Belize - Telecoms, Mobile and Broadband

Executive summary

A market in need of further reform

Belize is a small country with less than 350,000 inhabitants, the only English-speaking nation in Central America. The country has closer affinities with the Caribbean region than with its immediate neighbours.

While Belize’s GDP per capita is high for Central America, its telecoms services have attracted much dissatisfaction. Both fixed-line teledensity and mobile penetration are lower than in neighbouring countries.

The Belizean telecom market was officially liberalised in 2003, yet the incumbent, Belize Telemedia Limited, continues to hold a monopoly in fixed-line services and is the dominant provider of mobile and broadband services. In 2009, the state renationalised Belize Telemedia Limited, after a change of government brought to light a questionable Accommodation Agreement between the previous administration and Belize Telemedia Limited.

Although the rationale for the nationalisation was to improve conditions for consumers, Belize Telemedia Limited’s prices remain high and competition remains marginal. The nationalisation further discourages foreign investment in a market plagued by frequent allegations of corruption.

Market highlights:

• The number of fixed lines continued to fall keeping fixed-line teledensity in single figures. Meanwhile mobile penetration rates continue to rise steadily. By 2011, of the total number of telephone subscriptions approximately 10% were fixed and 90% were mobile.
• SpeedNet appears to be making inroads into the mobile sector, securing a sizeable market share by 2011.
• A legal challenge launched by the former owners of Belize Telemedia Limited against the government of Belize, alleging the nationalisation of Belize Telemedia Limited to be unconstitutional, was dismissed by the Supreme Court in late 2010.
• By the close of the Belize Telemedia Limited public share offer in February 2011 the Belize Social Security Board was the largest purchaser, holding a 20% stake in the company, leaving the government with a 73% stake.
• Compared with its other economic indicators, penetration is low in Belize for virtually all telecom services; therefore, should the country achieve an independent, pro-competition and transparent telecommunications policy and regulatory framework, the telecom market, though small, could become promising for investors.

Broadband subscribers and penetration – 2005; 2011

(Source: BuddeComm based on ITU and BTL with BuddeComm estimates)

Data in this report is the latest available at the time of preparation and may not be for the current year.

Lawrence Baker

March 2011

Table of Contents

• 1. Executive summary
• 2. Key statistics
• 3. Country overview
• 4. Telecommunications market
  • 4.1 Overview of Belize’s telecom market
  • 4.2 Overview of major operators
  • 4.3 Belize Telemedia Limited (BTL)
• 5. Regulatory environment
  • 5.1 Public Utilities Commission (PUC)
  • 5.2 Telecom sector liberalisation
  • 5.3 Renationalisation of BTL
• 6. Telecommunications infrastructure
  • 6.1 National telecom networks
  • 6.2 Infrastructure developments
    • 6.2.1 IP and Voice over Internet Protocol (VoIP)
  • 6.3 International infrastructure
    • 6.3.1 Interconnection with other Central American countries
    • 6.3.2 Submarine cable networks
• 7. Internet market
  • 7.1 Overview
  • 7.2 Internet statistics
• 8. Broadband market
  • 8.1 Overview
  • 8.2 Broadband statistics
• 9. Pay TV market
  • 9.1 Overview
• 10. Mobile communications
  • 10.1 Overview of Belize’s mobile market
  • 10.2 Mobile statistics
  • 10.3 Major mobile operators
    • 10.3.1 BTL (DigiCell)
    • 10.3.2 SpeedNet (Smart)
• 11. Related reports

• Table 1 – Country statistics Belize – 2011
• Table 2 – Telephone network statistics – 2011
• Table 3 – Internet user statistics – 2011
• Table 4 – Broadband statistics – 2011
• Table 5 – Mobile statistics – 2011
• Table 6 – National telecommunications authority
• Table 7 – Evolution of GDP in Belize – 2000 - 2011
• Table 8 – BTL broadband subscribers – 2005 - 2010
• Table 9 – Broadband subscribers and penetration – 2005 - 2011
• Table 10 – Mobile market share by major operator – 2005 - 2011

• Chart 1 – Fixed lines and teledensity – 2003 - 2011
• Chart 2 – Internet users and user penetration – 2000 - 2011
• Chart 3 – Mobile market share by operator – 2000 - 2011
• Chart 4 - Mobile market share by major operator – 2005; 2011

• Exhibit 1 – Major submarine cable networks links in Belize