Ministry of Budget Management, Investment and Trade

GOB Issues Stop Order Against BTL

28 December, 2001 - Belmopan

The Government of Belize has issued a Stop Order against BTL requiring

the company to cease implementation of the new tariff structure until

the socio-economic impact of the changes can be properly assessed.

In a meeting held today between C.A.P.U., Minister Ralph Fonseca,

Attorney General Godfrey Smith and Beltraide Chairman Eamon Courtenay,

C.A.P.U. said that “they fully endorsed the issuance of the Order

by the Government”.

Under Section 23(3) of the Telecommunications Act this Stop Order will

take effect 28 days after notice of the Order has been served on the

licensee, BTL.

It is noted for the record that at no time has government given approval

to BTL for the proposed tariff re-balancing.

Under Condition No.10 of BTL’s license, it was the practice for

any revision of tariffs to be agreed between the Minister of Public

Utilities and the licensee having regard to the development and

financial plan of the company and “the interest of the

users”. BTL has not complied with this condition and practice.

Indeed BTL is now seeking by court proceedings to prevent the Public

Utilities Commission from holding public hearings on the issue.

BTL has also failed to comply with Condition 5.5 of its license

requiring the company to consult with the Director of Telecommunications

on the methods of payment to be used for services in Public Call Boxes

(Pay Phones) and on the distribution of these methods of payment.

Cognizant of the need to maintain a stable investment environment in

Belize, government has sought to move very discretely and in a spirit of

finding an amicable solution where investors and the public would be

adequately serviced. Unfortunately two factors now compel the Government

to act. One factor has to do with timing, since the PUC will not now be

able to review this matter before the end of December which is the end

of a billing period. The other is that numerous efforts to find a timely

compromise have been frustrated by BTL’s insistence on

implementing their strategy to take on competition one year before its

occurrence by placing the burden of its re-balancing programme on the

backs of humble Belizeans.

In keeping with the manifesto commitment to reduce telecommunication

rates, Government is moving ahead with the decision to end the monopoly

and to introduce competition in the telecommunication field.

The failure of BTL to expand in rural areas and to offer better quality

and better priced products has obliged government to contract out a

government system to service educational and government needs. This

system will begin coming on line in the first quarter of the New Year.

The new owners of this contract, Avanzit of Spain, have committed to the

process of reducing rates.

Government and the PUC have assured BTL and Avanzit that the licenses

that will be issued for January 1st.2003 will provide all licensees with

a level playing field with the same market, obligations and pricing

methodology.

This message was sent to you via the Government of Belize Website:

http://www.belize.gov.bz