The Internet is widely recognised as being a catalyst for economic growth and development, and Caribbean countries have been eager to embrace this platform to achieve those goals. Although many of our countries have implemented a broad range of telecoms and ICT-related policies and initiatives, to a considerable degree, there is still a sense that individual countries, and the region as a whole, have not yet reached the ‘tipping point’ as it relates to the internet, and by extension, realising digital societies.

In a new report, Unleashing the Internet in the Caribbean: Removing Barriers to Connectivity and Stimulating Better Access in the Region, commissioned by the Internet Society, and launched last week, the state of the Internet in the Caribbean was examined. The report also highlights the main challenges being experienced in unleashing the Internet in the region, and recommendations are included on how to better manage those challenges and capitalise on the opportunities.

The report is chock full with data, drawn from a broad range of sources, and reflects what was publicly available mid-2016. Regular readers of our Snapshot series, the information on Internet penetration, Internet affordability, along with upload and download speeds for select Caribbean countries; however, in this report offers more holistic view of the state of the Internet in the Caribbean, which cannot be captured in a 750 or 1000-word article.

According to Kathy Brown, President & CEO of the Internet Society, Caribbean countries have been positioning themselves to to harness the Internet, but more is still needed:

The Caribbean has done much to increase Internet penetration in the past few years. Every country in the region, including the 11 selected for this research, is connected to the global Internet network via submarine cable systems. This is great news. However, governments have been largely more reactive than proactive in nurturing the development of the Internet to meet their countries’ needs. Among the things that governments can do is provide investment incentives to improve coverage…

…It’s important for Caribbean societies to not only use the Internet for entertainment and consumption of content, but also as a tool to improve efficiencies, optimize processes, and drive innovation…

(Source:  Internet Society)

It is also important to emphasise that this report focusses on the Caribbean islands and Caribbean Community (CARICOM) member states. It is not a report on Latin America and the Caribbean, with a few of the larger Caribbean islands included. It is a document for, and on, the region. Hence it is hoped that it will be read and discussed by all stakeholders.

Finally, and on a personal note, I – through ICT Pulse’s parent company, ICT Pulse Consulting Limited – am one of the authors of the report. As anyone who has prepared any major report can appreciate, it requires the cooperation of no only the authors, but also the stakeholders who were approached and who shared their insights and experience. This report is a demonstration of all of our collective efforts to truly help the region to more fully utilise the Internet, and all of the benefit it offers.

Image credit:  al (flickr); Internet Society

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In 2015, the Eastern Caribbean Telecommunications Authority (ECTEL), which is the regional hub of the telecoms regulatory machinery in the Organisation of Eastern Caribbean States (OECS), commissioned a study on the Impact of Broadband on Economic Growth in ECTEL Member States. The study, which was funded under the Caribbean Regional Communications Infrastructure Project (CARCIP) project, and conducted by  Mr. Curlan Gilchrist, St. George’s University in Grenada, sought to quantify, among the ECTEL Member States, the “extent to which investment in broadband technology and by extension broadband penetration would impact economic growth”.

It should be noted that such studies – to try to quantify the impact of broadband on economic growth – are not new. Organisations, such as the World Bank, Strategy& and McKinsey and Company, have conducted similar exercises, and found a relationship between penetration and economic growth. Specifically, for every 10 percentage point increase in broadband Internet penetration in low- and middle-income countries, economic growth increases by between 1.38 and 1.5 percentage points (Source:  World Bnk).

How do the results of the ECTEL study compare? Across the five ECTEL Member States, namely, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines, and for the period for the period 2002 to 2014, a correlation was found between economic output and broadband Internet penetration rate.  From the model built, the overall finding was that “an increase in the broadband penetration rate of 1% would lead to an increase in real economic growth of 0.076% (other variables held constant)” (Source:  ECTEL)

On initial review, the finding is disappointing., as it suggests that among the ECTEL countries, the impact is considerably less than that found in other parts of the world. For a 10 percentage point increase in broadband Internet penetration, low- and middle-income countries experienced between 1.38 and 1.5 percentage points increase in economic growth, versus 0.76 percentage points increase among ECTEL Member States. Having said this, there are numerous unknowns, which may make such comparisons flawed. For example:

• different models may have been used
• different variables may have been kept fixed
• different time periods may have been examined
• different the assumptions may have been made throughout the exercises; and
• the possible wide economic and social disparity of the low- and middle-income countries examined, when compared with the ECTEL Member States.

Further, and in the writer’s opinion, real life has a number of moving variables. It is not a model in which some variables can be held constant. Hence, although the model for the ECTEL Member States found a relationship between increasing broadband Internet penetration and economic growth, a broad range of policy, regulatory and environmental factors (to name a few) could be limiting the practical effect – of broadband on economic growth – that is experienced.

Additionally, a number of assumptions were made whilst conducting the study, which may need to be more closely examined. For example,

Among these countries, the introduction of broadband technology in the ECTEL member states is assumed or perceived to have impacted businesses through improvement in productivity, efficiency and competitiveness. Likewise, households are assumed to be able to apply this new technology to access a variety of services, thus providing them with the opportunity to improve their standard of living.

(Source:  ECTEL)

Hence, while there may have been a (general) increase in productivity with increasing broadband Internet penetration in the region, there have been concerns that citizens, and even businesses, are not using technology as productively as they could be, which again could be reflected in the findings made.

In summary, it must be highlighted that policymakers worldwide, and even in the Caribbean, have been emphasising the importance of broadband Internet as a driver of development, and have used it to justify implementation of a broad range of initiatives and policies. In that regard, the ECTEL study is highly commendable, as it tries to provide some scientific basis for such claims. However, as evidenced by the brief discourse above, the study may have also raised more questions than answers. It may thus be prudent to encourage additional studies on the topic in the region, to not only confirm (or refute) the ECTEL findings, but also to more fully explain the impact of broadband Internet on economic growth in the Caribbean.

Image credit:  Richard Giles (flickr)

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Increasingly, Caribbean countries have been expressing intentions to offer free Wi-Fi. Those initiatives tend to range from having free access in public spaces in major towns and cities, to 100% country-wide coverage. However, in Antigua and Barbuda, the VC Bird International Airport may be taking a step backward.

In the local newspapers last week, the Minister responsible for Civil Aviation, Robin Yearwood, re-floated a proposal to change the conditions on which the airport offers Wi-Fi service. Unlike currently where free Wi-Fi is offered, there is now the intention to permit free access to the service for 30 minutes, and thereafter, passengers would be required to pay. The Minister was quick to point out that the proposal is not inconsistent with what obtains in other Caribbean countries:

You get a half an hour free and then afterwards you pay. In some airports that I travel to, right here in the Caribbean you have to pay; you have to start by putting in your credit card information.

(Source:  The Daily Observer)

Although the situation in Antigua and Barbuda was the impetus for this article, many Caribbean countries are guilty of not offering free public Wi-Fi, especially in areas such as airports and government offices, and in some instances, are charging fees for such access. Below are some considerations with respect to having free Internet access at airports in the region.

1. Connectivity has become the norm. In this day and age, people expect to be connected to the Internet. In an airport setting in particular, which is catering not only for residents and Caribbean nationals, who might have limited expectations of having online access, but also international visitors, offering free Internet access can improve their overall travelling experience, especially as they wait for their flights.
2.  A welcomed distraction during long waits. Depending on the airline, flight delays in the region can be the norm, rather than the exception. In that regard, options to help passengers while away the time could be a welcomed distraction, and make them less likely to complain about the unending delays that can be so common in the region.
3.  Passengers already pay departure taxes. Virtually all Caribbean countries charge air travel passengers a departure tax, which ranges between USD 10.00 and USD 20.00, which passengers either pay at the airport prior to flight, or it is included in the cost of their airline tickets. This tax tends either to be seen as revenue for the local airport authority to offset its operating expenses, or as revenue for the Consolidate Funds/government purse, and is in addition to a number of others that are paid when purchasing the airline ticket. In some instances, the taxes exceed the airfare payable, which can be a disincentive for people to travel. Hence, it can be argued that a small portion of the departure tax paid per passenger (for example) can be applied towards the cost of Internet access thereby improving the airport experience, resulting in a win-win situation..
4.  Controls are needed. Although the above points are all in support of airports providing free Internet access to travellers, it must be emphasised that people can abuse the Internet access provided Hence controls ought to be established with respect to the downloading of certain content, such as inappropriate images, pirated software, music, etc. Further, and in order to manage traffic congestion issues on the network, it would also be important to block known torrent sites, to prevent downloads from eating up the whatever bandwidth provided and congesting the network.

In summary, the introduction of paid Internet access at Antigua’s VC Bird International Airport is a contentious issue, which is why although the position was announced last year December, it has yet to come to fruition. However, for Antigua and all other Caribbean countries that rely considerably on tourism, it is important to continue to be an attractive location for travellers, especially as the industry is becoming increasingly competitive, and seemingly marginal benefits can yield huge returns in the long run.

Image credit:  Stuart Miles (FreeDigitalPhotos.net)

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Over the past few weeks, there have been news reports about Caribbean telecoms service providers expanding their offering to include subscription television (TV)  in a number of countries across the region.  The two main regional firms, Digicel and Flow, are both eager to be recognised as quad-play providers in all of the countries in which they have a presence – by offering fixed voice telephony, mobile/cellular, Internet, and cable/subscriber TV services. However, while offering subscriber TV could complement their existing services, and would be just an add-on to their existing infrastructure, could the move into that area be too little too late?

In addition to subscriber TV, Caribbean consumers have the option of accessing video streaming and Video on Demand (VoD) services via the Internet. Platforms, such as Netflix, offer thousands of selections from which to choose, and are continually adding new content (movies, TV series, documentaries, etc.) to their libraries.

Today, most of us in the Caribbean access TV services via a cable/subscriber TV package. Free-to-air broadcasting would have been the norm 20 or 25 years ago, when cable/subscriber TV would have been in its infancy in the region, and households would have had an antennas on their roofs, or (rabbit ears) next to their TVs. Today, most Caribbean countries are in the process of formally adopting digital TV, which will be the final nail in the coffin for free-to-air TV transmissions.

Service personalisation

Increasingly, and as has been occurring in the digital space for the past five or so years, there has been a trend towards allowing consumers greater personalisation of product and service offerings. Not only has it allowed firms to distinguish themselves from each other, it also fosters an appreciation of the individual customer, and their individual needs.

Currently, most subscriber TV service providers offer a range of programming packages from which to choose, and they may even allow customers to select individual channels as an add-on to a basic package. However, the degree of personalisation allowed tends to be limited. On the other hand, with VoD, the degree of customisation permitted is considerably greater. Subscribers can select the individual shows and episodes they wish to view, and frequently, the providers also recommend content, based on subscribers’ viewing history and perceived preferences.

Commercials

Outside of the premium subscriber TV channels, the remaining channels tend to rely upon paid commercials to be viable. At best, these commercials can be distracting and break the momentum of a good show; at worse, they drag on way too long and try the patience of the viewer. With respect to VoD, and for paid services, subscribers are not plagued with commercials, and can watch their desired programmes unimpeded.

Scheduling

Consistent with the personalisation thrust, VoD offers a distinct benefit by allowing subscribers to view the available content as and when they wish. For example, when Netflix releases the latest season of House of Cards, all of the season’s episodes are available at the same time. Hence subscribers can choose to binge-watch the episodes, or stretch it out over several days, weeks or months, depending on their mood or schedule. On the other hand, most of the content available via subscriber TV tends to be on a fixed schedule and not controlled by the viewer. It therefore means that, outside of making provisions to record it, that content is not available outside of the scheduled times, and may never be seen again.

The shared viewing experience  

Having said this, the format of most subscriber TV channels – more so that VoD, fosters the shared viewing experience: be it the live coverage of the still on-going Olympic (two down, on to go Usain!), or watching the latest Game of Thrones episode, whilst simultaneously participating in the social media discussion of the new plot twists as they emerge, and then discussing them with friends the following day. Although some VoD platforms, such as YouTube, can support live coverage, it tends to be the exception, rather than the norm.

From the above discourse, VoD has a number of distinct benefits that may be more aligned with how people live today. However, there still appears to be room for other options, such as subscriber TV, which offers a different experience. Hence consumers may not need to choose one over the other, but enjoy the strengths of both as and when they choose.

Image credit:   Jonas’ Design (flickr)

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In March this year, the Caribbean Association of National Telecommunications Organisations (CANTO) published a Code of Practice on Safeguarding the Open Internet, which its members, which comprise telecoms operators from across the region, would voluntarily sign as a demonstration of their commitment to maintain an Open Internet. Since the launch of the Code of Practice, a number of operators have become signatories to the document, including, but not limited to:

• Cable & Wireless Communications (all countries)
• Digicel Antigua and Barbuda
• Digicel British Virgin Islands
• Digicel Saint Lucia
• Digicel Grenada
• Digicel Saint Kitts and Nevis
• Digicel Saint Vincent and the Grenadines
• Digicel Trinidad and Tobago
• GT&T (Guyana)
• Telecommunications Services of Trinidad and Tobago
• Telem Group Sint Maarten.

According to the United States (US) Federal Communications Commission (FCC), an Open Internet means “consumers can go where they want, when they want”:

This principle is often referred to as Net Neutrality. It means innovators can develop products and services without asking for permission. It means consumers will demand more and better broadband as they enjoy new lawful Internet services, applications and content, and broadband providers cannot block, throttle, or create special “fast lanes” for that content.

The Code of Practice presented by CANTO is a relatively straightforward, three-page document, to which the Organisation and its members “support the concept of the open internet and the general principle that legal content, applications and services, should not be blocked” (Source: CANTO). Further, the document outlines the following four commitments to which signatories would be adhering:

1.  within the terms, bandwidth limits and quality of service of their individual service plan, customers should have access to their choice of legal Internet content, services and applications;

2.  any restrictions on use attached to a particular service plan are effectively communicated to customers;

3.  save for objective and transparent reasons traffic management will not selectively target the content or application(s) of specific providers within a class of content, service or application;

4.  they will make available a range of service plans that provide customers with viable choices for accessing legal content, applications and services.

(Source: CANTO)

What might be some of the implications of this Code of Practice?

In the preamble to the Code of Practice it is made clear that the document seeks to balance “the needs and freedoms of end users and content providers with the requirement of Operators to run their networks and their corresponding freedom to innovate and develop new services and business models”. It therefore means that the Code of Practice will not only seek to be mindful of the needs and freedoms of their customers and of content providers, but also balance that with the rights and privileges Caribbean telecom operators should possess. In that regard, two issues are highlighted which could merit closer examination.

First, throughout the document it is continually emphasised that legal.lawful content, applications and services should not be blocked. However, should an operator be of the view that a particular service (for example) is illegal, does it go ahead and block it, or should that matter be first decided by a third party, such as the local telecoms regulator or the courts?

As most readers may recall, we have had situations in the past, especially with respect to over-the-top services, such as Viber, which Caribbean telecoms firms blocked first – on the basis that they were illegal – and it was only due to the furore and intervention of regulators that the posture was reversed. Hence, it may be useful for some clarity to be provided on this matter, with the hope that a common approach could be adopted across the region.

Second, in the event that there is congestion on the network, and to assist in managing said congestion, it is implied that the operators could block or throttle some services and applications. While such actions should be done in an objective and transparent manner, so as to not single out a specific service or application, it can be done, “if there is a valid reason to do so”.

It therefore means that an operator ought not to block or throttle YouTube, for example, due to it popularity among end users and the amount of bandwidth it consumes (at certain times of the day). However, the code suggests that the operator could block or throttle video streaming services, including YouTube, due amount of bandwidth they tend to consume, especially when most residential customers are sharing capacity on the network, and to ensure basic minimum quality for all customers sharing that bandwidth.

Another scenario could also occur, where on lower prices plans customers will not be permitted to access certain applications or services. The premise for that position could be that in order to protect or better manage congestion on a network, for high bandwidth Internet services or those that benefit from having a high speed connection, to access those services would be restricted to specific data plans.

Final thoughts

Notwithstanding the observations made above, the Code of Practice is a useful document, as it establishes a common and known basis upon which signatories plan to operate their Internet networks and provide Internet services, which hopefully, should lead to greater transparency in how the telecoms firms operate, and especially with respect to their service contracts. However, as the previous section suggests, the Code raises questions that merit further discussion, with the objective of being preemptive, and possibly fostering a common approach among both the firms and telecoms regulators.

Finally, and in the spirit of that transparency we hope CANTO will make the register of signatories to the Code of Practice public. Such information will become increasingly important to consumers, who – for a broad range of reasons – may need to know which Internet providers in their market have committed to the Code and which ones have not.

Image credit:  Jeremy Brooks (flickr)

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Mid-to-late next week, 10–12 August to be exact, ICT specialists and stakeholders from across the Caribbean will be meeting in Belize for the 12th Caribbean Internet Governance Forum, which has been organised by the Caribbean Telecommunications Union, and through which the following will be undertaken:

*    Facilitate open discussion on current Internet governance matters of global interest e.g. ICANN (Internet Corporation for Assigned Names and Numbers) transition, net neutrality, etc.  

*    Develop strategies and approaches for building and/or strengthening national multistakeholder structures to enhance Internet governance capacity, expertise and action in the Caribbean  

*    Conclude review and update of the Caribbean Internet Governance Policy Framework V 2.0  

*    Explore and spread awareness on opportunities for Caribbean growth through the Internet Economy  

*    Build local capacity in Internet governance to enable, maintain and strengthen effective Caribbean representation at global Internet Governance Fora.

(Source:  CTU)

Consistent with past experience, some of the sessions may be live streamed, thus allow individuals who have an interest in the topics being discussed to join remotely. However, one of the key objectives of this year’s forum is to update and finalise the Caribbean Internet Governance Policy Framework. The current version of the Framework, which was finalised in 2013, focusses on the following six strategic areas:

1. Infrastructure for Broadband Connectivity
2. Internet Technical Infrastructure and Operations Management
3. Legal Frameworks and Enforcement
4. Internet Content Development and Management
5. Public Awareness and Capacity Building
6. Research

Under each strategic area, a number of priority recommendations have been set out to address a number of key issues, as shown in Table 1 below.

Table 1: Strategic areas and key issues in V2 of Caribbean IG Policy Framework (Source: CTU)

At the Forum and in the report that follows, we may get a sense of the progress, if any, that has been made in the strategic areas and with regard to the priority recommendations made. However, to a considerable degree, it may only be possible to identify the progress qualitatively, as very few quantitative or measurable goals were identified in the current version (V2) of the Policy Framework. Hence, in the next iteration of the document, consideration could be given to either incorporating more quantitative measures or outcomes, which can be used to betteer measure our success.

Image credit:  Blaise Alleyne (flickr)

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We have been anxiously awaiting the release of the latest telecoms statistics from the International Telecommunications Union (ITU), which we use every year to examine the state of development of telecoms – in terms of subscriptions density – across the Caribbean. Table 1 lists the countries that were included in the exercise. Since our 2015 review, we have added Puerto Rico, to bring our total to 23 countries. Again it should be noted that Bonaire, Curaçao and Sint Maarten have not been included, as the needed data does not appear to be publicly available for those countries.

Table 1: List of countries surveyed for 2015 update on state of telecoms in the Caribbean (Source: ICT Pulse)

Approach

The results presented in rest of this piece were drawn from data published by the International Telecommunications Union (ITU) and the Groupe Speciale Mobile Association (GSMA), and comprised the following for countries across the Caribbean:

• density of fixed-line telephony subscriptions
• density of fixed broadband Internet subscriptions
• density of mobile/cellular telephony subscriptions
• density of mobile/cellular broadband Internet subscriptions.

It ought to be noted that both the ITU and GSMA depend on either the government or the telecoms firms to supply the data that is eventually published. Hence it is not clear the extent to which they corroborate or otherwise validate the data published, and neither have any explanations been given for any anomalies that might be evident.

The per capita Gross National Income (GNI) was drawn from databases managed by the United Nations (UN). The GNI is useful to get a sense of a country’s the level of development, based on the average income of its citizens, and consequently their likely wealth to support the take-up and use of telecoms services examined.

Results: Fixed-line telephony market

Across the Caribbean, there continues to be a wide disparity in fixed-line telephone subscription densities across the 23 countries examined. The highest subscriber densities were reported in Montserrat, at approximately 58 subscriptions per 100 inhabitants; followed by the Cayman Islands, with almost 56 subscriptions per 100 inhabitants, and Barbados, with nearly 55 subscriptions per 100 inhabitants (Figure 1).

Figure 1: Fixed-line telephone penetration in select Caribbean countries as at 2015 (Source: ITU, UN)

On the other hand, the lowest fixed-line telephony subscriber density was reported in Haiti, at approximately 4 subscriptions per 1000 inhabitants (not per 100); Belize, at about 6 subscriptions per 100 inhabitants; and Jamaica, at around 9 subscriptions per 100 inhabitants.

Results: Fixed broadband Internet market

Data on fixed broadband Internet subscriptions in 2015 was available for 22 Caribbean countries, as opposed the 14 countries reported in our last review. The highest subscription density was recorded in Montserrat at nearly 116 subscriptions per 100 inhabitants, but it is not shown in Figure 2 in order to better present the remaining results. At less than a third of the Montserrat figure, the next highest fixed broadband Internet subscription density was recorded in Anguilla, at over 34 subscriptions per 100 inhabitants, followed by Saint Kitts and Nevis, at nearly 30 subscriptions per 100 inhabitants.

Figure 2: Fixed broadband subscription densities in select Caribbean countries as at 2015 (Source: ITU, UN)

On the other hand, the lowest fixed broadband Internet subscription density was reported in Haiti, with considerably less than 0 subscriptions per 100 inhabitants. Haiti was followed by Cuba, with 7 subscriptions per 10,000 (not 100!) inhabitants, and thereafter, Belize, with nearly 3 subscriptions per 100 inhabitants.

Results: Mobile/cellular market

Figure 3 shows the mobile/cellular subscription density in 22 Caribbean countries. Of those examined, 14 countries still reported mobile/cellular subscriptions densities over 100 subscriptions per 100 inhabitants. The highest subscription density was found in the Suriname, at approximately 178 subscriptions per 100 inhabitants. Suriname was followed by Anguilla, at around 178 subscriptions per 100 inhabitants, and Trinidad and Tobago, at nearly 158 subscriptions per 100 inhabitants.

Figure 3: Mobile/cellular penetration in select Caribbean countries as at 2015 (Source: ITU, UN)

The lowest mobile/cellular subscriptions densities were recorded in Cuba, at nearly 30 subscriptions per 100 inhabitants. Belize has the second lowest of the group, at 49 subscriptions per 100 inhabitants, followed by Haiti, with approximately 68 subscriptions per 100 inhabitants

Results: Mobile broadband Internet market

We have been able to source mobile broadband Internet subscription data for most Caribbean countries as at the end of 2015, which is shown in Figure 4. This metric covers both prepaid and post-paid mobile/cellular broadband subscriptions, but would not include Internet access by Wi-Fi.

Figure 4: Mobile broadband subscription densities in select Caribbean countries as at 2015 (Source: ITU, UN)

For the 21 countries examined, the highest subscription density was recorded in Suriname at around 60 subscriptions per 100 inhabitants, and was followed by Puerto Rico and Aruba, with 47 and 43 subscriptions per 100 inhabitants, respectively. On the other extreme, the lowest density was recorded in the British Virgin Islands, at 3 subscriptions per 100 inhabitants. The British Virgin Islands was followed by Grenada, at 5 subscriptions per 100 inhabitants, and Saint Lucia and the Turks and Caicos Islands, both with 7 subscriptions per 100 inhabitants.

Results: Region-wide trends

Finally, Figure 4 shows the subscription density trends across the Caribbean over the past eight years, 2008—2016, for the fixed-line, mobile/cellular and fixed broadband Internet services.

Figure 5: Averaged fixed-line, mobile/cellular and fixed broadband Internet subscription penetration rates across the Caribbean from 2008—2015

The density of mobile/cellular subscriptions continues to outstrip considerably those for fixed-line telephony and fixed broadband Internet. For mobile/cellular and fixed broadband Internet, there growth was experienced between 2014 and 2015, whilst there was a marginal decline in average fixed-line subscription density in the region. At the end of 2015, subscriptions density for fixed-line voice and fixed Internet broadband were around a quarter and one-fifth that of mobile/cellular service, respectively.

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Earlier this month, the World Economic Forum (WEF), in conjunction with INSEAD and Cornell University, published the 2016 Global Information Technology Report (GITR), which examines the state of network readiness worldwide. In this year’s edition, 139 countries worldwide were assessed, with only five from the Caribbean/CARICOM region: Dominican Republic, Guyana, Haiti, Jamaica, and Trinidad and Tobago.

With the release of tis report, we once again examine the performance of the Caribbean/CARICOM countries included, and highlight some of the perceived strengths and weaknesses of each country, which contributed to their final scores.

The assessment framework

The Network Readiness Index (NRI) is a quantitative result that measures “the degree to which economies across the world leverage ICT for enhanced competitiveness” (Source: WEF). The NRI provides a comprehensive assessment of network readiness in individual countries (or economies) through 53 indicators, which have been organised under ten pillars and subsequently categorised into four main indices as outlined in Table 1.

Table 1: Description of the main indices that comprise the 2016 NRI (Source: WEF)

The maximum possible score for each sub-index is 7, and for each country (or economy) the four sub-indices are averaged to determine its NRI. For the 2016 exercise, 139 countries were assessed, a decrease from the 143 countries that were included in the 2015 report.

2016 NRI results for select Caribbean countries

For the 2016 NRI exercise, there was little change in the top ranked countries globally, as reflected in Table 2. Among Caribbean/CARICOM countries, Trinidad and Tobago was the top ranked in the Caribbean/CARICOM group. Further, Trinidad and Tobago was the only country that improved its ranking, moving up three spots from 70 last year, to 67.

Table 2: 2015 NRIs for the top 10 ranked countries and the Caribbean/CARICOM countries included in the assessment (Source: WEF)

Figure 1 highlights the NRI scores for Caribbean/CARICOM countries over the past 10 assessments, starting in 2007. Over that period, no Caribbean country experienced a steady and consistent improvement in their NRIs. Currently, it is only Trinidad and Tobago that has not had their NRI decrease since 2013, which regardless of the changes in their ranking, indicates that, based on scores, their network readiness is indeed improving.

Figure 1: NRI scores in select Caribbean countries from 2007 – 2016 (Source: WEF)

Upon closer examination of the sub-indices for the Caribbean sub-grouping, and similar to previous years, the majority of countries secured their highest score under the Readiness Index, which measures infrastructure and digital content; affordability of telecoms services; and skills (Figure 2).  On the other hand, the countries’ performance was weaker with respect to Usage and Impact, which suggest that businesses and governments in particular, are not using ICT/IT effectively, and consequently it is having limited impact on the countries’ economic and social development.

Figure 2: Breakdown of the 2016 NRI for select Caribbean countries into their constituent sub-indices (Source: WEF)

Similar to previous years, and for each country (or economy) examined, the GITR provides a comprehensive account of the results for all indicators assessed. Hence, countries can refer to those indicators and the scores they received to guide policies and initiatives they might wish to develop, which can improve their network readiness in the future. Table 3 highlights the greatest strengths and weaknesses of the countries in the Caribbean sub-grouping.

Table 3: Select network readiness strength and weaknesses of Caribbean/CARICOM countries included in the 2016 GITR (Source: WEF)

Final thoughts…

Having reviewed and reported on the NRI results over the past six years, the absence of Suriname and Barbados (in particular) in this year’s exercise was felt. The report indicated that those two countries had been excluded from the GITR 2016 consistent with The Global Competitiveness Report 2015–2016. Hopefully in the next edition of those two reports, the countries invited to participate will do so, as not only do we all benefit from the insights such assessment share, but the countries also can better examine their own performance, along with their perceived strengthens and weaknesses, in a global context.

It was also interesting to note that although the enabling environment and infrastructure might be relatively good among the countries examined, they are still challenged to harness the technology, evidenced by the lower scores received under the Usage and Impact sub-indices. It may thus be prudent for Caribbean policymakers and business leaders to consider the extent to which their organisations, and by extension their countries, are truly leveraging ICT and the Internet, in order to transition to digital societies.

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In an address to the Jamaica Employers Federation two weeks ago, Prime Minister of Jamaica, Andrew Holness, was reported as saying that globally, it could be another 10 to 15 years before access to the Internet is considered a basic human right. He further noted, “this is so because transactions are going to be moved mainly towards a digital platform” (Source:  The Nation)

During his speech, the Prime Minister highlighted a few situations in which government services and transactions in Jamaica were not being done digitally, and the need for the State to drive the requisite efforts to implement digital systems. However, while the Prime Minister’s sought to frame himself as being prepared to lead the charge, he seemed to be out of touch with the importance of the Internet, and the current state of play in the world today. Below, four key points are discussed.

1. We are already in the digital age, the Internet age

From all reports on Mr. Holness’ speech, there is a sense that the digital age is still to come. However, the digital age began with the availability of personal computers in the 1970s. Since that time, the cost of computing  devices have decreases considerably, whilst their processing power and sophistication have increased exponentially. Hence today, individuals owning, or at the very least having access to a computing device is the norm.

Further, the digital age is also widely recognised as the onset of the information age, which was bolstered considerably by the development of the world wide web in the late 1980s. We are nearly 30 years into having Internet access as we know it, which has been driving innovation and also transforming the way we live and work. Suffice it to say, we are already neck-deep into the digital age and so we, in the Caribbean, should be more concerned about not falling even more behind that we already are.

2.  The Internet is already critical to competitiveness

For Caribbean countries, and those that are heavily dependent on foreign direct investment, an essential criteria for favorable consideration has been the cost and availability of telecoms services. Historically, the assessment was limited to fixed-line telephony, with a particular emphasis on international calling. More recently, the focus has switched to the Internet – the cost of service, the plans, technology, bandwidth and transmission speeds available, the overall quality and reliability of the service, to name a few. Further, a number of global location assessment exercises, such as those examining country competitiveness, business readiness, or with respect to particular services and industries, such as offshore outsourcing, all place an  emphasis on the Internet, for example with respect to cost, availability, and use by businesses, government, and citizens.

Additionally, in country, the Internet is driving innovation and organisational efficiency to make businesses even more competitive. In that vein and increasingly, governments worldwide are implementing electronic (e-) government, to optimise their systems and resources. According to the latest e-government survey conducted by the United Nations, countries such as Barbados, Antigua and Barbuda, and Grenada were the top ranked in the Caribbean, whilst Jamaica was considerably lower down on the list. Nevertheless, there is considerable room for more efficient engagement within governments in the region, and with respect to the delivery of services to its external customers.

3.  We need to future-proof our population

Leading from the two previous points, especially in light of all of the calls by policymakers across the region, over the past 20 years or so, to ensure that our students are ready for the jobs of tomorrow, the Internet will continue to be an essential tool. In that regard, it is crucial that the requisite investment is made in the Internet – not only its infrastructure, but also in creating the enabling environment for it to be more fully harnessed and to drive our countries’ economic and social development.

Part of the investment needed is to have the Internet and Internet access an essential requirement in today’s society – similar to having access to electricity, adequate housing and potable water. Today, there is still the impression that Internet access is a luxury service: everyone should not be able to afford it. However, if that is the case, then large segments of the population that are towards the base of the socio-economic pyramid will continue to be marginalised and will not be as prepared as they should be for today’s world and that which is evolving.

4.  Universal Access / Service can support needed projects

The general premise the concept of Universal Access (UA) and Universal Service (US) in telecoms is to support comprehensive access to and the availability of select telecoms services in a particular country. In the Caribbean and the early 2000s, when new telecoms legislation  were being drafted, the focus for UA and US generally was on fixed-line telephony (voice) service. However, policy makers and regulators quickly realised that with the introduction of low-cost mobile service, the game had changed. Voice services no longer required that support; the attention should instead be directed at data, the Internet.

In the ensuing years, UA/US Funds have financed a number of the Internet-related initiatives, for example, getting Internet to  schools, in post offices, health centres, community centres, and even outfitting providing computing devices to schools and even to students. To varying degrees across the region, criticisms have been levelled against the UA/US mechanisms that have been established, as significant sums have been collected from the industry, but too few projects are being implemented, relative to the monies that have been collected.

Summary

In summary, and as the above four points should emphasise, the Internet is already integral to our everyday lives – whether we realise it or not. Although Caribbean policymakers have long recognised the importance of the Internet to drive development, the statements by Prime Minister Holness tend to suggest either the assertions that have been made are not clearly understood, or at worse, they might have just been lip service.

A declaration of the Internet as a basic right, by countries in the region, would eliminate any doubt of its importance. It would most likely spur a policy shift across government and sectors, and foster projects to achieve the goals and targets established. Further, those projects and initiatives could be financed by the UA and US mechanisms that already are in place, and supported by international agencies (as needed), once a clear position has been established.

Image credit:  David Castillo Dominici (FreeDigitalPhotos.net)

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Approach

In our most recent Snapshot: 2016 update of Internet speeds and pricing across the Caribbean, we examined the variation of fixed (wired and wireless) Internet download speeds and monthly pricing for select Internet plans across 18 Caribbean countries. Specifically, and focusing on a sample of ISPs, we:

• determined the best monthly rates for a fixed broadband Internet service plan with an advertised download speed of 2 Mbps, and
• identified the best fixed broadband Internet plan by advertised download speed for up to USD 60.00.

Having examined monthly pricing, this review focuses on the affordability of those Internet plans. The prices captured in the Internet speed and spend exercise have been compared against estimated monthly income, based on per capita Gross National Income (GNI) figures, sourced from the United Nations. The resulting ratios, which have been expressed as percentages, indicate the proportion of an individual’s income that would be spent on the stated plans, and hence indicates the extent to which they might be affordable to the average consumer.

How affordable is Internet service in 2016?

Figure 1, shows the percentage of monthly income that could be spent on an Internet service plan with an advertised download speed of 2 Mbps. Only eight countries have an ISP that offers a 2 Mbps plan. In the countries not shown – Aruba, Bahamas, Barbados, the British Virgin Islands, Cayman Islands, Curaçao, Grenada, Guyana, Saint Kitts and Nevis, and the Turks and Caicos Islands – their ISPs did not offer a 2 Mbps plan, though higher speed ones were available.

Figure 1: Portion of monthly income as a percentage for a 2 Mbps Internet plan in select Caribbean countries as at May 2016 (Source: ICT Pulse)

In 2016, there is still a wide variation across the region in the proportion of a person’s monthly income spent on Internet service, which ranged from 2.2% in Anguilla, to 18.8% in Belize. The proportion of a typical monthly income that could be expended on a 2 Mbps plan, when averaged across the eight countries assessed, was approximately 6.3%.

However, as noted in Snapshot: 2016 update of Internet speed and spend in the Caribbean, most ISPs offer a broad range of Internet plans. Using the global target set by the Broadband Commission for Digital Development that the cost of fixed-broadband services should be less than 5% of monthly GNI per capita, we have sought identify the fastest Internet plan that can be secured for no more than 5% of the average person’s income, as shown in Figure 2.

Figure 2: Fastest Internet plan by download speed for no more than 5% on monthly income in 2016 (ICT Pulse)

First it should be observed that Barbados, Guyana, Saint Lucia and Saint Vincent and the Grenadines are not represented in Figure 2. In Barbados, a 150 Mbps plan could be secured for 5% of monthly GNI per capita, but its inclusion in the graph would unduly skew all other data points. In the remaining three countries, no plan could be secured for 5% of monthly GNI per capita; consumers would be required to spend more to secure the most basic broadband Internet plans.

For the countries in Figure 2, in Antigua and Barbuda, Belize, Dominica, and Jamaica, 5% of the typical citizen’s income would purchase the slowest Internet plan: in Belize, 256 kbps;  in Antigua and Barbuda and Jamaica, 1 Mbps, and in Dominica, 2 Mbps. As previously mentioned, and for about 4.5% of monthly income, the typical resident in Barbados should be able to secure a 150 Mbps plan. Thereafter, residents in Trinidad and Tobago and the Cayman Islands would able secure 60 Mbps and 50 Mbps plans for 3.9% and 4.0 %, respectively, of their typical monthly income.

Is broadband Internet service becoming more affordable?

Since 2014 and across most of the countries reviewed, the portion of monthly income a 2 Mbps Internet plan would consume has been decreasing. Figure 3 highlights the changes over the past year.

Figure 3: Comparison of portion of monthly income as a percentage for a 2 Mbps Internet plan in select Caribbean countries in 2015 and 2016 (Source: ICT Pulse)

Across those eight countries, the average portion of monthly income for a 2 Mbps Internet plan dropped from 14.8% in 2015, to 6.3% in 2016.

However, unlike last year, when we had 16 countries that offered an Internet plan with an advertised download speed of 2 Mbps, this year we only have eight. More importantly, it is becoming evident that 5% of monthly GNI per capita may be insufficient to purchase an Internet plan, or it is just enough to secure the slowest plan. The speed of broadband Internet plans offered across the Caribbean is becoming faster, but the price floor – for the slowest plan – is rising as speeds increase. Hence although we may pride ourselves on the fact that we, as a region, can report faster download speeds, and comparably cheaper rates, it does not necessarily mean that fixed broadband Internet service is becoming more inclusive and affordable for all.

Image credit:  Sura Nualpradid (FreeDigitalPhotos.net)

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