A significant legal challenge has emerged against Belize Telemedia Limited’s proposed acquisition of Speednet, with independent senators raising fundamental questions about the transaction’s compliance with national telecommunications legislation. The controversy centers on whether the merger violates explicit anti-competition provisions within Belize’s Telecommunications Act.
Despite recent comparisons by Dr. Leroy Almendarez, CEO in the Ministry of Public Utilities, who characterized the acquisition as a ‘natural monopoly’ similar to Belize Electricity Limited, senators have rejected this analogy. They emphasize that the regulatory frameworks governing telecommunications and electricity sectors are fundamentally distinct.
Business Senator Kevin Herrera presented a detailed legal argument referencing Section 42 of the Telecommunications Act, which expressly prohibits licensees from undertaking actions that ‘significantly lessen competition’ within the market. Herrera emphasized that the legislation was specifically crafted twenty-two years ago to transition Belize away from telecommunications monopolies and toward competitive market structures.
NGO Senator Janelle Chanona further questioned the procedural aspects, noting that substantive changes to telecommunications law would require parliamentary approval through the House of Representatives rather than through statutory instruments, which typically address regulatory adjustments rather than fundamental legislative amendments.
The developing situation suggests that the proposed acquisition may face significant legal hurdles unless addressed through formal parliamentary processes to amend existing telecommunications legislation.