Telecoms Services Sector in the Caribbean Derek Browne Information Technology Specialist CIF November 5, 2007

AGENDA Introduction Mission CRNM Telecoms Study Key Areas of Focus State of Infrastructure and Connectivity Market Access Factors Impeding Development Recommendations

Introduction Established in 1997 by the Caribbean Community (CARICOM) Governments, the Caribbean Regional Negotiating Machinery (CRNM) is the principal regional intergovernmental organisation mediating the Caribbean’s encounter with the global trading system The CRNM is responsible for developing and maintaining a cohesive and effective framework for the coordination and management of the Caribbean’s external trade negotiating resources and expertise

Mission Our mission is to help Member States maximize the benefits of participating in global trade negotiations by: –Providing sound advice –Facilitating the generation of national and regional positions –Coordinating the formulation of a cohesive negotiating strategy –Leading negotiations where appropriate The membership comprises of the 15 independent states of CARICOM, as well as Cuba and the Dominican Republic.

CRNM Telecoms Study Assessment of the Telecommunication Services Sector in CARICOM: Convergence Issues at the Regional and International Level’ (

Key Areas of Focus How easy and affordable is it for the people and businesses in CARICOM to access telecommunications infrastructure and use telecommunications services The regulatory, administrative and other barriers to private sector investment that exist The state of CARICOM’s ICT policy setting environment and the need for harmonized policy and regulation

State of Infrastructure and Connectivity The region has experienced a significant increase in mobile penetration, however, fixed line and especially copper local loops are still the predominant means of accessing the Internet There has been limited deployment of wireless access technologies While there has been significant investment in fibre-optic submarine cables (Fibralink Jamaica, Antilles Crossing, Columbus and Global Caribbean Network (GCN)), the “last mile” has until now been problematic Leased circuit prices are still excessively high due to limited access to submarine fibre optic cable systems

Fiber Systems

State of Infrastructure and Connectivity (2) Interconnection charges are in line with international benchmarks Most CARICOM countries and their operators are still connected to the outside world by a sole operator (the incumbent) International calling rates are still high compared to North America and Europe Satellite coverage for the region is good and available but remains an expensive option and therefore not usually considered

Market Access Liberalization in the CARICOM Telecommunications markets is near complete in most countries with generally three or more mobile operators licensed in each country New entrants: Foreign entities and not local investors have been able to fully profit from the liberalization process as both foreign investors and the incumbent have the resources Dominance of incumbents particularly on the fixed network

Factors Impeding Development Access to Infrastructure –Local wire line access networks continue to be dominated in most countries by one company, the incumbent with its copper, microwave and fiber networks –Access to International circuit capacity remains a serious problem in all CARICOM. Most member states remain connected to the outside world by a single cable controlled by the same operator Pricing Issues –The lack of effective competition and limitations on access to both local and regional networks results in high prices –Business and individual users pay exorbitant prices for international calling, internet access, leased circuits, interconnection and toll free numbers

Factors Impeding Development (2) Regulatory, Administrative and other Barriers to Investment –Absence of well defined and publically known timetables and conditions for the transition from a monopoly to a fully liberalised market –Inadequacies in licensing, interconnection, facilities sharing –Lack of information and procedures about the number licenses to be awarded, conditions for awarding licenses and timeframe for decisions to be rendered CARICOM’s Fragmented ICT Policy Setting Environment –Adhoc ICT agendas and initiatives nationally and regionally –States continue to liberalise and open markets to foreign suppliers in a unilateral manner –No formal liberalisation process of telecoms under CSME

Recommendations Efficient and affordable telecommunications services necessary to maximise the benefits ICT to CARICOM citizens and firms, and liberalisation of the sector in the CARICOM Single Market and Economy (CSME) Policies, laws, and regulations for ICT and telecommunications in CARICOM Member States should be harmonized (a regional coordinating body) The private sector leadership should be empowered to shape and influence policy on regional integration and trade as it relates to ICTs and telecommunications A market access platform should be established for local commerce and cross-border trade with respect to E- commerce, IPR and Financial Services

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