The recent news by Digicel of the launch of 4G mobile does signal that mobile broadband technology in the Caribbean is developing. But what does all this mean and what impact might it have on the current mobile broadband environment?
Last week, Digicel announced it was launching 4G mobile broadband in Jamaica. Cable & Wireless, which operates the Bahamas Telecommunications Company (BTC) has also been upgrading its mobile network to 4G, and should be completing the works in a few weeks. Based on earlier announcements by the major providers, by the end of the year, most Caribbean countries would be well on the way to having at least one network offering 4G mobile broadband. However, what does “4G” mean, and what might be some of the implications of this upgrade?
What is 4G?
The Fourth Generation (4G) mobile technology standard refers to a key developmental milestone in the evolution of the mobile communications. The First Generation standard was based on analogue technology and was limited to voice. For Second Generation (2G), voice communication used digital technology, the most popular of which was the Global System for Mobile (GSM) communication. With Third Generation (3G), the capability to support data services was firmly established.
Under the 4G standard as defined by the International Telecommunications Union (ITU), one of its main characteristics is that the networks are all IP packet switched networks. This means that they can support both voice and data traffic on a common infrastructure with no distinction being made between the two. Additionally, and among other things, 4G would offer considerably faster upload and download spends than all previous standards, as reflected Table 1.
Table 1: Maximum data speeds for select mobile standards [Source: Discuss Tech
… LTE and WiMax, and to other evolved 3G technologies providing a substantial level of improvement in performance and capabilities with respect to the initial third generation systems now deployed. (Source: ITU)
Technologies that comply with the “true 4G standard” would offer considerably improved features and capabilities over earlier standards, including the “Pre-4G” forerunners. Hence in the eyes of many in the industry, this relaxation by the ITU of what constitutes 4G appears to be somewhat gimmicky, since it inherently undermines the distinction that perhaps ought to be made when standards such as LTE Advanced and WiMax 2 are finally implemented.
Okay, so we have “4G”, now what?
Although the transition from mobile Internet in the Caribbean from 2.75G to 4G is very commendable, due to the pricing for mobile Internet/broadband plans, vast portions of our population will still have not consistent and affordable access to the Internet. Table 2 illustrates the proportion of a person’s average monthly income in Bahamas and Jamaica (where 4G is being currently offered) that would be consumed by a sample of the 4G mobile plans available in those countries.
Table 2: Comparison of monthly spend and the percentage of average monthly income for select 4G mobile broadband plans offered in the Bahamas and Jamaica (Sources: Provider websites, the UN)
Across the region, the majority of citizens own a mobile phone, and in many countries, a significant number of persons appear to own two or more handsets. Moreover, a sizeable portion own a smartphone device, which ahs been designed for Internet/data services, rather than the basic phone that is generally limited to calling and text messaging services.
Due to the still high pricing for mobile broadband services, most persons using mobile handsets tend to access the Internet via Wi-Fi. In the majority of instances, Wi-Fi access might be free, although it might be password protected. However, users are dependent on the generosity of the Internet broadband customers who have installed wireless routers in order to share this connectivity. It also means that in the absence of Wi-Fi, e.g. if it is not available or the network is closed, affordable alternatives might be limited.
More importantly, there has been a steady decline of Internet activity via PC and laptops. Increasingly, the mobile phone, tablet, and other portable devices are becoming the device of choice to access the Internet. In that regard, it has been projected that by 2020, persons could be using as much as 1GB of mobile data per day, and will be using it for a broad range of activities, including, movies/video, online gaming and mobile web activities.
At current pricing levels, we in the Caribbean are still not in a position to fully enjoy the benefits of ICT and the Internet in particular, although we might have ready access to devices that would allow us to do so. This situation might be most acute for persons at the bottom of the societal pyramid, for which there is still a widening of the digital divide. It also means that the region will not be as competitive as other countries that have been able to offer mobile broadband service at more affordable prices, thus engaging larger portions of their populations.
Hence, the region could benefit considerably from a greater focus on mobile broadband, increased build-out of the service outside of main population centres, and more affordable pricing. We can only hope that in the coming months, either through competition or regulatory interventions, the cost of data services will be more decisively addressed to facilitate greater digital inclusion.
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Commendable article, good reporting. I am wondering if the Caribbean agencies responsible for regulatory interventions have studies the positivive benefits to be gained from regulating in such a way that a basic level (Teir 1) of service could become widely available, at an affordable cost. The positive impact would benefit youth, schools, creating new learning opportunities. Government would also see social benefits that are measurable.
Wonderful post but I was wondering if you could write a litte more on this topic?
I’d be very grateful if you could elaborate a little bit more. Thanks!
Great artcle.
I just want to observe that, while movies, online gaming, mobile web activities, are certainly going to flourish, the increase in internet usage is probably going to be in day to day transacting such as filing tax returns, renewing car licence, applying for passport etc.