Turks and Caicos Islands Government Writes Off $3.1Million In Fees For PTV

Turks and Caicos Islands Government (TCIG) has written off $3.1million in fees that local television station PTV owed the Telecommunications Commission.

On December 12, 2022, the write-off was approved by the House of Assembly, five days after PTV’s managing director, Peter Stubbs informed customers that the company would cease operations as of December 31st “to allow us time to concentrate on modernizing, restructuring, rebranding, and rebuilding.”

Minister of Home Affairs and Telecommunications Otis Morris said the write-off included $3,086, 147.00 (three million, 86 thousand, 147 dollars) being 90 percent of the amount which PTV’s parent company Andrews
Communications Ltd. (ACL) owed the Telecommunications Commission for telecommunications network licence fess and the amount of $104, 647 owed for outstanding regulatory fees.

Morris said Cabinet agreed to the write off 90 percent of the arrears and send a bill to PTV for $342, 000, which is 10 percent of the outstanding amount owed, and which is to be paid over seven years. The write-off was done under Section 52 (1) of the Public Finance Management Ordinance.

Morris explained that Andrews Communication Ltd. was issued a telecommunication network and spectrum licence on May 12th, 2006, for 15 years, and the telecommunications portion of the licence required them to pay licence fees as well as regulatory fees under the telecommunications ordinance.

He said the initial telecommunications network licence fee of $250,000 for 2006 to 2007 was reduced to $150,000. From the 2008 to 2009 financial year to 2020 to 2021 financial year, PTV was required to pay $250,000 per year or seven percent of gross revenue, whichever was greater, for the telecommunications network licence.

However, the minister said, to date Andrews Communications has not paid such licence fees, resulting in the company owing the telecommunications commission $3.4million in unpaid telecommunications network licence fees.
According to Morris, regulatory fees of $150,000 for the year 2006 to 2007 financial year were reduced by 50 percent, resulting in a fee of $75,000 which was paid. The regulatory fees for the year 2007 to 2008 financial year was $139,000, out of which $35,000 was paid, leaving an unpaid balance of $104, 000.

The minister added that for the 2008 to 2009 financial year, the fees were set at $75,000 which were not paid and the telecommunications commission wrote-off the collection of regulatory fees for 2008 to 2009 through to May 2012 due to a Supreme Court ruling.

“The commission also stopped charging ACL the regulatory fees and the commission agreed to, among other things, grant ACL a limited internet network licence and any other category internet service provider licence identified within the telecommunications fees structure regulations and a spectrum licence required by ACL to deliver over the internet service to the public,” Morris added.

The home affairs minister noted that this issue with PTV and outstanding fees has been “lingering around” for around 16 years.

“I am elated to be able to stand here in this House and bring this motion to bring this issue to an end,” Morris said. “The founder of ACL, the late Peter Stubbs, he fought his life on this issue. This is long overdue and it is gratifying to be able to do it. We will not make any apologies for writing off something like this for local businesses.”

Premier Washingotn Misick, who supported the write-off, said the matter of PTV’s outstanding fees was “a legacy issue that has covered the life span of a number of governments” including the former Dr. Rufus Ewing and Sharlene Cartwright-Robinson administrations.

“This is a crisis situation, not only for PTV but for those people who depend on PTV programming for their entertainment,” the premier said.

“This move today is the right one. Not everything can be measured in dollars and cents. We’ve already written off hundreds of millions of dollars and continue to spend money in some cases where there’s no economic value to it.”

“Some things we have to have a qualitative measurement and this is one of these things, so I am proud and happy that we are able to write off this debt for PTV. This is the first step in a conversation in which we have to look holistically at the industry. I’m happy that the government could assist because it’s not my money and it’s not the leader of the opposition’s money.

Any write-off is a gift back to the people of the islands whose money it is, so we have to see it as a qualitative gift back to the people of the islands by helping industries that may negatively impact local business more than outside interest. I think it’s the right thing to do,” Premier Misick added.

The premier said that because of the advance in technology and the size of the market, there are going to be situations sometimes where some businesses are not going to be competitive.

“But at the end of the day, we want to do everything we can to save businesses, but I don’t think any government is ever going to be in a situation where you can save every business. Some businesses and some industries are too big to fail. The impact this will have on society behooves the government to ensure that certain industries should not be allowed to fail,” Misick added.

The premier said that in order to make progress, changes have to take place and this has been evident across the telecommunications landscape.
“What used to be new technology is now old technology today and at the end of the day there is something called economies of scale. The situation with PTV is that because of the restriction with their licence they have not been able to package television service with the offering of internet and everything else that the other telecommunications operators are offering,” he added.

“The write-off of this debut will put them in a position where it will make it a lot easier for them to be able to find partners, he granting of the necessary licence to be able to compete in the space will also give them a fresh start.
“This move is part and parcel of a strategic plan of this government to bring more competition in the space, but critically, to give PTV an opportunity to reach its target market which are in the other islands and where PTV is already in the TV space offering that service in North and Middle Caicos.”
Opposition Leader Eddie Astwood supported the write off and suggested there could be a merger between the government-owned Radio Turks and Caicos and PTV.

“We have heard in recent news that PTV may be closing. That is sad to hear. This write-off is important, and I support it 100 percent, but I do wonder if there was any consideration given to any partnership to save this company form going under or closing down,” he said. “I do believe this is a golden opportunity for TCIG and PTV to consider a partnership, save the company, improve RTC and get it to where we want it to be.”