In recent years, several Caribbean countries have expressed a desire to increase Internet access and use, with the expectation of improving digital literacy of their citizens, along with their country’s innovativeness and global competitiveness.  One of the initiatives many countries have been eager to implement is increasing the availability of public (free to use) Wi-Fi. Some countries even set the goal of having 100% Wi-Fi coverage, through which to focus their efforts.

It would thus not be any surprise that the topic was raised at the recently concluded Caribbean Association of National Telecommunications Organisations (CANTO) annual Conference and Trade Exhibition, which was held in the Dominican Republic. Through a press release, the Minister for Tourism, Economic Affairs, Transport and Telecommunications in Saint Maarten, Melissa Arrindell-Doncher, expressed an eagerness “to explore possibilities of establishing WiFi solutions for cruise visitors, in collaboration with local providers” (Source: The Daily Herald).

Sint Maarten is part of the Dutch Caribbean, and shares the island it inhabits with Saint Martin, a French colony. Similar to most Caribbean countries, tourism accounts for around 80% of Sint Maarten’s economy, and in 2015, it received around 1.9 million cruise ship passengers (Source:  The Daily Herald), in addition to other visitors, which based on previous years is estimated at at least 500,000 a year (Source: CIA World Factbook). In light of tourism’s importance to the Sint Maarten economy, it thus seems logical for the Minister for Tourism to want to protect it, and even try to add value to the visitor experience.

The incumbent provider’s view

Although the Minister had indicated that she had only had some highly preliminary discussions, Sint Maarten’s incumbent telecommunications carrier, Telem, seemed concerned that her statements were gaining too much traction in the media. TelEm Group Chief Executive Officer, Kendall Dupersoy, was thus quick to respond and appeal for caution:

I am all for making telecommunication services affordable for TelEm Group customers, however, I cannot see how we can benefit by offering free WiFi “spots” to the millions of visitors who come to the island each year, who are currently paying for this service..

… Government should not continue to give away services for free that are still being charged for in other countries and by other carriers, since TelEm Group has the very large expense of bringing internet to the island, and must be able to monetize this while providing cost-effective service to the community, business and visitors to the island…

…If data revenues are also now put at risk by giving away data for free, then any hope of keeping our cost to customers low, offering affordable rates and continuing with programmes such as free fibre telecommunication services for schools and organizations, goes out the door….

(Source: The Daily Herald)

The regulator’s view

Quick on the heels of Telem’s statements, the Bureau Telecommunication and Post, the telecommunications regulator in Sint Maarten, threw in their two cents. Essentially, its position was that according to the United Nations (UN), Internet access has become a basic right that need to be protected and fostered:

.. the statement above from the UN indicates how internet is now being looked at globally. Internet in this day and age must be seen as public utility – just like electricity and water – that should be available & accessible to everyone. Recognizing the need and importance of internet services for our citizens and visitors, to connect to the World Wide Web, should be of the highest priority in every discussion.

(Source: Saint Martin News Network)

The regulator was also quick to point out that free public WIFI is common practice:

It’s being used for education purposes and utilized by millions of students, it’s an essential tool to bridge the digital divide in country, whereby less fortunate people can still visit hotspots to get connected. We’ve seen that it’s being used for disaster relief, whereby residents after natural disaster, still have places to connect to the internet to communicate with family and friends, and last but not least, free public WIFI is the most essential tool nowadays for Tourism, Country, City, and island promotion. Free WIFI zones gives your town a modern look and demonstrates forward thinking

(Source: Saint Martin News Network)

Our view

The above sets out in brief a contention that needs to be resolved in Sint Maarten. Luckily, the incumbent telecommunications carrier seems eager to engage the government on the matter, in the hope of trying to protect its interest, whilst offering some options that could be considered. On the other hand, the regulator is advocating on behalf of the national interest. In addition enhancing Sint Maarten’s tourism product, it argues that free Wi-Fi would have far reaching benefit in education, emergency relief, and could even increase country attractiveness among tourists and the business community alike.

Although these are very early days in the discussions that ought to occur, below are some thoughts, which all parties, both in Sint Maarten, and in the wider Caribbean that might be broaching this issue, should consider,

First, the loss of revenues from introducing free Wi-Fi in high traffic areas, where people have had to pay for service, would be a real challenge to Telem. Further, similar to most major carriers across the region, its revenue base has been eroded considerably over the past several years, thanks to, among other things, increased local competition, lower rates, and the impact of global competition from  over-the top services, such as Skype, WhatsApp, Viber, which compete directly with its voice services.

Second, the UN has indeed been promoting the position that Internet access is a basic right: and it will become increasingly important as countries seek to achieve the Sustainable Development Goals, as it can be a crucial tool and driver to realise the targets set. Having said this, and in many developing countries, especially Small Island Developing States, limited resources (particularly money) are available. It thus becomes a matter of determining priorities, thereafter assigning what meager funds are available, which inevitably means that some things get left behind.

Although many governments might consider increasing access to Internet services a priority, it could find itself way down the totem pole, when matters related to improving health care, education, access to potable water and electricity are also being considered. As a result, whilst countries might support the UN’s view that Internet access being a basic right, they may not be in a position implement the requisite measures at home consistent with that view.

Third, The Sint Maarten regulator is not wrong for trying to foster the economic and social benefits that could result when from more wider access to and availability of free Wi-Fi. Most regulators must not only consider the technical requirements for the delivery of services, but also national interests.

Fourth, Whilst there is an expectation that the ’free Wi-Fi’ service will be free for end-users, it does not mean that the service itself can (or even should) be delivered for free. There is a cost for its provision, and in light of Sint Maarten’s significant tourist numbers, providing a quality service will demand considerable infrastructure, which must be maintained. Hence, similar to street lighting, for which local government get billed, although the facility is installed, and maintained by electricity companies, Sint Maarten (and other Caribbean governments) may need to be prepared to engage in similar arrangements in order to provide free Internet services.

Fifth and finally, although countries might bristle at having to pay for ‘free Wi-Fi’, funds may be available that could be applied to such initiatives: the Universal Access/Universal Service (UAS) Fund for telecoms. Thanks to the regulatory policies adopted, many Caribbean countries made provision for such a mechanism, which could pay for, or subsidise, the delivery of services.

However, one of the challenges countries that had started to collect funds have experienced, is that – for a broad range of reasons – they could not roll out programmes that could use the funds. It therefore means that some countries have already have in hand significant sums, which would be applied to a free Wi-Fi programme. However, once again, there could be a battle of priorities, depending on programmes that are already be financed and their importance and impact on the society at large.

Image credit:  Chris Oakley (flickr)

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Imagine yourself in the following scenario: you need good quality Internet access over relatively prolonged periods, but where you are temporarily located, somewhere in the Caribbean, neither Wi-Fi nor a fixed-line Internet connection is available. Luckily you have a tablet computer that can use a SIM, and so can purchase mobile/cellular data plans to provide the requisite connectivity.

However, since your needs are only short-term – for few weeks – prepaid plans are the only option… but it will cost you. Big time. Not only do you need to surf the Internet, you also need to make video conference calls, and will even use your tablet for leisure, since the TV channels on offer are limited. As a result, your data requirement is significant – at least 5 GB per week, but most likely closer to 10 GB, when video streaming in the evenings and on weekends is considered.

As shocked as that consumption might appear, in the typical United States household, the average consumption is around 190 GB per month, which for a family of four, amounts to about 47.5 GB per person. In most Caribbean countries household Internet access is unlimited (uncapped); hence, many of us have no idea how much data we consume in a month. Further, it ought to be appreciated that outsides of basic telephone calls, all Internet and video demands in the scenario being described are being delivered over the tablet. No other resources or mediums are being used.

If you were to be in that location for several months, or even a year, a postpaid data plan would be the best option, as a 12- to 24-month commitment is usually the norm. Further, a 20 GB to 50 GB per month plans would most likely be available, consistent with your anticipated data demand, and more attractively priced.

Unfortunately, the largest prepaid data plan offered is around 1 GB. More importantly, you cannot load up, say 5 GB in one top-up session, as the system is configured to require you to completely consume 1 GB at a time before topping up, failing which you will reset any outstanding balance you might have, essentially losing money. As a result, you can lose Internet access at any, and the most inopportune, time,  without prior warning, and would thus be scrambling to top up and to minimize the likely disruption.

For those of us who travel regularly within the Caribbean, the above scenario might seem improbable: but it is an experience myself and countless others have had. Having had this experience, it is quite perplexing that prepaid mobile/cellular data services in the region do not accommodate high volume use, but do so via its postpaid plans.

Typically, prepaid plans data plans are more expensive than their postpaid counterparts. Service providers are not losing money when they offer the former. Table 1 highlights a small selection of countries, based on information published on their websites, which would be a subset of the full range of services and plans they actually offer.

Table 1: Select prepaid and postpaid data plans and prices offered by z sample of Caribbean mobile/cellular providers as at July 2017 (Source: Providers’ websites)

The challenge, however, is that based on how the prepaid data plans are designed, it suggests that many Caribbean providers either do not anticipate, or are not prepared to facilitate or encourage, heavy mobile/cellular data use. Accordingly, consumers find ways and means to compensate. For example, although most mobile/cellular data plans are activated on smartphones,  consumers are mindful of overages, and so  eagerly to connect to Wi-Fi when available. Hence, one might find that typical data plan consumption across the region is under 2 GB per month.

Having said this, with the trend towards larger smartphones and phablets, there is not only an expectation, but also a growing demand by consumers, to do more on their handsets.  As a result, their Internet data requirements are increasing. However,  due to the price of data plans (in some Caribbean countries), consumers are still inclined to ensure that most of their connectivity is satisfied via Wi-Fi, resulting in the still limited development of mobile/cellular data plans and services in the region.

Image credit:  Pexels

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You may not have noticed it, but payphones are not as prevalent in the Caribbean as they used to be. Before, there would have been the odd telephone booth in towns and city centres, and near post offices, and hospitals, and even at the offices of the payphone service provider. Now, the only place you might consistently find a phone is at the airport, which hopefully is in good working condition.

In a recent article published in Barbados’ Nation News, the proliferation of mobile/cellular phones was stated as the impetus for the removal of payphones in Barbados. However, with the high mobile/cellular subscription density that also exists in the wider Caribbean region, in countries such as Trinidad and Tobago (around 158 subscriptions per 100 inhabitants, at the end of 2015), Anguilla (around 172 subscriptions per 100 inhabitants), and Suriname (over 180 subscriptions per 100 inhabitants), the decrease in payphones may be attributed to the same reason.

The writer of the Nation News article stressed the importance of payphones in fostering entrepreneurship:

There’s the awareness of email communications, but telephone communication is more instant, urgent, less expensive and needed in the entrepreneurship drive at a time when many are cash-strapped. This dire economic era calls for less expensive communication in employment search and other necessary tasks.

Email, fax and text communications are more expensive, for one must have access to cellular phone, computer, Internet and fax machine.

However, what might be even more worrying are possible assumptions that might be used to justify reduced availability of payphones, for example:

1. Most citizens (or residents) own a mobile/cellular device that can be used as or when needed.
2. Mobile/cellular networks within a country are providing sufficient coverage to provide  connectivity.

First, although most citizens may possess mobile/cellular device, all citizens do not. The elderly and young children are likely to not to have a phone. Further, although a country may have a mobile/cellular subscription density over 100%, which suggests that virtually every inhabitant has a subscription, device ownership among those two cohorts would still be considerably lower than the rest of the population.

Second although the largest and best mobile/cellular communications providers are likely to cover most of a country’s major population centers generally, within those areas some spotty coverage can still exist, where mobile/cellular phones will not work. The situation becomes more acute in more rural areas, where it would be desirable to have another means of communication, if one cannot make a mobile/cellular call.

It is also worth highlighting that mobile/cellular consumers do not benefit from the the overlapping coverage of the various network operators in their country. They benefit -and suffer the consequences of – the network to which they are subscribed. Hence, if a consumer is subscribed to Network A, and Network B has better coverage in a particular area, the consumer is limited by the quality Network A provides.

On the side of the service providers, it must be emphasised that the maintenance cost for payphones is high. Besides normal wear and tear in a public space, exposure to some of he elements, especially if they are outdoors, payphones can also be subject to vandalism, and so frequently, may not be working. Hence, it could be considered a prudent commercial decision to reduce the number of payphones in operation.

However, it could be argued that eliminating, or even reducing the number of, payphones is contrary to the imperatives and challenges experienced by developing countries, such as those in the Caribbean. Under such circumstances, some policy and/or regulatory intervention may be necessary to foster the continued availability of payphones, by among other things, emphasizing the importance of payphones in the society, and being prepared to discuss ways in which their operation could be better funded and managed.

Image credit:  MikeDixson (flickr)

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Last month, Jamaica saw the launch of yet another cable/subscriber TV operations. The Jamaican cable TV market is not necessarily saturated, as there are both major and parish-level operators, but neither is it a greenfield environment awash with opportunities. Generally, and across the country, customers already have (some) choice, and so new entrants to the cable/subscriber TV market have to be savvy and innovative to disrupt the status quo.

ReadyTV, the newest cable/subscriber TV provider in Jamaica, has a very ambitious plan. Currently, it is focussed on establishing a presence in a about six of Jamaica 14 parishes, with the intention of expanding its footprint islandwide in 2018. In a nutshell, the firm wants to target 500,000 households across Jamaica that have no cable TV subscriptions, but more importantly, it will be offering prepaid packages for its cable/subscriber TV services.

Merits of prepaid services in the Caribbean

Prepaid packages are in no way new to the Caribbean. They are widely available and most popularly applied in the mobile//cellular segment of the telecommunications market, where the introduction of affordable service and devices led to explosive growth across the region starting from the early 2000s. Currently, and in all Caribbean countries mobile/cellular communication is the most ubiquitous medium, and this expected to continue into the foreseeable future.

It is thus somewhat surprising that a new firm (ReadyTV) has been prepared to invest solely in cable/subscriber TV, in an age when services on mobile/portable devices and multi-play service business models tend to be considered the most lucrative. Further, several Internet trend reports have noted that streaming video is, and will continue to be, big business. However, in countries, such as Jamaica and the wider Caribbean, where take-up of broadband Internet access is still quite low, building a cable/subscriber TV customer base could be the foundation upon which other services, such as broadband Internet, are eventually provided.

Further, offering prepaid packages for cable/subscriber TV service, is a shrewd move. In Jamaica, similar to virtually all other Caribbean countries, a considerable proportion of the customer base (at least 80%) tend to prefer prepaid services – when the option does exist. Some of the benefits of prepaid services include the fact that there is no contract, and so obligations in terms of a fixed monthly spend, and penalties for early termination of the contract, would not obtain. Second, subscribers pay only for what they are prepared to consume; hence if they require service for a day, a week or a month; or service with a specific cap (for example with respect to data or minutes), it means that they can better match the package(s) they select to their needs at any given point in time. Finally, prepaid packages offer customers better budgetary control. They pay upfront for the package they want, use it as they wish, and have no surprises at a later date by being saddled with a bill that they may not be able to afford.

Final thoughts…

In summary, and in offering prepaid cable/subscriber TV packages, ReadyTV is positioning itself to cater to a segment of the Jamaican population that has not been the focus before. However, in a wider context, it must be highlighted that in other countries, and even among other segments of the Jamaican population, take-up of cable/subscriber TV is on the decline, in favour of video streaming and Video-on-Demand.  

Having said this, Jamaican still enjoy viewing local content, such as such as the morning progarmmes and the evening news, and so might still be prepared to have even the most basic cable/subscriber TV package. Further, with the still limited deployment of high-speed broadband Internet service islandwide, the wholesale substitution of the cable/subscriber TV with Internet-based services may still be a few years away.

Image credits:  Charles Wiriawan, flickr

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In the news last week were reports that two Ministers of Government in Trinidad and Tobago had racked up mobile/cellular phone bills of totaling around TTD 150,000 (over USD 22,000), in separate work-related trips to the Bahamas and Tobago (Source:  Caribbean News Now). As expected, there is uproar in Trinidad and Tobago, as the bills are excessive for what were short business trips. More importantly, tax papers are ones footing such extravagance, especially in a time when the need for prudent government spending has been emphasised.

As much as we might be somewhat amused and bemused by what appears to be lavish behaviour of Government ministers to incur those charges, sadly, it can happen to almost anyone, especially those who are postpaid mobile/cellular subscribers. Postpaid subscribers tend to get billed at end the month – after the charges have been incurred – which can be an unpleasant surprised, even with seemingly modest roaming activity whilst away from home.

It is therefore important to highlight that roaming charges are not incurred solely on mobile/cellular calls, but more crucially on data. For example, in the Trinidad and Tobago example, Minister for Tourism, Shamfa Cudjoe, racked up roaming charges to the tune of approximately USD 8,740 (TTD 59,000) in her visit to the Bahamas. Below is a breakdown of those charges:

• Phone calls – USD 162.96  (TTD 1,100)
• Roaming data – USD 7,498.75  (TTD 50,616.61)
• Value Added Tax –  USD 972.17  (TTD 6,562.13)

In the Bahamas, roaming data rates are around USD 9.33 (TTD 63.00) per megabyte (MB), which unequivocally, is extremely high. However, the Minister consumed over 803 MB during her visit!

Although it could be argued that most people consume about 200 MB of data per day; hence 800 MB by the Minister is not excessive, in a situation where one is roaming, it is. More importantly, there may have been no modification of mobile/cellular phone behaviour or use within the context of roaming, and ultimately being subject to premium charges for that facility.

Below, we outline five ways to avoid, or at the very least minimise. Your mobile/cellular roaming charges when you travel.

1. Enable airplane mode

Although on flights we might think the cabin crew is being overzealous when we are told to put our electronic devices in airplane mode, it is one of the easiest and best ways to reduce the chances of being (unwittingly) connected to networks when we travel, and incurring roaming charges.  When airplane mode is enabled, cellular services — both voice and data — are turned off, as well as Wi-Fi, Bluetooth, GPS and other location services.

However, as appropriate or necessary, we can disable airplane mode, and manually enable Wi-Fi to connect to secure wireless spots, or even to permit roaming. Ultimately, we remain in control over how and when our phones connect to foreign (non-home) networks.

2.  Disable data roaming

If keeping your phone in airplane mode is a bit too draconian, or impractical, for example, if Wi-Fi is readily available, then explicitly disabling data roaming and/or mobile/cellular data is recommended. In doing so, your phone will not automatically switch to mobile data when Wi-Fi is absent – which might be desired when you are on your home network, but can be incredibly expensive when travelling or off your home network.

3. Use Wi-Fi only

Depending on the purpose of your trip outside the range of your home network, it may be possible to use Wi-Fi exclusively whilst away. Many hotels, especially business hotels, offer free in-room Wi-Fi, and affordable prepaid Wi-Fi services are available in many countries, which can welcomed alternative.

4. Buy a roaming package before leaving

Many Caribbean mobile/cellular providers offer a roaming packages, especially when travelling to the United States. These packages may comprise a bundle of calls, text messages and/or data for fixed priced. Having said this, the overage rates – the rates payable outside of the bundled limits – can be expensive, and it can be difficult to gauge consumption, especially for data. However with prudent management and choosing the package that best suits your needs, it is possible to avoid the surprise of coming home to a large roaming bill, which might otherwise be the case.

5.  Buy a local SIM

Depending on how long you will be away from base, and what your communication demands might be, it may be a good idea to consider purchasing a local SIM card and a short-term voice and/or data package that meets your needs. Many countries now offer low-cost prepaid SIM cards; along with competitively priced voice and data packages; which can make this option considerably more attractive – and cheaper – than roaming from home.

Image credits:  hjl (flickr)

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At a recent talk in Barbados, in which he was discussing the digital society as the next step in the Caribbean, President of Cable & Wireless’ Caribbean operations, Garry Sinclair, noted that although his firm is focussed on offering bundle packages, take-up has been limited:

We are definitely focused on creating more and more bundled propositions and delivering those propositions to customers. But the fact that half of our customers are still on single play means that we have not migrated as many of them from their single play propositions to double and triple play.

(Source:  Nation News)

Whilst generally we might appreciate that securing a bundled package, regardless of the field, can be better value for money, in practice, there can be broad range of reasons why customers do not gravitate to those options. Below, we highlight four.

1.Most customers prefer prepaid services

If we have a choice, the majority of telecoms customers in the Caribbean prefer to be prepaid subscribers. We pay in advance for the service we need, which helps us to better manage our budget, and not be caught out by a prohibitively high bill we cannot afford to settle. Of the telecoms services available, carriers in the region have only offered those delivered on mobile/cellular devices, such as telephone and broadband Internet, as prepaid services. Those typically delivered to a household or premises, such as fixed-line telephony and subscriber television, traditionally have been postpaid services.

Currently, there may not necessarily be any serious technical barrier to telcos being able to offer fixed-line telephony and subscriber television as prepaid services. Yes, some reconfiguration of the infrastructure and operations to support prepaid billing may be necessary, but such adjustments could make multi-play bundles more attractive to budget-sensitive customers.

2.  Multi-play packages can be expensive

Question: why don’t all of us shop at bulk-buy stores? Although there might be several answers, the most common might be the fact that although you benefit from volume and economies of scale, invariably your final bill is considerably more than at a traditional supermarket. Similar reasons can apply to multi-play packages.

Frequently, the multi-play rates payable tend to be higher that many customers are comfortable with. However, when a customer totals all of their separate receipts for a month (e.g. Internet and subscriber television) they might be actually paying as much, or even more, than for a multi-play package, which also includes fixed-line telephony service.

3.  Services offered by a telco of varying quality

With the eroding competition in the region, this point may not be as evident as it had been in the past. However, essentially, the quality of the services offered by many of the telecoms carriers across the region was uneven. Some are better at subscriber television than others; some mobile/cellular carriers offer better coverage in particular areas than others. As a result, customers may be more inclined to cherry-pick their services, based on the quality of the actual service being offered by specific telecoms carriers.

4.  The specifics of the bundle do not meet our needs

Finally, it may not be surprising that typically, multi-play bundles are designed for the more upwardly mobile/affluent segments of our population. Unfortunately, those segments are small, but are most likely lucrative. However if, according to Garry Sinclair, carriers wish to increase take-up of multi-play packages, the constituents of those bundles – to make them more appropriate to the needs (and price points) of other demographics – may need to be adjusted.

Image credit:  poppet with a camera (flickr)

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Although it does no longer appears to be as topical an issue as it had been five years ago, when the announcement was first made, the pool of Internet Protocol version 4 (IPv4) addresses, used to identify devices on a network, is near exhaustion. This 4-byte (32 bit) format, which is written as, for example, 255.255.255.255, can generate approximately 4.29 billion (4.29 x 10ˆ9) unique addresses. However, thanks to, among other things, the exponential increase in Internet users that has occurred worldwide over the past 25-plus years, plus the increasing number of devices that must be connected, the pool is inadequate to meet all of those demands.

Currently, and with the exception of the Regional Internet Registry (RIR) for Africa, all other regional registries have depleted the number pools they had been allocated, as shown in Exhibit 1.

Exhibit 1:  Actual and Projected RIR Exhaustion Dates (Source:  IPv4 Address Report)

Well in advance of this exhaustion, a new format was introduced: Internet Protocol version 6 (IPv6). Unlike the 32 bits of IPv4, IPv6 addresses comprises 128 bits, which means that it can offer an almost limitless supply (approximately 3.4 x 1038) of unique addresses. However, what has been the adoption of IPv6 in the Caribbean?

Exhibit 2:  Rate of IPv6 adoption in select Caribbean states as at 27 February 2017 (Source:  Akamai)

From Exhibit 2, very few Caribbean countries – only Saint Barthélemy, Suriname, Dominican Republic, Puerto Rico, and Trinidad and Tobago, out of the 30 listed – have made any noticeable progress in adopting IPv6. It is also important to highlight that Trinidad and Tobago has been listed third globally, behind Belgium and Greece, with respect to IPv6 adoption.

Having said this and emphasising the fact that in the Caribbean the IPv4 number pool has been exhausted, why hasn’t IPv6 made any inroads as yet? A likely, and most overwhelming, reason might be that IPv4 is still being widely used; hence Internet Service Providers (ISPs) in the region are prepared to delay introduction of IPv6 for as long as they can. Further, many organisations might not yet fully understand the IPv6, and accordingly, how to integrate it into their existing systems and processes.

It must be highlighted that IPv4 and IPv6 are not compatible and so operate independent of each other. However, although IPv4 is popular, and may be used well into the foreseeable future, its long-term viability is not tenable. Hence although ISPs might be prepared to ‘kick the can down the road’ for as long as possible, when adoption IPv6 becomes critical, there will be no margin for error in the transition.

Image credit:  Philip Dehm (flickr)

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if you have been keeping an eye on the latest ICT/tech news developments over the past last week or so, such through our roundup published on Monday, you may have noticeed that to varying degrees, many of our telecoms companies appear to be in trouble:

• In the Bahamas, the incumbent telecoms carrier, the Bahamas Telecommunications Company (BTC) has been resisting mobile number portability (Source: Bahamas Weekly), especially since competition in that segment is emerging with the launch of Aliv, the mobile/cellular brand operated by new entrant, NewCo2015 Limited.
• In Guyana, the incumbent carrier, Guyana Telephone and Telegraph Company (GTT) is planning to cut around 120 people, which the local union is challenging (Source: Kaieteur News).
• In Saint Kitts and Nevis, multi-play provider, The Cable, in which that Government is the majority shareholder, has been challenged to meet its expenses, such as compulsory licensing fees for television content, whilst its staff is demanding a pay increase (Source: West Indies News Network).
• Finally, and the most glaring is Digicel, which operates in 31 markets worldwide including 26 in the Caribbean. The firm is planning to cut around 25% of its global staff, starting March 2017. That initiative is part of a wider programme to make the company more efficient, as it needs to figure out how to service, reportedly, over EUR 6.2 billion in debt (Source: Daily Express).

What does this mean?

To an appreciable extent, Caribbean telecoms landscape is reflecting the phenomenon that has become the norm in the wider business environment: the need to more efficient operations to realise cost savings, and to improve the overall viability and profitability of a business. In countries, there had been little or no competition, especially in the mobile/cellular segment, such as the Bahamas and Guyana, the incumbent carrier was buffered from those effects. However, with competition emerging, that status quo is changing – either with the company taking the lead, to cut staff for example, or through regulatory intervention to compel certain behaviour.

The case of Digicel is a bit unique. It was not the incumbent carrier, but rather the new entrant in the markets in which it now has a presence. However, some experts have opined that the company expanded to fast – 31 countries in 15 years (the last being Tres Network in Curacao in 2016) – and took on huge loans through which to do so. Soon, the chicken will be coming home to roost. Those debts need to be paid. The Initial Public Offer (IPO) the company sought to launch on the New York Stock Exchange in 2015, was an attempt to begin to raise the cash needed, but projections were that the share price would be considerably less than the firm expected, and the IPO was abandoned. However, that also meant that the company still needed to find a way to address its dilemma.

Parting thoughts…

Ultimately, these recent developments speak to the continually changing telecoms environment in the Caribbean, and the growing sophistication of our markets. All service segments must be operated efficiently, and hopefully profitably. Further, the business must also be customer–focussed, in order for firms to maintain its market share, in light of competition and the growing ease with which customers can change their service providers. Finally, this changing environment may also result in even more mergers and acquisitions in the future, as companies seek to capitalise on savings and efficiencies that can be realised from improved economies of scale and scope.

Image credits:  Peter Jozwiak (flickr)

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Over the past two years or so, the term, drones, has become more widely known. They are not only commercially available for personal use, but many businesses, especially those that ship goods, such as Amazon.com, Fedex, DHL and UPS, are also exploring the use of drones to make deliveries to their customers. With all the excitement about drones, generally, the question must be asked when might we, here in the Caribbean, experience more extensive use of drones?

What is a drone?

Unmanned Aerial Vehicles (UAVs) or Remotely Piloted Aerial Systems (RPAS), which more colloquially are known as drones are unmanned, yet remotely controlled, aerial devices. Radio controlled aircrafts have been in use by the military, since the 1950s, to assist in fighter pilots combat training. Thereafter, they also evolved into recreational use, as model airplanes that are popular with children and hobbyists alike.

As remotely controlled devices typically, drones operate in the 2.4—5.8 GHz band, which according the frequency band plan for the United States is reserved for Wi-Fi. However, some of them use frequencies in the 900 MHz band, which is also a widely used band for mobile/cellular communications.

Key benefits and applications

In being unmanned – without a human pilot – drones are especially useful in situations where manned flights are considered too risky or difficult. Additionally, using drones can be a more cost effective option than manned aircrafts, particularly when the routes are simple and covering relatively short distances. Accordingly, drones are widely used for aerial photography; land surveying, and for recreational purposes. Also, increasingly, they are being used in logistics and for making deliveries.

Will drones become ubiquitous in the Caribbean?

In a nutshell, extensive drone use in the Caribbean is still several years away. Currently, there are concerns on many fronts: telecoms, security, and even civil aviation. With regard to telecoms, and although the devices tend to use spread spectrum technology, the small size of many of our countries, and their close proximity to each other, means that their signal power to maintain control of a drone, could be a possible source of interference. In matters related to security and civil aviation, the concerns tend to be about such devices being in unauthorised areas.

As a result, the policies that would guide the importation and use of drones in most Caribbean countries are still being developed. As it currently stands, and across most of the region, drone importation is strictly controlled – either they have been banned outright, or special permits (or authorisations) must be secured to permit them for specific uses.  It therefore means that we still have a way to go before drones – and the use of drones – gain any significant foothold in the region.

Image credit:   Richard Unten (flickr)

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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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