In the early 2000s the Barbados government took the decision as a member of the World Trade Organization (WTO) mandate to liberalize our telecommunication sector. For many years Cable and Wireless was the single telecom player licensed to provide services in Barbados. Cable and Wireless was the classic monopoly and raked in millions if not billions in profits since its establishment in the 19th century.
With the liberalization of the sector there was high expectation from the public that with fair competition, supported by the creation of a regulator and relevant legislation there was a new dawn. The late Prime Minister Owen Arthur as lead HoG for CSME matters was quoted in 1998 as saying – “Mr. Speaker, one of the areas of gravest deficiencies in our economic affairs is the set of arrangements in place for regulating the affairs of public utilities, and monopolies and protecting the interest of consumers and producers who have to relate to such monopolies“. It is fair to opine that nearly twenty five years later, Barbados telecoms players have NOT been able to satisfactorily monitor service standards, respond to customer complaints or guarantee affordable rates among other promises.
On a daily basis Barbadians have to complain about poor service meted out by FLOW– the latest iteration of Cable and Wireless- not to forget the other public utilities, Barbados Light & Power (BL&P), Digicel and Barbados Water Authority (BWA). In the mind of the blogmaster the inability of successive governments and regulators to expertly intervene in the domestic market to ensure optimal efficiency and effectiveness in our utilities space continues to be a concern. It should be obvious to policymakers that a fit for purpose infrastructure for our utilities to operate is a necessary plank to nurture social and economic development.
In recent weeks FLOW took a decision to increase the cost of home internet plans by about $5.00 for many customers. It also took another decision to discontinue the rollover minutes feature on some if not all plans – FLOW then increased data allotments to customers affected as a way of stemming concerns at the change in benefits. From all reports the product changes were not fairly disclosed to Barbadians. There has been no commentary from local media players to highlight the money grab policy by FLOW. Importantly, there has been no censure coming from government and the Fair Trading Commission (FTC). Ironically Prime Minister Mottley was in the news a couple weeks ago congratulating FLOW on the launch of JUMP, an initiative to deliver affordable broadband to low income households. The script from the FTC is that some telcoms services are not regulated.
In a related matter a rate request submitted by Barbados Light and Power has been mired in process and bureaucratic wrangling approaching almost one year. However, it has not escaped sensible Barbadians the FTC was surprisingly quick to approve an interim rate relief application at 50% of BL&P’s rate request. The supine approach to the job by local regulators ensure Barbadians will continue to be ‘chafed’ by the system.
The hard fact is that the buck stops with government to ensure relevant laws are on the statute books and to establish regulatory agencies able to deliver on mandates without hindrance. Government’s role is crucial given the lack of active consumer agencies in the country.
Now we know why so many opt to be cynical. Is there good reason to keep hope alive?
The blogmaster invites you to join the discussion.