Antigua and Barbuda is not a member of the Eastern Caribbean Telecommunications Authority (ECTEL), and is unlikely to join in the foreseeable future. This post suggests reasons why…

Last week, members of the Antigua and Barbuda Government with responsibility for telecoms attended a workshop in Saint Lucia hosted by the sub-regional regulatory body, the Eastern Caribbean Telecommunications Authority (ECTEL). The workshop, which was a consultation on a proposed electronic communications bill, signalled publicly that a closer relationship with ECTEL was being sought by that twin island state. Representatives for both parties were guarded in their statements to the press about the future of their relationship, but it may seem odd intrinsically that Antigua and Barbuda, as a full member of the Organisation of Eastern Caribbean States (OECS), is not a member of the ECTEL grouping, which itself is an OECS institution. This post explores why although Antigua and Barbuda might be eager to strengthen ties with ECTEL, they are unlikely to join that group in the foreseeable future.

The ECTEL context

The Eastern Caribbean Telecommunications Authority (ECTEL) was established by Treaty signed on 4 May 2000, by five of the six full member countries of the OECS – Saint Kitts and Nevis, Dominica, Saint Lucia, Saint Vincent and the Grenadines, and Grenada. However, prior to that, in 1998, those five countries jointly embarked upon pro-competitive reform of their telecommunications sectors, under a World Bank –supported “Telecommunications Sector Reform Project”.  The resulting regulatory machinery comprises a two-tiered system: a local regulator in each of the Member States – the National Telecommunications Regulatory Commissions (NTRCs), and a regional body, ECTEL, at the hub (Figure 1).

Figure 1: Arrangement of the OECS regional regulatory machinery comprising ECTEL and the NTRCs (Source: ICT Pulse)

In keeping with the Treaty, ECTEL is charged with ensuring, among other things:

  • open entry, market liberalisation and competition in telecommunications of the participating countries
  • harmonised policies on a regional level
  • universal service
  • an objective and harmonised regulatory regime
  • fair pricing and the use of cost-based pricing methods.

By the time ECTEL was established, the five member countries had agreed on a suite of telecoms legislation – a new Act and Regulations that would guide their sectors – which were enacted in their individual jurisdictions, and recognised ECTEL. They were all also in the throes of negotiating with the then incumbent operator, Cable & Wireless, to end its monopoly in all of the countries.

Five plus one does not necessarily equal six

Without a doubt, Antigua and Barbuda might be keen to benefit from ECTEL’s technical capacity and experience. However, it is unlikely to accede to the ECTEL Treaty anytime soon for the following reasons.

Considerably different frameworks. First, there are significant differences in the telecoms market and framework in Antigua and Barbuda and what obtains within the ECTEL region. For example, all markets in the telecoms sectors in the ECTEL region have been fully liberalised, but  in Antigua and Barbuda, there might still be some protectionist systems in place to allow the government-owned provider, the Antigua Public Utilities Authority, to remain a viable player.

On the other hand and historically in the five ECTEL countries, a privately owned telco, Cable & Wireless, had provided telecoms services. Hence those governments did not have an intimate vested interest in minimising the impact of their reform on that entity, and neither did they need to undertake protracted privatisation processes to relinquish ownership.

Differing ethos and history. Although not specifically articulated in the ECTEL Treaty, a key expectation of the regional approach to telecoms policy and regulation is the establishment of a “single telecoms space” among the five participating countries. Individually, the populations of the ECTEL countries ranged from between 50,000 and 175,000, which on their own might not provide telcos with the economies of scale necessary to enter a market, or to offer attractive services and pricing. However, collectively, thanks to harmonised policy, legislation and regulation, which are coordinated at the regional level by ECTEL, the ECTEL countries are able to better position themselves to attract investment and to accelerate development of their teleom sectors.

It is also important to highlight that although the single telecoms space concept would have been an ideal to which to aspire, to varying degrees, it has already been realised through current policies and the legislation, and is likely to be more fully developed in the new, proposed legislation. From the outset of the reform, the countries recognised, with great reluctance, that they would have to cede some of their sovereignty to create a well-functioning regional machinery. However, throughout the entire liberalisation process their individual and collective resolve was severely tested, and ultimately strengthened by that shared experience – which did not include Antigua and Barbuda, and is reflected in the video below:

No political will. Within the Caribbean, one of the greatest indicators of the likely success of government-driven initiatives, is the extent to which there is sufficient political will to drive those activities. As reflected in the above video, the telecom reform processes had not only the fullest support at the highest levels of government, that support was also reflected in the common position was taken among to countries, which in turn strengthened considerably their negotiating position and leverage. Hence within four years from the commencement of the reform project, the ECTEL countries were able to prepare and enact new legislation; end the then existing monopoly; establish their regulatory framework; and fully liberalise their sectors to embrace competition.

In contrast, Antigua and Barbuda has not made any comprehensive declaration of what it hopes to achieve in its telecoms sector. In recent reports, it appears keen to learn from the ECTEL experience, and to benefit from the expertise resident there, but only to improve its local product and service offerings (Source: Antigua Observer)

Final thoughts

In summary, Antigua and Barbuda does not appear to consider the state of its telecoms sector as dire, necessitating it to join the ECTEL grouping and urgently implement the requisite changes to its framework. To varying degrees there is competition in its markets and it enjoys somewhat comparable servcies and prices to its regional counterparts. Hence, to the extent it can benefit from (relatively) a loose association with ECTEL – which has developed the knowledgebase and capacity to competently address telecoms issues, especially from the perspective of Small Island Developing States – Antigua and Barbuda is likely to choose to continue along that vein into the foreseeable future.

Image courtesy of ECTEL.

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