The Bell Telephone Monopoly vs. BTL

For almost a century, Bell Telephone (renamed AT&T in 1899) enjoyed a monopoly in the United States.   This allowed the company to recoup its investment in equipment and capital improvements like buildings, poles, purchased right-of-way, etc.  Eventually (1913) the US Government put a cap on Bell's profits, limiting them to 10% after taxes.  To hold to this low margin, Bell burned excess profits by spending them on R&D within two of its sub-companies, Bell Laboratories, and Western Electric.  

In spite of this cap, Bell was one of the most successful companies in the history of the world.  It was the largest US corporation until it was forced to split in 1984. (You can read all about the details here.)  When it split, into AT&T and seven regional operating companies (called the "Baby Bells") its total annual revenues were 50 Billion.  In a dozen years, AT&T was grossing 50 Billion, and the Baby Bells were grossing 50 Billion!  AT&T's share of the long distance market dropped from 90% to 50%, and rates dropped by 40%.  But (surprise!) telephone calls lie on a demand curve, and the lower the cost, the more the customer buys!  In 1984, volume was 37 million calls a day; by 1989 it was 100 million, and by 1999, 270 million.  Of course, AT&T is immensely profitable, while offering services that are competitive, and lower than anyplace else in the world.  

The BTL Monopoly

Originally, the Belize Telecommunications Authority, like British Telecom, was an instrumentality of the GOB (Government of Belize.)  In 1988, it was "privatized", becoming Belize Telecomunications Limited, a private company with a 15-year license to provide all telecommunications services within, in and out of Belize.  Sometime after that, it went public, and is now owned principally by the Carlisle Group headed by Lord Michael Ashcroft    The Carlisle Group is also the principal owner of Belize Bank.  

Unfortunately, at the time it was privatized, no cap was placed upon BTL's profits, and its margin has at times exceeded 40%. So, BTL is immensely profitable, but at the expense of the Belizean Public, who pays some of the highest rates in the world for local, long distance and internet service. 

NEW:  If you haven't seen it yet, you should read Mark Espat's expose of the checkered history of the BTL since the monopoly expired. 

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