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CSB: Broadband market being stymied

The Computer Society of Bermuda (CSB) has raised "deep concerns" over the future of Bermuda's telecommunications sector in light of recent rulings handed down by the Telecommunications Commission to scheduled access providers.

The CSB said the ruling by the Commission that Bermuda CableVision should offer its 6MB service at the same price as its 4MB service indicated that the Island may be deliberately denied from moving ahead in the provision of higher speed broadband service to the community.

It also questioned why the Commission took nine months to address the requests, holding back the progress of telecommunications in Bermuda, and how it arrived at the decision on cost for the services, with customers paying over the odds or not being able to take advantage of full access speeds.

At the end of last month, the Commission responded to requests for tariff approval to offer the 6Mb unbundled package by BTC and 6Mb and 8Mb service by CableVision, directing that BTC provides its new Simply DSL 6.0 service at $39 per month, which must be operational by August 31, and CableVision provides a new 6Mb x 4Mb service at $35 per month, also to be up and running by August 31, while its 8Mb x 4Mb service was rejected.

"While this news should be celebrated, The Computer Society has concerns with the Commission's findings and the directives placed on the carriers," said CSB director Raymond Seymour.

Mr. Seymour highlighted a number of areas of concern, including the Commission's statement that both companies failed to meet their tariff request filing.

"We find this difficult to fathom, since the introduction of broadband in Bermuda, both companies have complied and filed successfully on many occasions," he said.

"We question why these filings were made different from past procedures. And why nine months were allowed to pass before these requests were adequately addressed by the Commission.

"In that time, international providers have since rolled out 101Mb service and Bermuda's prices have been allowed to rise dramatically based on comparative services - 1Mb in Bermuda has stayed at $100 per month; meanwhile 101Mb service has been allowed to roll out in New York for $100 per month.

"This demonstrates the price of bandwidth has dropped so low that high volume can be sold at reasonable rates, even in Bermuda. Through lack of action, it appears Bermuda's broadband market is being stymied."

Mr. Seymour also expressed concern over how the Commission deliberated the cost and benefit for the customer, having stated it had no data to support the requested prices or incremental charges.

"By CSB's calculations, the Telecommunications Commission has signed off on making customers waste up to $34.27 each month or 98 percent of the provided access for customers that pay the least," he said.

"This we see as being grossly unfair to the consumer and presents poor judgement on the part of the Commission, particularly when economic conditions are so tough.

"To ensure efficiency, it is always important to match the access speed and ISP (Internet Service Provider) speed. The Commission has caused a problem by directing providers to sell customers higher access speeds with little option to match their ISP services.

"Further, they have been particularly brutal with CableVision by directing them to sell only 6Mb service, by causing a phase out of their 4Mb service. Also, BTC are left having to sell customers a bundle of voice and 4Mb access or 2Mb and 6Mb as an unbundled services."

But Mr Seymour said the CSB was most disturbed by the statement from the Commission indicating that any amended filing for these same data services within the next six months was unlikely to be successful.

"While directed to CableVision, the Commission clearly fails to understand the directive is directed at all of Bermuda," he said.

"They clearly missed that their statement is signalling to the ISPs they can retain their pricing schemes for until 2010. The directive gives ISPs reason to keep prices high because there is no indication that the access providers will be able to increase access speed."

He also queried why the new 8Mb service applied for by CableVision had not been approved and was being denied to the Island's market with no detail about the reason behind the decision in the Commission's letter.

"We are sincerely disappointed by this matter, the Telecommunications Commission should have the vision to advance Bermuda's telecommunications systems, not impede or restrict the progressive evolution of services," said Mr. Seymour.

"We are hopeful that the Minister of Telecommunications will step in and correct this matter as it unduly burdens consumers, deliberately indicates to Bermuda it will be in a telecommunications standstill with regard to broadband service and ensures high prices will reign until 2010."

The public can go to the CSB website and download the "Waste of Broadband" document (at www.csb.bm and by clicking on Library) to leave comments on its Facebook page at www.facebook.com/computersociety.