How will regional regulators respond to CWC's acquisition of Columbus?

Can telecommunications regulators from across the Caribbean see beyond their national interests and present a unified regional response to a common challenge? The recent announcement by Cable and Wireless (CWC) of its proposed US$3 billion acquisition of Columbus International could prompt them to try. If approved, the deal will make CWC the Caribbean’s largest wholesale and retail broadband service provider. But the acquisition requires regulatory approval in Trinidad and Tobago, Jamaica and Barbados.

Against this backdrop, the Caribbean Telecommunications Union (CTU) is convening a special meeting of regulators, economists and industry experts, in an effort to forge region-wide consensus around the regulatory issues arising from the proposed deal. The CTU Secretariat hopes, after the two-day meeting, to be able to advise Caribbean Community (Caricom) heads on measures to be taken to mitigate against the expected fallout from the CWC acquisition.

National regulators, such as the Telecommunications Authority of Trinidad and Tobago (TATT), and sub-regional regulators, such as the Eastern Caribbean Telecommunications Authority (ECTEL), Jamaica's Office of Utility Regulation, Barbados' Fair Trading Commission and the Bahamas' Utilities Regulation and Competition Authority, have been invited to take part in the high-level meeting, alongside invited representatives from the CTU member states.

Earlier this week, ECTEL issued a statement warning that the proposed CWC-Columbus deal could result in a negative impact on competition, and reduce choice by consumers of both services and service providers.

The sub-regional body said increased monopolisation could “erode the gains made by the liberalisation and create challenges for the entrance of new service providers.”

Both CWC and Columbus could be in breach of their licenses if they engage in activities, which can unfairly prevent, restrict, or distort competition, ECTEL said, adding that it would work with other Caribbean regulators to advise member governments on the pressing issue.

​The announcement of CWC-Columbus deal, on November 6, followed a joint venture entered into by both companies in late 2013, through which they agreed to share regional subsea fibre assets. News of the development sparked concerns that the deal could return several Caribbean territories into monopoly or near-monopoly markets for telephony, cable TV and broadband services.

The upcoming CTU regulatory forum, which takes place on December 10 to 11, will also seek to address other relevant issues, such as the removal of voice and data roaming charges, number portability, over-the-top services, open reporting and social investment by telecom providers. The need for stronger, more coordinated regional regulation practices was highlighted in July of this year, after mobile phone users in Haiti, Jamaica and Trinidad and Tobago were affected by a move by major regional mobile providers LIME (a CWC subsidiary) and Digicel to block access to OTT telephony services—including several popular Voice over Internet Protocol (VoIP) applications.

US$25 million to harmonise Caribbean telecommunications

Governments of the Eastern Caribbean have taken a significant step toward harmonising their countries’ investments in telecommunications infrastructure. A regional project, called the Caribbean Regional Communications Infrastructure Programme (Carcip), is bridging the gaps in regional broadband communications development.

High-ranking officials from St Lucia, Grenada and St Vincent and the Grenadines are met in Port-of-Spain this week with officials from the Eastern Caribbean Telecommunications Authority (ECTEL) and the Caribbean Telecommunications Union (CTU) to share insights into how each country is tackling the region-wide challenges associated with telecommunications infrastructure deficiencies. The high-level meeting was organised by the CTU as part of CARCIP.

“On the surface, Carcip targets the establishment and improvement of the region’s physical communication networks. But the real issue is the major benefit that greater quality and affordability can bring to the region’s governments, health centres, schools, universities, national emergency communications networks and so on,” said Selby Wilson, telecommunications strategist, CTU.

A total allocation of US$25 million is being disbursed through the Carcip programme, including loans to the three countries and a grant to the CTU, the Trinidad-based organisation co-ordinating the project. Carcip takes a comprehensive approach to the development of countries’ broadband communications infrastructure. The World Bank-funded project addresses gaps in submarine cable infrastructure and landing stations, domestic backbone networks and national Internet exchange points (IXPs).

Participants at the meeting this week included Jacinta Joseph, Permanent Secretary in the Ministry of Communication, Works, Public Utilities, Physical Development and ICT, Grenada; Philip Dalsou, Permanent Secretary in the Ministry of the Public Service, Information and Broadcasting, St Lucia; Roxanne John, Carcip project coordinator, Ministry of Telecommunications, Science and Technology, Office of the Prime Minister, Saint Vincent and the Grenadines; and Embert Charles, managing director, ECTEL.

“Bringing the territories and the regional institutions together at the table is just the first step. The ultimate aim is a comprehensive, region-wide approach to the development of the telecommunications networks of the Caribbean. The lessons that we learn here will be of real value to the entire region,” said Junior McIntyre, the project co-ordinator for the CTU.