{"id":94168,"date":"2017-03-01T10:24:26","date_gmt":"2017-03-01T15:24:26","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=94168"},"modified":"2017-04-07T16:27:19","modified_gmt":"2017-04-07T21:27:19","slug":"telecoms-caribbean-trouble","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2017\/03\/telecoms-caribbean-trouble\/","title":{"rendered":"Is telecoms in the Caribbean in trouble?"},"content":{"rendered":"
A few Caribbean telecoms firms have been experiencing some challenges, which could be signs to trouble not only in individual countries but also the region as a whole.<\/em><\/p>\n 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<\/a>, you may have noticeed that to varying degrees, many of our telecoms companies appear to be in trouble:<\/p>\n 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 \u2013 either with the company taking the lead, to cut staff for example, or through regulatory intervention to compel certain behaviour.<\/p>\n 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 \u2013 31 countries in 15 years (the last being Tres Network in Curacao in 2016) \u2013 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.<\/p>\n 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\u2013focussed, 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.<\/p>\n <\/p>\n\n
What does this mean?<\/h3>\n
Parting thoughts\u2026<\/h3>\n