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Tonight, Smart phone users cannot make international long distance calls. And it’s because BTL has terminated that phone company’s use of what’s called an E1 service – which is basically a chunk of internet bandwidth that Smart was leasing from BTL to allow its customers to make cheap long distance calls using, or voice over internet. A lot of it is technical, but the bottom line is that Smart is crying foul – they say that the government controlled BTL just isn’t playing fair, and BTL is saying that the Smart is only now facing genuine competition.

Belize Telemedia gave Smart’s parent company, Speednet, notice of its intention to pull the plug a week ago and so today as promised Telemedia disconnected Smart’s unfiltered access to its E-1. That cut Smart’s 90,000 subscribers off from making or receiving international calls. Senior managers at Smart met with the Public Utilities Commission this morning and in a late breaking development, PUC Chairman John Avery is asking BTL to restore Smart’s access to the international circuits.

It is a consequential development but we begin tonight with both sides of the story. We spoke to the Executive Chairman of BTL Net Vasquez and Smart’s Chief Executive Officer Ernesto Torres.

Ernesto Torres, Chief Executive Officer – SMART
“Telemedia pulled the plug this morning on our international circuits which control both our inbound and outbound. I can’t say what time but I believe it was between nine and ten this morning or thereabout.”

Nestor Vasquez, Executive Chairman - BTL
“What we have terminated is the unfiltered fibre link that they had. They used that in ways that allowed them to undercut our rates for international calls. They passed all their outgoing calls on that and we have noticed that they can do that only because it is an unfiltered fibre link that they get from us. BTL can no longer subsidize Speednet in their telecommunication business. We can no longer continue to take losses on facilities that we provide to them. That is the reason why.”

Ernesto Torres,
“When we received the letter, we went back and said okay, if you are pricing it below cost, what is the price you are asking for, give us a quotation then for the price you would like and we never got a reply.”

Keith Swift,
“Did you accept then, because you were willing to renegotiate so do you accept that the arrangement was unfair or imbalanced?”

Ernesto Torres,
“No because we don’t know what Telemedia, in fact cost for international lease circuits are far below the price that we were paying. So I don’t see how that can be the case. And even if you feel that you are not being appropriately being compensated for it, don’t disconnect the circuit and then say I am being underpaid for circuit. Just simply say, listen, why can’t you give me a quotation for what you believe is the true price for it. You don’t behave in that manner.”

Nestor Vasquez,
“There are alternative ways in which they can put through their calls. Right now their incoming calls come through our gateway switch. They can pass all their outgoing calls through the same gateway switch. Why don’t they do that? But then they would have to pay the proper price for it. They will have to pay adequately to get that service. I repeat, their incoming come through our gateway, well their outgoing can go through our gateway but let’s pay the right price.”

Ernesto Torres,
“We are pursuing other alternatives but the time frame is too short. You gave the company only four working days. That is the issue.”

Keith Swift,
“What’s the solution?”

Ernesto Torres,
“To me the long term solution is for Telemedia to grant Speednet direct access to ARCOS. That solves the problem once and for all and they are compensated and Speednet has written to Telemedia asking for a direct access because that solves the whole problem.”

Keith Swift,
“They say they want access to ARCOS.”

Nestor Vasquez,
“Well I notice that they have been copying their letters to the PUC and to everyone, let them pursue that line, let’s see what the PUC says about that.”

Keith Swift,
“So what if they don’t open ARCOS?”

Ernesto Torres,
“If they don’t then we need to go and find a more permanent solution because right now what we are looking for is sourcing bandwidth for us to make sure that our customers get their service by Sunday. Now if that bandwidth can remain available on a long term and surprisingly if that cost turns out to be less than what we were paying Telemedia then the argument falls apart.

I think Telemedia has acted in a very very abusive manner, taking advantage of its dominance in the market. Prior owners of Telemedia have negotiated these agreements because they found certain things weren’t to their liking, we renegotiated. I can’t see why these can’t be renegotiated again. If they find that there is something unacceptable, sit down and negotiate them again. That’s what the previous owners of Telemedia did.”

Nestor Vasquez,
“They are getting away with murder and it is time for us to end that. If they want to talk business, look there are four agreements that were signed years ago. Put all those four agreements on the table and with the new owners let’s look at all of them. They want to talk serious business, let’s talk serious business. That is the proper thing to do.”

Ernesto Torres says that Smart is sourcing other options for bandwidth and expects to restore its international access by Sunday. But as we told you at the top, the Public Utilities Commission has intervened and in a letter late this evening Chairman John Avery has advised BTL that it is, “prudent for BTL to continue to provide the relevant services to Speednet.” That we note is a suggestion, not a directive.

The PUC has requested that both companies to submit all written agreements to the PUC by 5 pm on Monday. The PUC says it will review the agreements and will then issue instructions on how both parties can renegotiate the agreements if necessary. If changes aren’t necessary, the PUC will, instruct both parties to continue honouring the agreement. Interestingly the PUC writes that many of the existing agreements are illegal since they weren’t submitted to the PUC for approval before they were signed. So that is where it stands tonight – the PUC has, at best, urged BTL to reconnect Smart until the issue can be worked out.

We should note that the Chamber of Commerce chimed in today - appealing to the PUC to intervene because the disconnection of international access to Smart customers would be detrimental. BTL’s Chief Operating Officer Karen Bevans replied to the Chamber today calling the letter to the PUC discourteous since the Chamber failed to contact BTL, a member of the Chamber, prior to writing the PUC.