Broadband internet service in Bermuda is “extremely expensive” when compared to average prices in the 50 wealthiest countries in the world.This from Government’s team of advisers on regulatory reform as they addressed stakeholders in the Island’s $200-million annual revenue telecoms industry.“Even considered from a regional perspective, Bermuda’s broadband prices seem high,” the advisers said in a preliminary report.“As was mentioned in the market definition analysis, a major factor driving broadband is the fact that, in Bermuda, broadband access and internet services must, as a matter of law, be provided under separate licences (typically held by separate companies). This enforced separation of services that are typically provided by one company as a bundled service option is undoubtedly a contributing factor to the high broadband service prices observed in Bermuda.”While Bermuda ranks 91 (download speed) and 63 (upload speed) out of 181 on broadband performance, pricing is $33.74 per MBps compared to $7.50 in Jersey, $9.28 in the Bahamas and $27.25 in the British Virgin Islands.This should hopefully finally change next spring when the telecoms industry is opened up with the granting of the first Integrated Communications Operating Licences (ICOLs).The Environment, Planning and Infrastructure Strategy Ministry’s team of legal and economic advisers includes Dr David Gabel of Gabel Communications, and Ann LaFrance, Joseph Markoski, and Jack Nadler of the legal firm Squire Sanders.The panel heard concerns from the stakeholders at the forum this past Friday on such issues as KeyTech group and its subsidiaries’ market share, wholesale pricing by major players to providers, lack of space on towers, enforcement and timely resolution of disputes.“A number of past submissions directly raised the issue of the KeyTech group’s ability to offer wide service bundles once the ICOL is implemented. BTC, Logic, and CableCo are wholly owned subsidiaries of KeyTech,” the advisers’ report said.“KeyTech also holds a substantial, but not a majority, number of CellOne and BCV (Bermuda CableVision) shares. Therefore, once the ICOL is in place KeyTech may choose to either integrate some or all of these subsidiaries, or at least increase the level of coordination between them, allowing the provision of bundles that include access and local calls, long-distance calls, broadband access and ISP service, mobile services and potentially also Pay TV.The advisers continued: “BCV will be a potential entrant into the fixed access line and local call markets once it obtains an ICOL. BCV could use its existing cable network infrastructure although some investment would be required. That BCV is 40 percent owned by KeyTech which also wholly owns BTC, potentially limits BCV’s incentives to enter and compete aggressively with BTC.“However, the RA (Regulatory Authority) notes that KeyTech is not BCV’s major shareholder. Therefore, the extent to which BCV places a strong competitive constraint on BTC is unknown though it is likely that, in any case, many customers will be reluctant to switch until number portability is in place.”The advisers also looked at mobile providers’ pricing and concluded: “For customers wanting entry level mobile plans, Bermuda is more expensive relative to what is observed in other countries of comparable size. This possibility is underscored by the fact that for consumers in the other countries depicted in the tables, even cheaper post-pay plans (with, of course, lower amounts of minutes and messages) are available then can be obtained in Bermuda; and, for top tier mobile plan customers Bermuda is, by and large, less expensive relative to what is observed in other countries of comparable size.”Acting Minister of Environment, Planning and Infrastructure Strategy Patrice Minors opened the public forum, with Minister Marc Bean away getting married.“As some of you would know, our advisory team worked with us leading up to the passage of the RAA and the ECA, and we are thankful that they are now helping us to implement those landmark laws,” Ms Minors said.“They are here with us today to provide you with an overview of their recommendations, which are reflected in the pre-consultation documents and importantly to hear from and listen to you.”She continued: “Why have we decided to conduct a pre-consultation process? In his remarks on September 27, Minister Bean explained and I quote, ‘To ensure an orderly transition, I have decided to defer, until the first week of January 2013, the date on which the Regulatory Authority Act and the Electronic Communications Act become fully effective and the Authority assumes responsibility for regulating the sector’.“At the same time, however, the Minister made it clear that he remains committed to converting the licences of existing A, B and C carriers and other PTS licensees to Integrated Communications Operating Licences (“ICOLs”) by April 1, 2013.“Deferring the Regulatory Authority’s start date, while preserving the commitment to convert existing licences to ICOLs by April 1, means that the Authority will have less time to conduct the consultations that must be completed before the ICOLs can be issued. In order to ensure that this critical deadline is met, the Minister has decided to provide the public and industry with an opportunity to submit comments now, based on the preliminary recommendations of our outside advisers.“The comments received during this pre-consultation process will be given to the Regulatory Authority, or the ‘RA’ as we are now calling it. I anticipate that the RA will carefully review this information, and use it as a major input in preparing the consultation documents that must be issued, shortly after the RA Commissioners take office.”