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June 12, 2008
Broadband Offer from CATV Operators Threatens Incumbent's DSL Stronghold in the Caribbean; High Tariffs Deter Mass Market Adoption of Wireless Broadband Technologies
Competitive pressure from companies like Flow Jamaica will force Cable & Wireless and other incumbents to be more aggressive in their broadband strategy by lowering tariffs while increasing the speed of their DSL offer. The continuous launch of UMTS/HSPA services throughout the region represents an imminent threat to wireless broadband providers such as WOW in Trinidad & Tobago or Wireless Curacao.
Buenos Aires - May 19, 2008 - Signals Telecom Consulting, the leading Latin American & Caribbean telecommunications markets consulting firm proudly unveils the 3rd Edition of its "Analysis of Broadband Rates in the Caribbean" market study. This report is part of a series of investigations on the South American, Central American & Caribbean region. The Caribbean study analyzes the price strategies of 52 broadband operators in 19 Caribbean markets and Bermuda.
The study results show that incumbent telecom players are reacting to the lower rates offered by CATV operators. Whereas during the 2Q07 cable modem accesses were in average 14% less expensive than DSL, during the 1Q08 the gap was decreased to about 5%. "Not all CATV operators are behaving like Flow in Jamaica or Trinidad & Tobago. For example, Marpin's cable modem offer in Dominica is not competitive against Cable & Wireless DSL provision in that market," stated Luciana Logioco, Junior Analyst at Signals Telecom Consulting and main author of the report.
"Albeit slow in coming to place, the launch of UMTS/HSPA throughout the Caribbean will negatively impact the revenues of wireless broadband operators. that in many instances will have to face a completely new broadband provider in their market. What we now have in the Caribbean is a slow evolution from price-centric competition towards differentiation through service packaging and the provision of value added services," concluded Jose F. Otero, President of Signals Telecom Consulting and co-authors of the report.
