The BTL-Speednet deal is dead, but former PUC Chairman John Avery says BTL could still pay the price. With the company’s rates frozen for three years, Avery argues that its competitors can now undercut its prices and gain the upper hand. He has called the proposed acquisition illegal from the start. Today, he explained why he believes the PUC’s decision has left BTL at a disadvantage.
John Avery
John Avery, Former Chairman, PUC
“The thing is PUC has already declared BTL a dominant provider. Nothing has changed so BTL is still a dominant provider. However they passed this SI saying BTL cannot change its rates for three years, which now means that BTL is in a precarious position, because if other licensees were to start lowering their rates this SI prevents BTL from doing the same. So that has placed BTL in a position where it is unable to really compete if the other players in the market decide that BTL is vulnerable and we can make some inroads in their costumer base. Beyond that, declaring BTL dominant, what it suggest is that BTL now falls under greater scrutiny from the PUC as it relates to rates. Otherwise, the law says let the market determine the rates.”
Former PUC Chairman Rejects BTL Price Controls
With the BTL-Speednet acquisition off the table, should BTL still be forced to keep its rates unchanged for three years? Former PUC Chairman John Avery says no. He believes the company should lobby the Public Utilities Commission to repeal the measure, arguing that regulators should not be setting prices in the first place.
John Avery
John Avery, Former Chairman, PUC
“So what has happened is that every rate or every new package or every new thing that BTL wants to offer, it needs to go to the PUC for approval. So that even affects BTL in the speed in which it can adjust in market conditions.”
Paul Lopez
“So was it perhaps a misstep from the PUC or justified at the time?”
John Avery
“For me it was never justified. I felt from the time this thing started with this dominant provider determination it was simply to allay fears that people had that if you create a monopoly that the monopoly would price gouge. Now in my opinion what PUC needs to do is to repeal that SI, because that SI in itself goes against what the law says about a dominant provider. So the law, the telecom act says the dominant provider needs to be able to adjust. The SI says no the rates are fixed for three years. So as it is that SI under the current condition violates the act itself. So the PUC needs to repeal that SI. BTL needs to lobby the PUC to do it.”
Avery says a standard formula for reviewing BTL’s rates would better support competition.
Attention readers: This online newscast is a direct transcript of our evening television broadcast. When speakers use Kriol, we have carefully rendered their words using a standard spelling system.
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