In a significant regulatory development, the Public Utilities Commission (PUC) has issued a stern warning to Belize Telemedia Limited (BTL) regarding its proposed merger with Speednet. The commission’s internal legal counsel, Stacy Grinage, has clarified that executing any binding agreement prior to obtaining formal PUC approval would constitute a direct violation of the Telecommunications Act.
The legal framework specifically prohibits license holders from entering into agreements that could facilitate anti-competitive practices. Grinage emphasized that the PUC possesses regulatory authority to intervene, establish compliance mechanisms, and take enforcement action when such violations are suspected.
The clarification emerged during press inquiries about how far BTL can proceed with merger discussions before crossing legal boundaries. While BTL’s board may theoretically make preliminary decisions about their strategic direction, any formal share acquisition agreement without PUC endorsement would be unlawful.
Addressing questions about the commission’s reactive stance to ongoing developments, Grinage explained that the PUC operates within specific procedural constraints. The commission currently awaits revised formal submissions from the involved parties before making determinations, rather than intervening based solely on public discourse or media reports.
The regulatory body has consequently adopted a watchful waiting position, monitoring developments while emphasizing that premature contractual commitments would breach telecommunications regulations. This stance places the ball firmly in the court of the merging entities to comply with proper regulatory channels before advancing their consolidation plans.