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May 18, 2009
Analysis of Broadband Rates in the Caribbean
From Signals Telecom Consulting:
At year-end 2008, Cable Modem subscriptions charge that is 48.68% and 61.38% more economical than DSL and fixed wireless accesses alternatives respectively.
Maximum average speed in the Caribbean is 3 Mbps. However, many operators provide above average downlink speeds throughout the region, including: Cable Bahamas (9 Mbps), Caribbean Cable Communications (6 Mbps, Anguilla), Flow Communications (10 Mbps, Jamaica), LIME (8 Mbps, St Kitts & Nevis), and TSTT's Blink (10 Mbps, Trinidad & Tobago) among others.
The principal impact of increased competition in broadband offer has been a reduction in rates and greater service availability. Operators such as Digicel and Flow Communications will be seeking ways to increase their differentiation by means of the launch of value-added services, local content and alliance with local service providers in each market. This will enable them to successfully confront any future packaging of DSL services on UMTS/HSPA by operators such as TSTT, LIME and UTS, among others.
At 4Q08 Signals points out that the greatest concentration of service offer takes place in the 1 and 2 Mbps speed segment, whereas in 2007 it was in 512 Kbps. This represents an encouragement by operators for a more intensive use of access by users.
Furthermore, it can be seen that the presence of LIME in most of the islands of the Caribbean and its concern regarding the possibility of the entry of new competitors is driving that operator to provide plans with higher minimum speeds (1 Mbps), causing a greater market concentration at that speed.
