By Aaron Humes: The Belize Chamber of Commerce and Industry (BCCI) has issued a statement expressing serious concerns regarding the potential acquisition of Speednet/SMART by Belize Telemedia Limited (BTL). This anticipated transaction, they argue, could significantly alter the telecommunications landscape in Belize and have far-reaching implications for consumer welfare, business competitiveness, public fund management, and the health of the digital economy.
In their statement, the BCCI acknowledged the theoretical advantages of consolidation within a small market, such as potential efficiencies and increased investment capacity. However, they characterized the existing legal framework and absence of critical safeguards as a barrier to supporting the transaction at this time.
The Chamber outlined several primary concerns, including:
Transparency Deficits: BTL’s status as a publicly listed entity contrasts starkly with Speednet’s private ownership, leading to a lack of disclosed beneficial ownership. This impedes public assessment of the transaction’s fairness and true motivations. The BCCI emphasized that, as a national asset, any acquisition of this type should involve thorough consultations with shareholders and civil society.
Perceived Conflicts of Interest: Ownership ties between Speednet and politically exposed individuals raise concerns about conflicts of interest that could undermine public trust and question the transaction’s alignment with broader public interests.
Risk to Public Funds: The Chamber cited historical precedents suggesting that public resources, especially from the Social Security Board, might be at risk to support such an acquisition without adequate investigation, transparency, or parliamentary oversight. Considering BTL’s shareholder position, the acquisition’s risks could adversely affect social security benefits.
Consumer & Business Impact: Without robust safeguards, market consolidation poses a threat of monopolistic behavior, leading to potential price increases, decreased service quality, less innovation, and reduced negotiating power for consumers and businesses.
Given these concerns, the BCCI articulated a firm stance against any movement toward consolidation unless comprehensive competition and merger control legislation is first established. They urged Belize to implement a contemporary legal and regulatory framework similar to those in Jamaica and Trinidad and Tobago, allowing for thorough evaluation and regulation of dominant providers.
The BCCI called for essential prerequisites to be met for any potential transaction, including:
– Full disclosure of all parties’ beneficial ownership.
– An independent valuation by recognized experts.
– A transparent public consultation process.
– Binding commitments on pricing, service quality, and infrastructure sharing.
– Protection of public pension funds from unapproved exposure.
The Chamber is urging the Belize government and stakeholders to pause any steps towards consolidation until this legislation is drafted and enacted. According to them, only then can a fair evaluation of the proposed merger occur, ensuring that the transaction operates transparently and in the best interests of Belizean citizens.
The BCCI expressed readiness to work collaboratively with the government, stakeholders, and experts to lay down this crucial legislative groundwork, emphasizing its commitment to fair competition, consumer protection, and the responsible management of public resources.
The post Chamber of Commerce warns on safeguarding competition as telecommunications market plans coalition appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Aaron Humes: The Belize Chamber of Commerce and Industry (BCCI) has issued a statement expressing serious concerns regarding the potential acquisition of Speednet/SMART by Belize Telemedia Limited (BTL). This anticipated transaction, they argue, could significantly alter the telecommunications landscape in Belize and have far-reaching implications for consumer welfare, business competitiveness, public fund management, and
The post Chamber of Commerce warns on safeguarding competition as telecommunications market plans coalition appeared first on Belize News and Opinion on www.breakingbelizenews.com.
