Belize PUC – New Class Licenses Approved

The PUC has issued a total of 25 Telecommunications Class Licenses since 2003, and 5 since the PUC took on the VoIP issue. It is unclear whether any of these new licensees plans to compete on VoIP services. If you own or represent any of these organizations, please email BFIC (bficmail [at] gmail [dot] com) and give us an idea when we can drop BTL or at least legally use a Belize-owned VoIP service.

Here is the full list from the PUC website:

http://www.puc.bz/publications/class%20licensees.doc

See the full list by clicking this link:

VoIPNews (AUS) – VoIP Block Frustrates Users IN UAE

Original Story:

http://www.voipnews.com.au/content/view/1241/113/

VoIP users in the United Arab Emirates have been fighting a running battle with telco’s as restrictive practices are cutting them off from IP Telecommunications services.

According to this story, the latest round of restrictions appear to block SIP traffic using packet filter technology, whereas in the past port blocking had been used. Port blocking is relatively easy to avoid as it’s easy to change ports at the client end, but packet filtering (except with Skype) is a relatively easy and permanent block to data transfer.

Skype is a little harder to detect and therefore block in the network, but there are solutions emerging which would let countries, or organisations effectively block Skype if they put their mind to it.

The irony is that the incumbent telco, Etisalat, is actually a heavy IP Telephony user itself relaying as much as 40% of it international calls across VoIP gateways according to the source.

It’s perhaps easier to understand when taken in context that is rumoured to be working on its own consumer VoIP service.
Etisalat which is also the major broadband provider initially blocked access to the Skype website which meant users could download or upgrade versions of the client, nor could not buy credit.

GigaOM – Gizmo Goes Business Class

As long the person you are calling is a registered Gizmo user, you can call any of their lines (PSTN, mobile, Gizmo, etc) for FREE in 60 countries worldwide. Gizmo works just like Skype and actually works better than Skype through your VPN du jour.

Original Story:

http://voip.gigaom.com/2006/09/18/gizmo-goes-business-class/

SIPphone, the company behind Gizmo Project says it is extending its All Calls Free calling plan to business users world wide. The company is especially targeting the small to mid-sized companies. The way it works, is that those who want to make phone calls have to ensure that the receiving party is also a Gizmo user, and if their PC client is disconnected, then the calls can be forward to their mobile/landline numbers linked to their Gizmo identity. There are many business specific features that come with this offering. I might review it later this week, and post the full review on Web Worker Daily.

The new offer of course, comes with free PC-to-PC calling, which is nothing special, and quite common place. It also allows free calling between companies that use the Asterisk PBX software. There a lot of companies selling pre-configured Asterisk PBXs including Digium which launched an Asterisk appliance last week. SIPphone makes money by selling long distance minutes, and is betting that if more people switch to these open source VoIP platforms, they will use it as a way to reach the PSTN/Mobile phones.

Amandala – $30 million still in dispute at BTL

Original Story:

http://amandala.com.bz/index.php?story=1711&PHPSESSID=03a001c03e62ffa8d1583844cdf40464

BTL says GOB will forgo $5.9 million in taxes for Intelco transaction of “no value”

With continued growth in its cellular base, the Belize Telecommunications Limited (BTL) is boasting another year of record revenues—a hefty $132 million—for the financial year ending March 31, 2006. The books read pretty on the surface, but a more detailed look at the financials will reveal two major issues that have purportedly left the company and its shareholders over $30 million short. Even with this loss, though, the company is this year boasting $26 million in profits.

Appearing visibly again on the books of BTL are the missing millions—the BZ$6.232 million reported last year, and a further BZ$1.4 million reported in this year’s financials, which were allegedly swindled from the company in dubious parallel market exchanges for US dollars.

As the report indicates, “The former Head of Finance [Gaspar Aguilar] reported that despite representations from sources that the US$ would be delivered in exchange, no such US$ were received by the company.”

The Financial Intelligence Unit (FIU) and the police were called upon to investigate the matter and interestingly enough, the former director of the FIU, Keith Arnold, who also chaired BTL, resigned from the FIU, but has since remained BTL’s chairman. Authorities have failed to bring closure on the missing millions at BTL.

Apart from the still missing millions is the $23.357 million, which BTL’s present directors say Innovative Communication Corporation owes BTL. The financials detail that this money was spent for Intelco-related transactions and BTL is insisting that Prossers’s ICC pay. The dividends owed to ICC’s subsidiary, Belize Telecom (BT), have been held to set off this claimed debt, says this year’s financial report. But the amount deducted is a mere $285,000, which reduced the total claimed just a notch, from $23.642 million to $23.357 million.

What is most striking in the report is that BTL is claiming a credit of BZ$5,877,866.30 from the Government of Belize, which, it asserts, is due for an Alliance Bank loan for “the purchase of Intelco assets.” But the present directors further claim that, “…no value was obtained by the Company.”

Reporter – BTL’s $5.8M tax write-off: Another can of worms for Musa

Original Story:

http://www.reporter.bz/index.php?option=content&task=view&id=1411&Itemid=2

An agreement signed between government minister Ralph Fonseca and American businessman Jeffrey Prosser in July 2004 has left taxpayers picking up the tab for $5.8 million.

Reporter investigation has revealed Fonseca, on July 29, 2004, signed an agreement with Prosser, to cover Prosser’s loan with the Alliance Bank of Belize.

Prosser secured the loan when he was Chairman of the telecommunications giant, B.T.L., and B.T.L. has been obliged to pay it back.

Now government has agreed to compensate B.T.L. for this by allowing it to deduct the amount of $5.8 million from taxes owed.

Government in April 2004 handed majority control of B.T.L. to Prosser on a platter, after he promised to pay the government some U.S. $52 million for the majority shares in B.T.L. on the strength of a promissory note.

After securing majority control of B.T.L., Prosser secured the $5.8 million loan from the bank and used the money to pay off an Intelco loan which had been guaranteed by the Social Security Board as part of the securitisation programme with the Royal Bank of Trinidad and Tobago.

The Intelco deal did not materialise and now B.T.L., wants its money back.

The startling revelation of the $5.8 million tax write-off is reflected in the B.T.L’ 2006 financial report, which acknowledges “the Government of Belize has agreed to re-imburse the company (B.T.L.) for a total of $5,87,866.

This amount, says B.T.L’s financial statement, covers a significant portion of the principal and interest related to the Alliance Bank loan secured by B.T.L.

In a report to its directors B.T.L. explains the money was used for the purchase of “Intelco assets, which have now been paid by B.T.L. to the Alliance Bank Limited.”

“Such sum,” the telephone company says, “shall constitute a credit for present or future taxes due and owing by B.T.L.”

US House Of Reps – Working On A Bill To Protect US Businesses From “Repression By Authoritarian Foreign Governments”

Hmmm, very interesting for VoIP blocking nations, especially those who HEAVILY rely on US exports, aid and tourism business.

Bill: H.R.4780 : To promote freedom of expression on the Internet, to protect United States businesses from coercion to participate in repression by authoritarian foreign governments, and for other purposes.
Sponsor: Rep Smith, Christopher H. [NJ-4] (introduced 2/16/2006) Cosponsors (14)
Committees: House International Relations; House Energy and Commerce
Latest Major Action: 6/22/2006 House committee/subcommittee actions. Status: Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote .

As part of the bill, Congress would make various findings, including:

• “Freedom of speech and freedom of the press are fundamental human rights, and free use of the Internet is protected in Article 19 of the Universal Declaration of Human rights, which guarantees freedom ‘to receive and impart information and ideas through any media regardless of frontiers’”;

• “The Internet has been a success because it quickly provides information to its more than 972 million users globally”;

• “The growth of the Internet and other information technologies can be a force for democratic change if the information is not subject to political censorship”; and

• “Political censorship of the Internet degrades the quality of that service and ultimately threatens the integrity and viability of the industry itself, both in the United States and abroad.”

The bill provides the following statement of policy for the United States to:

• “Promote the ability of all to access and contribute information, ideas and knowledge via the Internet, and to advance the right to receive and impart information and ideas through any media regardless of frontiers as a fundamental component of United States foreign policy”;

• “Use all instruments of United States influence, including diplomacy, trade policy and export control, to support, promote and strengthen principles, practices and values that promote the free flow of information”; and

• “Prohibit any United States business from cooperating with officials of Internet-restricting countries in effecting political censorship of online content.”

Channel 7 – Record Profits for BTL

Last year, BTL made $1.9 million in profits, that was an all time low. But this year, the company has rebounded most impressively with a 1,300% increase in its net and it has mostly cell phone users to thank.

The company’s financial statements show that it was another record year in gross earnings, which came in at $132 million, two million more than last year. But last year, despite solid earnings, the company’s net profits were sapped when it had to write off $27 million in bad debts mostly related to Jeffrey Prosser’s troubled tenure.

Well, with those Prosser debts out of the way, the net profit is back to a robust $23.1 million. BTL’s shareholders will benefit the most as the company will declare a 50 cent dividend per share which is a 25% return on the original investment.

Those who will benefit most from that are Jeffrey Prosser who owns 30% and Michael Ashcroft who controls 62%. Of course, it’s a mixed reward for Prosser because, if past events are any way to predict the future, the Ashcroft controlled BTL will simply scoop up Prosser’s dividend earnings and use them to pay his still massive debt to the company.

And if you’re wondering where the average phone user gets into all this… Well BTL reports that the number of customers on its GSM Cellular Network increased by 29%, to a total of ninety three thousand users. Add that to the ten thousand still using the analog service and BTL has one hundred and three thousand cell phone subscribers. Sales of pre-paid cards increased by four point five million dollars. But as cellular usage increases, fixed lines diminish, and the company reports that over the past two years, revenue from post paid lines has fallen by 32%.

And, you’ll be glad to know that as taxpayer, you’re doing you’re part in contributing to the record earnings for this Ashcroft company. The financials show that government has agreed to honor one of these secret guarantees of Intelco debt. Last year, BTL had assumed the debt and paid off the Alliance Bank. Well now, government has said, it will take over, and is giving BTL $5.8 million in a tax write off.

Channel 7 – Dr. Gilly Canton Moves from PUC to BNE

With the PUC driven into a pit of irrelevance, this is no suprise…

Original Story:

http://www.7newsbelize.com/archive/09060602.html 

He’s been the PUC boss since its inception in 1999, but now Dr. Gilbert Canton is going to work for petro-dollars at Belize Natural Energy. A press release from BNE this evening announced that canton has been appointed CEO.

As Chairman for the past 7 years, Canton basically built the PUC and government will now have to find a suitably qualified person to act as chief regulator for an increasingly diversified and competitive industry driven by zealous foreign investors. Up to the time of his appointment, the CEO’s duties at BNE were carried out by company directors. And, also in today’s release those directors have spoken for the first time since the House of Representatives passed legislation for a 40% income tax regime. The Senate blocked passage of that legislation and has sent it back to committee. But despite the so-called shifting of the goal posts, and they could shift even more, BNE has gotten a $30 million loan with the Standard Bank. According to the release, BNE continues to re-invest 100% of its cash flow into exploration and operations.