Liberalization

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• Liberalization
• The Telecommunications Sector
• In the Caribbean
• Presented by Regenie F. Ch. Fräser
• SECRETARY GENERAL CANTO

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Specific Objectives

• This presentation
• Gives an appreciation of the global marketplace
  and market reforms.
• Defines the liberalization of the
  telecommunications market.
• Examines opportunities for service providers.
• Suggests possible interventions for CANTO as a
  Trade Association.

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Globalisation Liberalization

• Globalisation is the free flow of factors of
  production across borders.
• Trade liberalization refers to free trade.
• Market liberalization is the removal of
  administrative and regulatory encumbrances that
  restricted industry and commerce.
• The liberalization of the telecommunications
  market has concentrated the opening of
  monopolistic markets to competitive provisions of
  facilities and services.

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• Globalisation liberalization are driven by the
  information revolution, dramatic improvements in
  telecommunications, exponential increases in
  computing power coupled with lower costs, and
  developments of electronic communications and
  information networks such as the Internet.

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The winners are the innovators

• The winners are the companies, industries and
  countries which
• Are at the fore-front on technology innovation
  (the design of equipments and tools),
• Take advantage of technology transfer (the
  acquisition of appropriate knowledge and skills)
  and,
• Undertake market reforms to create the enabling
  business environment.

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The liberalization of the telecom market

• The liberalization of telecom services in the
  United Kingdom has had a locomotive effect on the
  global telecom market.
• There are lessons to be learnt from experiences
  in North, South and Central America Asia Africa
  and the Caribbean.
• Liberalization efforts have lead to lower prices,
  new telecommunications investment and enhanced
  service choices, access and quality.
• A number of developing countries have committed
  to open trade in telecommunications services at
  various levels under the General Agreements on
  Trade in Services (GATS).

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Faces of Liberalization

• Liberalization has taken the form of
  privatization, deregulation and competition.
• The privatization of public enterprises is often
  undertaken because of governments inability to
  raise needed capital for their public sector
  service providers.
• Increased competition has resulted from the
  breaking down of monopolies, and has
  significantly increased tele-density in several
  global markets.

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In the Caribbean

• Jamaica was the first Caricom country to
  liberalize the telecommunications market. Since
  then other Caricom markets have opened up to
  competition. Today two providers dominate the
  market, the British firm, Cable and Wireless and
  the Irish firm, Digicel.
• The introduction of new technologies and a
  greater range of services have resulted in higher
  telecommunication penetration and services usage,
  and wider service access particularly in rural
  areas that traditionally lack adequate coverage.

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Investment in telecoms on the increase

• Growth is driven by direct investment in
  information technology and wireless
  communications, and regulatory reforms.
• Spending on telecommunications equipment to
  increase by 5.4 percent in 2004 and then to grow
  at high single-digit rates through 2007. For the
  2004-07 periods, equipment spending in the five
  regions will expand at an estimated 7.4 percent
  compound annual growth rate (CAGR), rising from
  260.1 billion in 2004 to 328.1 billion in 2007
• Telecommunications Industry Association 2004
  Forecast.

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• The opportunities for telecommunications
  providers in the newly emerging Caribbean market
  are endless.
• Production, distribution and consumption are very
  dependent on telecommunication and computer
  technologies.
• tourism has the locomotive effect on the
  Caribbean economy. Tourism and related services
  will require easy access to telephone, Internet,
  email and payment and settlements services.

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industry best practices

• Industry best practices must be observed if
  market liberalization will be successful.
• Governments policy must be clear for the telecom
  sector and the adoption of policies to achieve
  those goals.
• Regulation must be open and transparent to ensure
  accountability, transparency, equity and adequacy
  of coverage. The regulatory agency must have the
  authority and capability to police the market
  behavior of industry.
• Where some services are not competitive, the
  regulator must be able to prevent
  cross-subsidization of competitive services from
  monopoly service revenues.

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CANTO NEW STRATEGIC DIRECTION

• To influence the development of policies and
  programs that affect members interests
• Acquire a pro-active position in strategic and
  policy issues, working together with regulators
  and telecommunication companies

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the role of CANTO

• CANTO will continue to influence the market
  reforms through representation, advocacy,
  promotion and education.
• Efforts would be aimed at working governments and
  the regulatory agencies towards creating the
  enabling environment for taking advantage of new
  technological and market innovations.
• Governments would be lobbied with respect to pace
  of deregulation and the opening of the market. In
  a liberalized market, the regulatory agency must
  permit the supplier time get the productive and
  distributive structures to adjust to the new
  business environment, to smooth out the cost of
  the regulatory requirements and to build capacity
  for the emerging competition.

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Conclusion

• Telecom service providers in the Caribbean are
  faced with challenging times.
• The market is driven by fierce competition,
  converging technologies and the rise in customer
  demand for new mobile and Internet services.
• Companies that do not adjust their business model
  will miss tremendous opportunities, or even
  worse, lose their position in the market.

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• THANK YOU
• www.canto.org
• Port of Spain, W.I.
• Ph868-6227448
• Fax[phone]
• EMAILRFRASER_at_CANTO.ORG