at the BL&P Hearing. The fact we here in Barbados don’t have a co-ax video delivery route means that only a single entity have access to the “last mile” connection to the home.

    But, for the record, the TARC have been rather inactive for the last while (read: sixteen (16) months)….


  25. F +T+C F-T-C
    ———– x ——— =RUBBER TEET
    FxTxC F(TxC) DOG


  26. Formula F T C
    ————————
    F +T+C F-T-C
    ———–
    FxTxC F(TxC)

    =

    F-T-C
    ———-
    F (Txc)

    = RUBBER TEET DOG


  27. (F +T+C) x 3

    = RUBBER TEET DOG

    however you look at it
    it comes out the same


  28. @BU Family…

    Many people think that Telecommunications is an extremely complicated domain. This is actually not true — it is actually quite simple, once you get down to the fundamentals.

    In today’s post, I would like to talk about international (AKA long distance) dialling and calls. I am going to use the term international because that is what we in the Caribbean are used to. But be aware that in larger countries, “Long Distance” is used because metered rates are often required even when calling within the country (or even state or province). Also, I’m going to assume the calls are using the ITU-T E164 numbering plan (read: NXX-NXX-XXXX), although other calling areas (e.g. Europe) are similar.

    Other than VoIP (which is completely legal here in Barbados) there are three ways to call internationally. From the consumers perspective:

    1. International Direct Dial (IDD), also known as 1+, +1, Equal Access and Carrier Pre-Selection (CPS).

    This is what most people know and use when calling internationally. They pick up the phone, dial 1 to acknowledge that they know they will be charged for the call, and then dial a ten digit number. The call is initiated, and if a connection is made (read: the called party answers), the caller is charged a certain amount per minute.

    2. 10-10, also known as Indirect Access.

    This is a common service, used internationally, to provide access to alternative carriers. The caller dials “10-10”, and then a three digit number identifying the Competitive Local Exchange Carrier (CLEC) they wish to use, and then the 10 digit phone number of who they wish to call. Charges are similar to that of IDD — per minute (or per second), with possibly a set-up charge (sometimes billed by way of a higher first minute / first three minute fee).

    The billing for this varies. In some countries the Incumbent Local Exchange Carrier (ILEC) bills the customer, and pays the CLEC. In others, the CLEC charges the customer based on their Caller ID (CID), or they require the consumer to enter a pass-number or a credit card number before connecting the call.

    3. Two Stage Dialing (TSD).

    This is also a common service internationally. A CLEC provide a local phone number to dial through the ILEC. Once connected, the consumers hears a dial tone, where they enter the 10 digit phone number they wish to connect to. Once entered, the CLED asks for a pass-number or a credit card number, and the call completes.

    For us here in Barbados, all three dialling options should now be available. They are all defined in the Two Stage Dialing Policy and the Equal Access and Indirect Access Dialing Policies.

    However, it is important to note that options number one and two (Equal Access and Indirect Access) *require* that the interconnecting CLECs are allowed to provide Outgoing International Call Termination (OICT) service description.

    Equally important, it is worth noting that TSD does *not* actually require the OICT service description, since it is really nothing but a local call.

    Lastly, it is *critical* to observe that LIME offer all three dialling options to their customers. If Fairness was actually in place here, anything LIME (the ILEC) offers to its customers, licensed CLECs should be able to offer as well.

    It costs a carrier less than 2 cents (Barbados) a minute to terminate a call into the North American network. International calls in North America cost less than 10 cents (Barbados) a minute to consumers. There is no reason why these same types of rates could not be seen here. But if, and only if, competition was allowed to do its magic (Adam Smith’s “Invisible Hand”).

    I know I’m beating a dead horse here, but I’m hoping that perhaps this Blog is being read by those who can actually make things happen here in Barbados.

    The Laws exist to allow competition in international calling here in Barbados.

    They simply need to be enforced….


  29. @Chris

    If what you have written is correct then BU is able to make the point
    that the regulatory authority and by extension government is complicit
    in contributing to high telecom charges and therefore high cost of
    living.


  30. @David…

    As I think is clear, I never say (or write) anything I’m not prepared to defend in court.

    And if anyone is seriously interested, all they need to do is download the documents from the web-sites of two of the BB.Government’s agencies.

    I will, however, let you defend what you’ve written immediately above.

    *I’m* simply wishing to see an OICT definition in the revised RIO, as must be approved by the FTC.

    Again, as I said above, I eagerly await the results from the FTC on the revised RIO….


  31. Don’t doubt you at all when it comes to telecom matters Chris.


  32. Well it’s rather easy to do what you please as the monopoly. I still don’t know why Barbadians allow it. The person who owns Flow wanted to set up shop in Barbados was denied it by the government. C&W Jamaica used to be just as BAD as C&W Barbados is right this second until Flow came in and shook things up. Contrary to the old sayings you don’t need a monopoly in small countries, and you don’t need a monopoly to give incentive to penetrate the hard to reach places. Few economists still agree with that.

    I now pay BD$60 to lime for a measly 512 (or is it 1mb?) internet connection a month. Flow Jamaica gives you a 8mb connection for the same fee. In response to globally competitive prices C&W Ja has responded with a whole host of services and discounts.

    Chris I agree with you 100% Barbados needs to see some competition in the markets.


  33. @townecrier

    It is interesting to see why Columbus Communications was not awarded to start their services here.

    We need competition Government, not monopolies or duopolies.

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