Regulator considers fining Flow over delays on cell tower-sharing

The telecom regulator has issued an enforcement notice to Flow and is considering fining the company $400,000 following a dispute over sharing its cell towers with competitor Logic.

The Utility Regulation and Competition Office, often known as URCO or OfReg, in a statement released on 24 Dec., said the action comes after an investigation into the handling by Flow of Logic’s requests to install its mobile network equipment on six of Flow’s communications towers across Grand Cayman and Cayman Brac.

The investigation found that Logic, on 8 Dec. 2021, requested access to Flow’s Lower Valley and South Side Bluff towers, and then on 4 April 2022 asked for access to the towers at Salt Creek, West Bay Road; Morritt’s, East End; Lions Centre, Red Bay; Masons Lodge, Prospect; and Northwest Point, West Bay. Logic provided a $2,000 non-refundable deposit to Flow for each.

URCO said the enforcement and proposed fine notices, which were issued earlier this week, relate to non-compliance with the ICTA (Interconnection and Infrastructure Sharing) Regulations, which outline time limits for responses to requests.

The regulator, in its enforcement notice, noted that following both requests from Logic, there had been repeated delays in responses from Flow. It noted that there were delays totalling 184 days in relation to the Lower Valley and Brac towers; a 172-day delay in the Northwest Point request; and a 150-day delay to the request relating to the other sites.

Possible $400,000 fine

“Consequently, URCO is considering the imposition of an administrative fine of $400,000, subject to Flow’s right to respond, and the Office’s consideration of those representations before any final determination is made,” the regulator said.

It said that it had launched its investigation after becoming aware of “delays and procedural concerns” relating to how Flow handled Logic’s requests to access Flow’s communication towers, as Logic is allowed to do under the ICTA Act.

“The investigation examined whether both licensees complied with applicable legislation, regulations, and licence obligations governing infrastructure sharing,” URCO said.

During the investigation, the regulator said, it requested and reviewed information from both parties and held multiple meetings with each licensee.

It issued a final determination on the dispute in January this year. URCO said, following that determination, it has now issued the enforcement and proposed fining notices to Flow.

The regulator said its preliminary findings indicate concerns over “excessive delays, thus failing to meet regulatory timelines, negotiation processes, and Flow’s apparent lack of access to information on its own infrastructure necessary to allow it to materially respond to legal infrastructure sharing requests”.

It said URCO was applying the regulatory framework “consistently and transparently, with the ultimate aim of promoting effective competition for the benefit of all consumers, while ensuring that all licensees operate on a level playing field”.

The Compass has reached out to Flow for a response.