Over the past half a decade or so, Digicel invested in 4G and FTTH/B networks to bring connectivity to 25 Caribbean countries even where it was economically challenging to do so. For us, ubiquitous coverage to ensure no community and no one was left behind was a priority.
In the Caribbean, Internet access is primarily through 3G and 4G mobile networks with less than 10% of the region’s population connected to a fixed network. Today 4G availability stands at over 90% population coverage in most Caribbean markets. We are proud of this achievement which has transformed the lives of many. We are working hard to bring more people online as the average Internet penetration rate in the region remains at 66%. In countries such as Haiti, Jamaica and Trinidad & Tobago up to 30% of users still spend the majority of their time on 2G and 3G. The return on investment in 4G networks is a challenge in such markets due to low ARPU and lack of economic scale.
Investors are likely to be much less forgiving where investment in 5G is concerned. There is no credible business case for 5G in most Caribbean countries. Wealthy 5G nations will enjoy a different Internet experience. Countries that do not have 5G, or even 4G networks will be left behind. This outcome will exacerbate the digital divide.
Globally the Telecoms sector is out of favour with investors as it delivers low returns, faces high Government fees and taxes and as networks are now dominated by OTT traffic. Continuing Capex outlays of 18% per annum to cater for this is not viable in emerging markets. The Broadband Commission’s 2021 ‘Report 21st Century Financing Models for Bridging Broadband Connectivity Gaps’ proposed broadening the base of contributors so that ‘all who derive benefits from the digital economy, as consumers or as producers contribute objectively, equitably and fairly’, in particular by including digital service providers.
The Commission must ensure that Broadband coverage equivalent to the coverage available in wealthy nations becomes available across large swathes of the developing to achieve its 2030 targets to close the digital divide and ensure a two-tier digital world does not become a reality. We have 6 years left to achieve this and it will be a big mountain to climb.
The ideas and opinions expressed in this insight are those of the authors; they do not necessarily reflect those of ITU and UNESCO or the Broadband Commission. The mention of specific companies, products or services does not imply that they are endorsed or recommended by ITU or UNESCO or Broadband Commission in preference to others of a similar nature that are not mentioned.
