This study highlights the fact that the current crisis in global financial markets, the high levels of mobile tele-density and the limited number of inhabitants living in the majority of the Caribbean markets will force regional operators to seek out new revenue sources. Within this new competitive dynamic, broadband and value added service offerings will become a priority for operators in various Caribbean marketplaces. "Puerto Rico is without a doubt the most sophisticated 3G market in the region. Currently, there are four operators having commercial 3G offerings in this market with a fifth, T-Mobile, launching 3G services within 12 - 18 months. Nevertheless, it will b e Cable & Wireless upcoming deployments of UMTS/HSPA that will expand this technology across the region. Signals believes that Digicel's decision to roll out WiMAX for its nomadic wireless broadband offering in the Cayman Islands will be difficult to repeat in other Caribbean markets. This is because, as compared to UMTS/HSPA or CDMA2000 EV-DO, WiMax lacks both economies of scale and a broad range of handsets. Moreover, as in Latin America, the Caribbean is a handsets market," says Jose F. Otero, President of Signals Telecom Consulting and report author.

"Because the 3G service offerings deployed using UMTS/HSPA technology are largely based on wireless broadband access and oriented to the corporate and high disposable income segments, they have initially emulated the behavior of EV-DO networks. This implies measured growth via users already having fixed broadband access who use 3G as a mobile access alternative. Here, the main reason for marketing this service is the value users place on mobility. Due to the impending drop in the number of European and American tourists visiting the region, however, many operators that have deployed 3G services via CDMA2000 EV-DO will begin to contemplate using the same for offering local services. Thus, said operators will not longer v iew these networks just as means of generating international roaming revenues. This is what newcomer TSTT has done in Trinidad & Tobago," explains Otero.

In this type of environment, 3G services will only begin to experience significant levels of growth in the Caribbean as from 2010. This will be "the result of broader geographical coverage, an increase in the number of operators that will have completed commercial UMTS/HSPA launches and an improved handset offering. All of this will allow operators to reduce user service acquisition costs as well as add on more robust voice and VAS type offerings oriented to personalization contents," concludes Otero.