The Regulatory Authority overseeing telecoms has launched a review of concerns over what it calls “cross-market” ownership by KeyTech.The RA noted KeyTech’s holdings now include 100-percent control of one of Bermuda’s largest fixed wireline providers, BTC, as well as board control of Bermuda CableVision, the largest cable TV network, a significant shareholding of one of the two mobile networks, BDC (CellOne); and full control of the two largest ISPs, Logic and North Rock. In addition it has 100-percent control of an international cable providing service between Bermuda and other jurisdictions.“In submissions on the Market Review consultation, as well as at public forums, a number of respondents expressed concerns about KeyTech’s cross-market ownership and the implications for competition,” the RA said as part of a newly posted consultation document entitled ‘Obligations for Operators with Significant Market Power’.The Authority goes on to note: “The Authority is of the view that the concerns raised about potential horizontal and vertical leveraging by members of the KeyTech Group require in-depth review and analysis that is beyond the scope of this consultation.“The RA proposes to conduct a separate consultation of the KeyTech Group. The Authority therefore proposes to maintain the status quo pending the conclusion of a separate consultation which will evaluate the degree of market power enjoyed by the various KeyTech affiliates by virtue of their being part of the KeyTech Group, including potentially one or more affiliates that have not been designated as having SMP in a relevant market.”As part of this process, the RA proposes that BCV, BTC, Logic, BDC/CellOne, CableCo, and North Rock must obtain the Authority’s approval before introducing new bundles of services.This requirement would no longer be binding when all KeyTech “SMP operators”, BCV, BTC, and BDC, have obtained a Satisfactory Compliance Notice as set out in ECA Section.The RA notes the question was raised as to whether the possible remedies identified in the Market Review consultation report would be sufficient to effectively address competition issues arising from KeyTech’s multi-market holdings.“KeyTech owns a majority of the shares in CableCo, Logic, North Rock, and BTC,” the RA said.“KeyTech does not have majority shareholding of BDC or BCV. Despite not owning 50% of the BCV shares, we understand that KeyTech nominated the majority of BCV’s directors. Also 50% of the directors on the BDC board are affiliated with KeyTech.”The RA says: “We note that under the terms of their ICOLs (Conditions 19 and 20), no KeyTech affiliate may transfer its ICOL to another party (including another affiliate), nor may an ICOL holder allow a change of control to be completed without the prior consent of the Authority, acting with the written consent of the Minister.“In addition, as a provisional remedy pending completion of a separate consultation on SMP within the KeyTech Group, the Authority proposes to impose the obligation on any KeyTech affiliate (as defined in ECA Section 2) to seek prior written approval from the Authority before effectuating:(a) any increase in the ownership of the shares, stocks or other securities or voting rights of another KeyTech affiliate, or(b) any transfer of assets or significant groups of personnel or functions relating to the provision of electronic communications services to another KeyTech affiliate.”