The Caribbean Telecommunications report considers 10 diverse markets in the region. The markets include both highly developed countries such as Barbados and lesser developed markets such as Haiti. The growth potential in the Caribbean varies across the countries although lack of competition is not always a guarantee of low telecoms penetration. One of the main issues facing developed Caribbean markets is that of future growth as penetration rates have passed 100% in several cases leaving less scope for future growth and fewer opportunities for new operators. Regardless the Caribbean markets remain dynamic with plenty of opportunity in the broadband market as demand for these services expand. New data from France’s Arcep which regulates the telecoms markets in Guadeloupe and Martinique brought the total number of markets above 100% penetration at the end of 2007 to four. Only Haiti and Cuba have penetration rates below 50% with Cuba’s market yet to reach 2%. The remaining four markets record penetration rates above 60% with two forecast to pass 100% penetration by the end of 2008.

The new data for Guadeloupe and Martinique sees these two markets at the head of our Business Environment Rankings for Q308. The faster than expected growth in the market as well as the licensing of two 3G operators and an additional 2G operator in each market has put these two at the top of the table. Another significant change to the rankings has been the Bahamas’ jump from ninth place to sixth. Cuba remains at the bottom of the rankings despite the government allowing ordinary Cubans to acquire mobiles for the first time. However, with cost of a mobile handset at six-times the average government monthly salary services are still out of the reach of many and we have only cautiously upgraded our forecasts going ahead. Pan-Caribbean operator Digicel announced it had 6.5mn subscribers in March 2008 after recording exceptional growth in the year to March 31 2007. Digicel’s subscriber base increased 39.3% y-o-y while its Caribbean rival Cable & Wireless (C&W) saw decreases in its market share in Jamaica, its main mobile market. As more competition has entered the market C&W has seen its dominance worn away and has increased its focus on broadband services in order to maintain growth. The company also announced a restructure in March 2008 that will see a single unit created for its Caribbean operations. This should help the company focus on its key markets and make gains from synergies across the region.