This article views market liberalism as a threat to vital state owned resources especially when resources such as telecommunication, water, electricity and other utilities essential for sustainable development are sold.
And as such cannot be left to the profiteering motif of market practices to the exclusion of the population.
As an Antiguan, I have a passionate desire to see the empowerment of more Caribbean people, in developing agriculture, controlling shipping lines, airlines, hotels and information technology.
Why can we not deliberate with China and Korea and build our own cruise line and integrate agriculture as a source of development?
We can position our airlines and create a significant revenue from that market; and not only act as a feeder to others.
It is time for the Caribbean to become a major player within the industry and prohibit others from exploiting our resources, polluting our waters with effluent and our air with carbon emissions.
But Caribbean politicians have failed to assert their power. From the days of slavery up until now our politicians are still subservient to that culture.
Our sovereignty has been taken over by multilateral organization and Caribbean politicians are no longer accountable to the constituents.
Nothing has changed from the head tax to cap in hand mentality, we still beg for our survival, while others export our capital , leaving the region much poorer.
This mentality expresses itself once more with the APUA crisis and the United Progressive Party (UPP) Government of Prime Minister Baldwin Spencer's liberalization policy currently on the table.
If the debate in Parliament fails to stop the Antigua Telecom Act towards liberalizations, the streets will once again become the theater of power.
Antigua Public Utilities Authority (APUA) Liberalization
The liberalization of APUA telecommunications sector is not in the public interest; and Antigua's government complicity is evidently against the welfare of Antigua and Barbuda.
The victims are the masses, and the business interest the beneficiaries, that is clear.
In the name of so called economic efficiency, and in the case of private rip off.
Antigua and Barbuda's asset should be controlled and supplied by the government to ensure: availability, reliability, and affordability.
The proposed liberalization policy will be a dilemma for APUA: job losses,surging utility and water cost and obliteration of APUAs statutory body.
Why should Antigua and Brabuda follow the same trade policy regime and trade preferences essentially to benefit the rich!
As a small developing country, Antigua cannot give away its vital interest of telecommunication to the plunderous robber baron of underdevelopment and nations past demise.
Though there maybe a conspiracy to devalue Antigua and Barbuda's assets, an excerpt from 'Telecommunications in the Caribbean' by Felipe Noguera revise the public value:
"Although the Caribbean is not a populous or rich region it is nonetheless a major telecom market. Indeed, parts of it have telecom infrastructures, as advanced as any in the world"
Antigua government should pass legislation that public assets should never be sold. This was done with water privitisation in Uruguay when more than 62% of the population supported a constitution to guarantee that water remain a public good.
Early in 2005 Minister of Information Communication and Technology (ICT) Dr. Edward Mansoor discussed a draft policy on liberalization: 'The Draft National ICT Policy on the full Liberalization of the Telecom Market'
-End Cable and Wireless monopoly by December 31, 2005
-Interconnection
-Competition Regulation
-Universal Device Access
But Dr. Mansoor should know know that interconnection will only benefit new entrants and undermine APUAs profitability.
He should also be aware that privitisation consistently follows liberalization.
The proposed Antigua Telecom Act is a dishonorable legislation that should be stopped, otherwise it will further impoverish the community and the rising crisis of crime will worsen.
Though Antigua Telecom Act of 1951 maybe archaic, the US Telecom Act of 1934 was also ancient until it was amended in 1996, and it was only after 62 years that US Telecommunications was liberalized.
United States and European Union (EU) Liberalization
On February 8, 1996 the US Telecom Reform Act effect interconnection in the U.S.A.
Subsequently 1988 was the year when the EU first summoned member states to liberalize and privatize the telecom sector; and that was accomplished on January 1, 1998...10 years later!
However before the EU market was liberalized there were several public discussions, an EU 'Green Paper' on liberalization was circulated and extensively debated.
As a consequence of EU liberalization more than 250,000 jobs were lost.
Jamaica Liberalization - An Equity Difference
In the Caribbean, Jamaica Telcom
liberalization was swift - a 3 phase telecom reform from 1999-2002; and the free market policy was finalized by March 1, 2003.
But APUA is State Owned Enterprise (SOE) and cannot be compared to Jamaica's zero equity.
Jamaica's ownership of their telecommunications moved from 80% in 1987 to 0 equity by 1990; and that was due to the country's economic difficulty from the 1970s to 1990s under IMFs SAPs.
And IMF conditionalies of SAPs allowed Cable and Wireless to purchase the Government of Jamaica shares for US$84 million in 1989/1990.
The British Transnational- Cable and Wireless capitalize on Jamaica's economic dilemma; and increased their holdings from 9 % to 79% of the sector.
APUAs Interest At Stake
Because there are too many lobbyist working against APUAs interest; and Mr. Delreo Newman, Antigua and Barbuda's government ICT consultant is cloak and dagger operative with his statement:
"The anti-telecom reform position adopted by APUA seeks to deprive the people of Antigua and Barbuda their right to the best and latest technology"
A similar agrumentand declaration of distrust emphasized by Dr. Mansoor was obvious:
"However, in this globally competitive environment, universal service can no longer be left to APUA to determine, the responsibility now rests with the regulator in conjunction with government"
From Dr. Mansoor's statement people would presume Antigua and Barbuda's Telecom Act was passed.
Why should Dr. Mansoor be Antigua and Barbuda's independent regulator?
Fair Antigua and Barbuda definitely has much to fear if that Telcom Act is passed!
APUA Open Market And Value
Although Antigua and Barbuda's telecommunication is not liberalized by legislation as yet, the Antigua market is much more open to full competition than Trinidad and Tobago,Belize, and Guyana where monopoly is far greater.
And this is according to the International Communications Union (ITU) level of competition submitted by countries.
Additionally Antigua and Barbuda is ranked in the upper average (28 economies) ranking number 2 with a skill average of 123.8, ICT-01, Value 244.92 and average growth 2001-2005 of 92.72.
Barbados is the only other Caribbean country ahead of Antigua and Barbuda - ranked in the high average (29 economies) ranking number 25.
There is much value to Antigua and Barbuda's ICT, and APUA was a contributor of that development.
Private Interest Manipulation
APUA is fully owned by the people of Antigua and Barbuda; and if private interest is driving the political process of liberalization to further empower the oligarchy a revolt maybe forthcoming.
Even developed countries recognize that the system can be manipulated and ' training people to prevent wily telecommunication companies from manipulating the system will not be easy'
Is there justifiable proof of manipulation?
Probably as a developing country, Antigua and Barbuda's policy makers need to address the critical elements of liberalization and the dreadful consequences that will follow.
Liberalization Is About Money
What interest surrounds liberalization?
Money..money...money, and APUAs eventual demise.
The economic interest and current world market for telecom is estimated at more than US$513 billion and the worth of the global information industry is at least $1.3 trillion.
It is predicted to grow to over $1.5 trillion by 2010 according to Insight Research Corporation (Tuesday, October 24, 2007)
But the figures are disputable since total telecommunications revenue in International Markets rose 11.4% in 2005 to reach $1.8 trillion and $2 trillion in 2006, according to Telecommunications Industry Association (TIA) 2006 Telecommunications Market Review and Forecast.
There is expectation of a projected increase to $2.7 trillion by 2009.
Also according to Canada Business Online, October 23, 2007 the 3Q income of AT&T the nations largest communications company net profit was US$3.1 billion a 42% increase from the previous year.
Voice Of Internet Protocol (VOIP) Growing Market
In a recent report by ITU entitled "The Voice of Internet Protocol (VOIP) World 2006"
The documents cites establish operators fear and consequences of competition and resultant loss of the PSTN revenue.
And the 2008 Insight Market Research Agenda agrees with that analysis in their report 'The Future of Telecommunications 2008-2013'
It is an indisputable fact according to the report:: "The PSTN is moribund and IP networks are taking over, on a global basis mobile communications is preferred trade of connecting people and information"
And it was documented by the Caribbean Regional Negotiating Machinery (CRNM) that the Caribbean which has 40 million residents account for 12.11 million mobile users.
Liberalization vs APUA Security
If the market is to be liberalized as planned is this not a threat to APUAs existence and revenue earnings?
The Antigua government ICT consultant is playing with APUAs interest; and the government is apparently supportive in clearing the way for new market entrants.
Who will get no seed and who has more to loose than APUA?
The amendment of the Antigua Telecom Act of 2003 safeguarded APUAs VOIP interest, but will eventually have to be adjusted if APUA is to take advantage of VOIP demand.
Other governments use similar measure of protection, the Government of Panama impose a 12% surcharge and disallowed Internet cafes from providing the service.
The liberalisation agenda must be stopped, long term assets must not be sacrificed for short term gains.
VOIP Growing Demand
There is no doubt VOIP is progressing rapidly, and APUAs revenue loss maybe significant- Jordan Telecom losses exceeded $10 million in 2001.
VOIP rapidly moved from an estimated 11.5 million subscribers in March 2005 to over 50 million in 2007; and it is expected to increase to 250 million by 2011.
The US VOIP consumer lines soared from 6.5 million in mid-2006 to 11.8 million by 2Q of 2007, and is expected to increase to 23.3 million by 2011 according to tTelegeography's US VOIP Research Service.
Additionally in Europe VOIP moved from 6.5 million in 2006 to 30 million consumer lines in 2007.
Why would Antigua a small vulnerable country with limited resources liberalize its Telecom Service?
Prime Minister Baldwin Spencer Indecisive
It is doubtful this is what Prime Minister Baldwin Spencer really wants, but there is an influential triad operating within the government.
It is possible, PM Baldwin Spencer, is battling elite parliamentarians disloyalty and non observance of ethics, but a resolution is necessary and some ruthlessness needs to be applied..
APUA loss will be significant in revenue, and jobs loss estimated at 500 of 875 workers.
The revenue belonging to APUA will be assigned to the new market entrants leaving Antigua's treasury much poorer.
Digicel Arrival And Conflict
The advent of Digicel in the Caribbean was an opportunity for its founder Dennis O'Brien after he sold his Irish Company Digifone for US$2.5 billion.
Today's presence of Digicel is a worrisome sign, and the company should not be profiteers of Antigua's assets.
It is likely with Digicel's marketing intillegence and sophisticated technology APUA cant survive.
A contentious issue is still brewing in other markets concerning Digicel and the Government of Papua New Guinea : Telekom PNG vs Digicel Pacific; and the major problem - interconnection.
The eminent Australian law firm Freehills representing the Papua New Guinea Government anticipates a collapse of Telekom PNG from open competition that would undermine the financial viability of Telekom PNG: "If left to the mercies of open competition from foreign-owned mobile phone companies"
And insist the PNG Government owned telecommunication company Telekom PNG "needed breathing space to be revitalised at both management and operational level"
The Antigua and Barbuda Government needs to be vigilant with the peoples asset .
If a thorough and in-depth assessment is not done to stabilize APUAs interest, the devastation of Antigua and Barbuda's assets will plunge the economy in further deficit and chaos
Kwame Nkosi Romeo
aka Bombshell Romeo
