Prime Minister John Briceño says Cabinet’s decision to ultimately not support BTL’s $80 million proposed acquisition of Speednet/SMART was not a decision made on his own.
“I think you need to understand that whatever we discuss in Cabinet is confidential,” the PM told News Five this afternoon. “I believe that Cabinet in its wisdom decided that we should not proceed.”
On Friday after Cabinet’s decision was announced, Speednet issued a statement essentially pointing out that government telecommunications contracts will have to be publicly tendered, while BTL’s dominant-provider designation will bring obligations aimed at strengthening competition. These include infrastructure sharing at cost and possible changes to surcharges imposed on competitors.
Responding to Speednet’s statement, PM Briceño said, “I don’t think it was a threat,” he said.
Briceño said that competition must be maintained. “What the PUC was doing in their deliberation and consultations, they did what the court had been saying, BTL is a dominant operator and as such they had to do that, to declare that.”
When asked whether he would push BTL to seek repeal of the Statutory Instrument declaring BTL a dominant operator, Briceño turned the question back on unions’ own demands. “You all have been saying you don’t want prices to go up… BTL is a dominant operator and as such they had to do that.”
Meanwhile, on concerns Speednet could undercut BTL on price, Briceño said the SI only restricts increases. “What the SI says is that they cannot raise their prices, but of course a company can reduce its prices.”
