BUSINESS TECH
BEYOND
CONNECTIVITY The Future of Caribbean Broadband
D
igital dreams are too often shattered by unreliable broadband connectivity. Attempts in the education sector to integrate technology into the classroom are frustrated when broadband speeds are too slow. Similarly, business and government sector attempts to realize the benefits of video conferencing, mobile apps and cloud computing fall short when broadband service is inconsistent or unaffordable. Broadband is the fuel for the modern, digital economy. Yet for many countries, devising a structured approach and to national broadband development remains quite a challenge. Studies have shown that the Internet and the broadband access that connects us to it, generates tangible economic value for almost every sector at a national, regional and global level. Investments in broadband at a national level have also been linked to growth in Gross Domestic Product (GDP). In the Caribbean, however, reports from agencies such as the Inter-American Development Bank and the International Telecommunications Union reveal that progress in providing faster broadband access varies significantly across the Caribbean. This is in spite the fact that the economic and social benefits are well acknowledged. Further, even though broadband proliferation is expanding rapidly in Latin America and the Caribbean, the region still lags behind the world’s most advanced nations in terms of coverage, access and adoption of information and communication technology services delivered through fast networks. BusinessFocus Nov /Jan
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Connecting Broadband to Development By: Bevil Wooding
There are also great differences in the level of broadband planning and implementation across the region. States is facing challenges in achieving greater coverage and uptake. In fact, the majority of English-speaking Caribbean countries have no documented national broadband plan at all. Even among the few countries with a published national plan for broadband development, implementation is inconsistent at best.
Market Realities
At the regional level, CARICOM has developed a Digital Strategy master plan, and more recently has been promoting the notion of a Single ICT Space. However, neither initiative has sufficient detail, resourcing, or momentum to guarantee coherent implementation. For instance, there are no official broadband speed definitions or broadband penetration targets for the region. One reason for this dilemma is that integration across the critical areas of infrastructure development, consumer pricing, and affordable access to devices remains largely a national issue. With most countries recording cellphone penetration rates in excess of 100 percent, mobile-broadband has been touted as the future of ubiquitous broader
access. Mobile broadband, however, is no panacea. Conversion of spectrum allocation, a necessary technical prerequisite to achieve faster mobile speeds, has been slow across much of the region. This highlights the continued importance of fixed broadband networks as a supplement to mobile networks. Although prices have been falling in recent years, cost remains a major hurdle for consumers. Broadband users in Caribbean pay far more for slower service than consumers in OECD countries, where households have more disposable income. In some cases, high trade tariffs make imported access devices such as computers, smartphones and wireless devices more expensive for businesses and individuals, further limiting the expansion of broadband usage. These market realities have the combined effect of creating unhealthy turbulence for consumers, innovators and entrepreneurs to realize the promise of the digital economy.
Capacity to Execute
A more holistic approach that must be taken for the region is to keep pace with global trends. Each country starts with different competitive advantages and