increased by as little as 0.6% in the Cayman Islands, to almost 20% in Guyana.<\/li>\n<\/ul>\nAcross the entire group of countries and over the last two years, and on average, there would have been a net increase <\/b>in monthly spend ranging between 1.24% and 2.02% across all baskets of services.<\/p>\nFinal remarks<\/h3>\n
First, although relatively nominal in most instances, it is interesting to note that mobile\/cellular rates have been increasing<\/strong> across the Caribbean. More importantly, the increases are occurring in countries where there is competition \u2013 i.e. where there are at least two players in the market \u2013 and not in the countries where monopolies still exist and consumers have no choice of providers.<\/p>\nA much-touted justification by economists for introducing competition is the lower prices that would result. Although that might be the case when competition begins, that appears to be no longer true in several Caribbean countries, many of which liberalised their telecoms sectors over 10 years ago.<\/p>\n
Second, in this assessment, the greatest decrease in monthly spend was recorded\u00a0in Jamaica. However, in May 2012, Jamaica, similar to\u00a0most countries examined, had realised increases in monthly spend (between 2% and 3%) since 2011. Since our May 2012 snapshot, and due \u00a0amendments in the Jamaica telecoms legislation, the regulator, the Office of Utilities Regulation, established interim mobile termination charges, which decreased the charges payable between the carriers by up to 45%. In turn, LIME in particular, quickly reduced its rates, which was subsequently\u00a0mimicked by Digicel, and so is reflected in reductions in monthly spends that have now been calculated.\u00a0(Note:\u00a0 We published a number of posts last year on the interconnection contentions that were occurring in Jamaica. See Has Digicel been outmanoeuvred by the OUR?<\/b>; Will the Jamaican regulator be successful in implementing interim interconnection rates?<\/b>; and Will the proposed amendments to Jamaica\u2019s Telecoms Act improve LIME\u2019s competitiveness?<\/b>, for further details.)<\/em><\/p>\nThird, currency exchange rates have remained relatively constant since May 2011. Hence, they would not have been a significant contributor to the changes in monthly spend that have been reported.<\/p>\n
Finally, it is again emphasised that it is easy to overlook the seemingly small changes in monthly spend, and even the actual\u00a0rates you are paying, but they do add up. As was noted in last year\u2019s snapshot:<\/p>\n
\u2026the impact of those changes might not be readily apparent when dealing with smaller figures. For example a 10% increase in a calling rate of $0.10, is $0.11, which might easily be overlooked. However, the same 10% increase in the amount spent per month, say $50.00, is $55.00, which adds $60 to your bill per year!<\/em><\/p><\/blockquote>\n <\/p>\n
Stay tuned for our 2013 update of the affordability of mobile\/cellular service later this month!<\/p>\n
_____________<\/p>\n","protected":false},"excerpt":{"rendered":"
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