Benefits of telecommunications liberalisation in Barbados

Tuesday, February 8, 2005

BRIDGETOWN, Barbados: When the telecommunications sector enters the third phase of the liberalisation process on February 21, Barbadians stand to reap significant benefits from the action.

During this final phase of liberalisation, the international market would be opened-up, affording new entrants the opportunity to own, operate and install international facilities such as marine cable and satellite. 

According to Minister of Public Utilities, Anthony Wood, this would enhance Barbados’ reputation as a jurisdiction for international business. “As the rates for international services decline, more international businesses should be attracted to Barbados, thereby spurring activity in the international business and financial services sector,” he said.

The Minister pointed out that this phase should also see a reduction in call charges and improved services; more employment opportunities; higher levels of investment; enhanced international competitiveness and improvement in the gross domestic product.

Phase three follows the first phase which saw the development of competition through resale of services and the development of facilities-based competition in cellular services; while the second one permitted the development of facilities-based competition between domestic providers.

These phases paved the way for a number of new players to enter the telecommunications market, with mobile telecommunications licences being issued to Cable and Wireless (Barbados) Limited, Sunbeach Communications Inc., Digicel (Barbados) Limited and Cellular Communications (Barbados) SRL (formerly AT&T Wireless, now Cingular Wireless).

As a result, cell phone use has increased from 60,000 to over 140, 000, bringing with it increased revenue through taxation, licence and spectrum fees. 

Consumers have also realised benefits as mobile rates have been reduced significantly due to the vibrancy of the competition among service providers.

Included in the other licences handed out was an Undersea Cable Landing Licence issued to Antilles Crossing LP. This permit allows the company to operate or construct an international submarine cable between any place in or outside of Barbados. 

Minister Wood described the provision of this licence as “very significant” to the sector, since it would provide much needed additional bandwidth. “Companies can tap into this structure to offer a wider variety of services to Barbadians,” he said.

Government’s aim in liberalising the telecommunications sector, as set out in its Green Paper on Telecommunications in 2000, is to have Barbados positioned at the leading edge of information and communication technology in the Caribbean. It also enables Barbadians greater choice in the quality and price of the services they elect to have.

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