The Caribbean’s journey toward a fully connected future has hit major snags, despite regional and international calls. In this article, we break down the three reasons why the Caribbean have not been realising its full digital potential.
The promise of a fully digital Caribbean, unified by seamless connectivity and driven by a thriving ICT sector, remains one of the region’s most critical unmet goals. As repeatedly highlighted by regional and international bodies—including a recent urgent call from the International Telecommunications Union(ITU) Secretary General to close the digital gaps and the Caribbean Community (CARICOM) Secretary-General Dr. Carla Barnett’s assertion that connectivity is the “cornerstone of regional progress”—the Caribbean’s advancement in telecoms and ICT continues to lag behind its potential.
Without a doubt, there have been notable successes, particularly in breaking the longstanding monopolies, establishing a regulatory framework and the considerable increase in mobile/cellular penetration. However, the region is still struggling to transition from basic connectivity to becoming a true leader in the global digital economy. Although there are structural, economic, and regulatory impediments that create persistent friction that slows down progress, time and again and against all odds, the region has shown that it can achieve extraordinary things.
Here are the three key reasons why Caribbean countries have not been advancing their telecoms and ICT infrastructure and adoption as effectively as they should be:
1. We are in awe of our past successes
The transition from a single telecoms monopoly environment to a regulated and competitive sector is a mammoth undertaking even in the most advanced and resourced countries. Hence, what Caribbean countries have achieved, especially those that were among the first in the region, is nothing short of stupendous.
The experience is often compared to David and Goliath. Caribbean countries were not only the underdogs but also were arguably in way over their heads. However, they did prevail, thanks to grit and not being intimidated by the scare tactics and pressure that were being exerted.
It cannot thus be understated that the lower telecoms rates, attractive packages and having a choice of providers that Caribbean citizens enjoy are due to the countries stepping up and doing what needed to be done. However, since that time, it appears that our countries have been happy with past success and the progress made to date. Moreover, it seems they have not realised that to continue to enjoy meaningful and timely progress requires active and direct intervention by our countries, which so far, they do not seem prepared to do.
2. We do not know what we want
Though not known by many, the impetus for the liberalisation of telecoms sectors across the region was economic. In the breakdown of the region’s banana industry and the transition from an agricultural-based economy to services, Caribbean countries needed to improve their comparative advantage with other countries. A significant deficiency was the rates payable for telecoms services, which at the time were primarily just basic voice telephony, which were several orders of magnitude more expensive than they are now.
Hence, to rebuild our economies, the telecoms sector had to be addressed. In many of our countries, the sole monopoly had a guaranteed rate of return and a host of other benefits on its then-existing licence and was not prepared to make any significant concessions, which in turn prompted governments to act… and act they did.
Nowadays, a critical imperative—to drive the effort to advance our telecoms and ICT sectors—does not appear to be readily evident. On previous occasions, policymakers coalesced around the urgent and seemingly existential threat and won. Now, it may be argued that decision-makers, in particular, are not fully clear exactly what we are fighting for.
3. We hope someone else will take the lead
Finally, as alluded to earlier, the region is subject to several impediments, which hinder the speed of development. High operational and infrastructure costs, outdated policy and regulated fragments, small populations and difficult terrain, among other factors, are entrenched challenges that, of themselves, can be overwhelming and difficult to overcome.
Over the years, a pattern has begun to emerge. How telecoms and ICT evolve in Caribbean countries appears to be solely directed by the telcos. Policymakers or regulators are not taking the strategic lead for and on behalf of the country, which in turn should be an important input into the strategies and plans developed by the telcos.
Though it could be argued that an arms-length approach has been taken to telecoms, where the emphasis is on allowing competitive forces to drive the market, the unfortunate fact is that virtually no Caribbean country has a truly competitive market. There is at least one player that would be defined as dominant or possessing significant market power, which obviates the competitive market argument. Notwithstanding, there is still a need for the country to provide national policy and strategic guidance—across all sectors or areas of the economy–in order to achieve the goals and targets envisaged. In telecoms and ICT, Caribbean countries have fallen short.
In summary, and in order for telecoms and ICT to be the driver for growth as envisaged, Caribbean countries must move beyond merely discussing the digital gap and must take decisive and proactive action to ensure we do not fall even further behind, and that the digital society we build exceeds our expectations.
Image credit: chris Robert (Unsplash)
