Jamaica - Telecoms , Mobile and Broadband

Executive summary

3G and 4G deployments underpin industry-wide growth

BuddeComm’s annual publication, ‘Jamaica - Telecoms, Mobile and Broadband’, profiles the fixed-line, mobile and broadband markets in Jamaica.

Typical for the region, the relative size and rapid expansion of the Jamaican mobile sector continues to underpin growth in the telecommunications industry. Despite recessionary periods during 2009 and 2010, largely due to the broader global economic environment, the mobile sector is poised for strong growth between 2011 and 2016 on the back of the launch of new 3G and 4G networks. In particular, mobile broadband is likely to become a major revenue driver with stronger competition emerging between Digicel, Claro and LIME.

Jamaica is also enjoying increased investment from LIME and Digicel who have made Jamaica the headquarters for their regional operations.

This report contains overviews, analyses and statistics of the Jamaican fixed-line, mobile and broadband markets together with information on convergence issues and on the country’s fixed line incumbent and major mobile operators.

Market highlights:

• After securing a licence in the 2.5GHz spectrum, in August 2010 Digicel launched its much-anticipated nationwide WiMAX network for residential customers. Although subscriber data has yet to be reported, Digicel has expressed positive views about initial subscriber uptake.
• Shortly after Digicel’s WiMAX launch, in October 2010 Claro announced that it would be deploying an LTE wireless platform, allegedly capable of speeds of up to 170Mb/s. The deployment is part of Claro’s US$300 million capital investment in the build-out of its entire wireless network.
• In 2010 LIME announced that it would be investing US$600 million in new services and upgrades across the region, of which an estimated US$150 million would be in Jamaica. The investment will consolidate Jamaica as the hub of LIME’s regional operations, handling finance, procurement and human resource operations for all 13 LIME markets.
• In February 2011 Cable & Wireless Communications completed laying its US$35 million East-West cable between Jamaica, the British Virgin Islands and the Dominican Republic. The submarine cable is expected to significantly augment capacity for data and telephony services.
• The mobile market leader in early 2011 remained Digicel Jamaica, with approximately three times the market share of second-placed LIME. América Móvil‘s Claro was the third largest operator.
• In 2010 LIME secured an island-wide subscriber television wireless licences which may ultimately bring valuable competition to a market currently dominated by Columbus Communications Networks’ Flow.
• By 2011 cable broadband has made strong inroads into the broadband sector, significantly higher than its 4% share in 2006. The growth is largely due to the relatively high penetration of CATV in Jamaica together with significant investment by Flow and a number of new licence applications and licence extension applications offered by the BCJ.

Mobile statistics – 2011

(Source: BuddeComm based on ITU and Informa Telecoms & Media data)

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 Overview
• 5. Regulatory Environment
  • 5.1 Background
  • 5.2 Regulatory authorities
  • 5.3 Current regulatory developments
• 6. Fixed-line market
  • 6.1 Overview
  • 6.2 Fixed-line statistics
• 7. Telecommunications Infrastructure
  • 7.1 National telecom network
  • 7.2 International infrastructure
    • 7.2.1 Submarine cable networks
  • 7.3 IP and Voice over Internet Protocol (VoIP)
• 8. Internet Market
  • 8.1 Overview
  • 8.2 Internet statistics
• 9. Broadband Market
  • 9.1 Overview
  • 9.2 ADSL broadband
  • 9.3 Cable broadband
  • 9.4 Wireless broadband
• 10. Cable TV (CATV)
  • 10.1 Market overview
  • 10.2 Flow
• 11. Mobile Communications
  • 11.1 Overview
  • 11.2 Mobile statistics
  • 11.3 Major mobile operators
• 12. Related reports

• Table 1 – Country statistics Jamaica – 2011
• Table 2 – Telephone network statistics – 2011
• Table 3 – Internet statistics – 2011
• Table 4 – Mobile statistics – 2011
• Table 5 – National telecommunications authorities
• Table 6 – Mobile market share by major operator – 2005 - 2010

• Chart 1 – Fixed lines in service and teledensity – 2000 - 2011
• Chart 2 – Internet users, annual change and user penetration rate – 2000 - 2011
• Chart 3 – Mobile subscribers and penetration rate – 2000 - 2011
• Chart 4 – Mobile market share by major provider – 2005; 2010

• Exhibit 1 – Major submarine cable networks serving Jamaica
• Exhibit 2 – Jamaica’s e-Learning programme