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									   Eastern Caribbean Telecommunications Authority




Socio-economic Impact of Liberalisation of Telecoms Sector in
                the ECTEL Member States




May 2006
                                 ECTEL MEMBER STATES


                                  Commonwealth of Dominica

                                            Grenada

                      The Federation of St Christopher (St Kitts) and Nevis

                                          Saint Lucia

                              Saint Vincent and the Grenadines




Contact Information
       Address                  ECTEL
                                P O Box 1886
                                Vide Boutielle
                                Castries
                                Saint Lucia

       Telephone:               (758) 458 1701
       Fax:                     (758) 458 1698
       Email:                   ectel@ectel.int
       Web Site                 www.ectel.int




                                                                              2
                                                        Table of Contents

1.0       BACKGROUND ............................................................................................................................ 5

2.0       STUDY OBJECTIVES .................................................................................................................. 6

3.0       METHODOLOGY ......................................................................................................................... 7

4.0       IMPACT ON TELECOMMUNICATIONS SECTOR ............................................................... 9
  4.1      EXECUTIVE SUMMARY ......................................................................................................... 9
  4.2      ECTEL .......................................................................................................................................11
     4.2.1   NEW ENTRANTS ...................................................................................................................11
     4.2.2   MARKET SIZE AND PENETRATION ...................................................................................12
     4.2.3   TRAFFIC ...............................................................................................................................15
     4.2.4   PRICE OF TELECOMMUNICATIONS SERVICES ..............................................................16
     4.2.5   MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS ...............................18
     4.2.6   SERVICE AND TECHNOLOGY ............................................................................................19
  4.3      DOMINICA ...............................................................................................................................21
     4.3.1   NEW ENTRANTS ...................................................................................................................21
     4.3.2   MARKET SIZE AND PENETRATION ...................................................................................21
     4.3.3   TRAFFIC ...............................................................................................................................23
     4.3.4   PRICE OF TELECOMMUNICATIONS SERVICES ..............................................................24
     4.3.5   MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS ...............................25
     4.3.6   SERVICE AND TECHNOLOGY ............................................................................................26
  4.4      GRENADA ................................................................................................................................28
     4.4.1   NEW ENTRANTS ...................................................................................................................28
     4.4.2   MARKET SIZE AND PENETRATION ...................................................................................28
     4.4.3   TRAFFIC ...............................................................................................................................30
     4.4.4   PRICE OF TELECOMMUNICATIONS SERVICES ..............................................................31
     4.4.5   MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS ...............................32
     4.4.6   SERVICE AND TECHNOLOGY ............................................................................................34
  4.5      ST KITTS AND NEVIS .............................................................................................................35
     4.5.1   NEW ENTRANTS ...................................................................................................................35
     4.5.2   MARKET SIZE AND PENETRATION ...................................................................................35
     4.5.3   TRAFFIC ...............................................................................................................................37
     4.5.4   PRICE OF TELECOMMUNICATIONS SERVICES ..............................................................38
     4.5.5   MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS ...............................39
     4.5.6   SERVICE AND TECHNOLOGY ............................................................................................40
  4.6      SAINT LUCIA ...........................................................................................................................42
     4.6.1   NEW ENTRANTS ...................................................................................................................42
     4.6.2   MARKET SIZE AND PENETRATION ...................................................................................42
     4.6.3   TRAFFIC ...............................................................................................................................44
     4.6.4   PRICE OF TELECOMMUNICATIONS SERVICES ..............................................................45
     4.6.5   MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS ...............................46
     4.6.6   SERVICE AND TECHNOLOGY ............................................................................................47
  4.7      ST VINCENT AND THE GRENADINES .................................................................................49
     4.7.1   NEW ENTRANTS ...................................................................................................................49
     4.7.2` MARKET SIZE AND PENETRATION ...................................................................................49
     4.7.3   TRAFFIC ...............................................................................................................................51
     4.7.4   PRICE OF TELECOMMUNICATIONS SERVICES ..............................................................52
     4.7.5   MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS ...............................53
     4.7.6   SERVICE AND TECHNOLOGY ............................................................................................54
  4.8      STATISTICAL TABLES ...........................................................................................................56




                                                                                                                                                       3
5.0         IMPACT ON TELECOMMUNICATIONS CONSUMER .......................................................63
    5.1      EXECUTIVE SUMMARY ........................................................................................................63
    5.2      DETAILED FINDINGS .............................................................................................................66
       5.2.1   RESPONDENTS PROFILE ...................................................................................................66
       5.2.2   TYPE OF TELEPHONE SERVICE .......................................................................................66
       5.2.3   FIXED LINE SERVICE .........................................................................................................67
       5.2.4   MOBILE SERVICE ................................................................................................................70
       5.2.5   TELEPHONE USAGE ...........................................................................................................77
       5.2.6   INTERNET ACCESS ..............................................................................................................83
       5.2.7   DIRECTORY SERVICE .........................................................................................................88
       5.2.8   AWARENESS OF REGULATOR ...........................................................................................90
       5.2.9   CONSUMER COMPLAINTS .................................................................................................92
REFERENCES ............................................................................................................................................93




                                                                                                                                                       4
                              1.0    BACKGROUND
With the launch of the World Bank funded, OECS Telecommunications Reform Project
in 1998, the States of Dominica, Grenada, St Kitts and Nevis, Saint Lucia and St Vincent
and the Grenadines embarked on a process to liberalize the telecommunications sector
within these States. The objectives of the project was to introduce pro-competition
reforms in the telecommunications sector, lower prices of telecommunications services
and increase the supply of informatics-related skills in the ECTEL Member States.

One of the main drivers of the liberalization process was the high cost of
telecommunications services. This hindered the competitiveness of firms by increasing
the cost of doing business and limiting their ability to capture the economic benefits of
Information and Communications Technologies (ICT) innovations and restricting access
to new technologies and services. The telecommunications sector is widely accepted as
essential for growth and development in an increasingly information oriented global
economy.

An ITU study of telecommunications and development, The Missing Link, states that
“telecommunications can increase the efficiency of economic, commercial and
administrative activities”. The publication also states that telecommunications can
“improve the effectiveness of social and emergency services and distribute the social,
cultural and economic benefits of the process of development more equitably throughout
the country".

1.1     Liberalization Process and Formation of ECTEL
The OECS Telecommunication Reform Project was launched in 1998 with the signing of
an agreement between the five OECS states of Dominica, Grenada, St Kitts and Nevis,
Saint Lucia and St Vincent and the Grenadines, to establish a common regulatory
framework for the telecommunications sector. Trading trends indicated that the region
needed to diversify its economy from dependence on agriculture and place greater
emphasis on services. Telecommunication was recognized as critical to this economic
diversification and it was agreed that the sector should be opened to competition.

Under the Telecommunications Reform Project, the treaty establishing ECTEL was
signed by the five participating governments on May 4, 2000 in St George‟s Grenada.
The Treaty provides for ECTEL to be established as an inter-governmental entity to
provided legal and technical advice to the OECS Contracting States on all matters
relating to telecommunications liberalization.

Liberalization of the telecommunications sector required negotiation between the OECS
Contracting States and the incumbent telecommunications provider, Cable & Wireless
which had been granted exclusive licences to provide telecommunications services in the
ECTEL Member States. In Saint Lucia, Cable & Wireless‟ exclusive licence would
expire in 2000. However the period of exclusivity was up to 2024 in the case of St Kitts
and Nevis.


                                                                                       5
An initial agreement signed between Cable & Wireless and the ECTEL Member States
outlined the process for liberalization and provided for a phased approach to
liberalization. In phase I, Cable & Wireless agreed to surrender its exclusive licences and
to be issued new non-exclusive licences. However licences could only be issued to new
entrants for Internet Network and Services. In Phase II the market would be completely
liberalized.

Negotiations continued and a second agreement to enable liberalization of the
telecommunications sector was signed between the ECTEL Member States and Cable &
Wireless on May 20, 2002. This agreement included new rates for regulated and
unregulated services and rules for establishment of a Price Cap Plan for regulated
services. With the first licences issued to new entrants in late 2002 liberalization of the
telecommunications sector in the ECTEL Member States became a reality.

1.2     Expected Benefits of liberalization
A number of benefits were expected to result from the liberalization of the
telecommunications market and the development of a rigorous legislative and regulatory
framework. Consumers, service providers and governments of the ECTEL Member
States were expected to reap significant rewards from liberalization. Consumers would
benefit from increased choice and competition in the provision of services as well as
protection under the new legislative framework.

Business consumers would gain from reduced prices, which would allow for increased
use of information technology and affordable access to international markets.
Improvements were also expected in the range and quality of advanced
telecommunications services available to consumers. Service providers would benefit
from a modern and stable regulatory environment. This environment would also attract
investment, new entrants and thus increased competition.

Governments stood to gain from increased revenues from licence fees and other
payments from an increasing number of service providers. On a macro level,
liberalization of the telecommunications sector was expected to play an important role in
facilitating increased economic activity in the productive sectors. The liberalized
telecommunications sector would positively impact employment, investments and make a
significant contribution to the GDP of the ECTEL Member States.



                          2.0     STUDY OBJECTIVES
A socio-economic impact study of the liberalization of the telecommunications sector in
the ECTEL Member States was conducted over the period June to August 2005. The
objective of the study was to measure the impact of liberalization of the
telecommunications sector on a number of key social and economic factors in the ECTEL
Member States. The economic factors included investment, employment, and cost


                                                                                         6
savings to consumers of telecommunications services. Socio-economic factors considered
included access to telecommunication services, quality of telecommunications services
and the availability of advanced telecommunications technologies and services to
consumers.


                             3.0    METHODOLOGY
3.1     Scope of Work
The objective of the study was to determine the socio-economic impact of the
liberalization of the telecom market on the Telecoms Sector and consumers. The study
targeted three main stakeholders in the telecommunications sector - the governments,
service providers and consumers.

To carry out the study survey instruments were developed and sent out to ministries of
finance and telecom providers. Assistance was sought from the Statistics Departments of
the Ministry of Finance in Saint Lucia to develop survey instrument to be used for the
consumer survey and to conduct interviews with the target group.

3.2     Methodology
To meet the study objectives surveys of the key stakeholders were conducted followed by
interviews to clarify data collected. The data was collected over the period June to
August 2005. Data collection method varied by stakeholder group.

Government and telecommunications providers
Data was collected by survey. Survey instruments were 2 to 8 pages long to limit the
burden on stakeholders and maximize response rate for focusing on key issues. The
survey focused on issues related to the measurement of socio-economic impact but were
also designed to serve as a benchmark for future market intelligence data collection. The
surveys were self administered and follow-up questions were used to ensure that
questions were answered correctly and that the survey was effective and efficient.

Consumers
Consumer data was gathered by means of a field survey conducted in the ECTEL
Members States of Dominica, Grenada, Saint Lucia and St Vincent and the Grenadines.
A survey questionnaire was developed; quotas were established to ensure sufficient
responses were obtained throughout each island. With the assistance of the Statistics
Departments of the Ministry of Finance, enumerators were sent out to conduct interviews
to collect data from consumers. A total of 1,722 interviews were conducted in four
Member States. St Kitts and Nevis was not surveyed as part of this exercise since during
the period under review (2001 to 2004) only the incumbent, Cable & Wireless, operated
in St Kitts.




                                                                                       7
3.3    Analysis and Reporting
Following the consumer survey, data processing was done by the Statistics Departments
of the Ministry of Finance, Saint Lucia. All data collected and processed was then
analysed and is presented in this report.




                                                                                   8
        4.0     IMPACT ON TELECOMMUNICATIONS SECTOR

                        4.1     EXECUTIVE SUMMARY

The main objective of the OECS Telecommunications Reform Project was to introduce
pro-competition reforms and thus attract new entrants to the liberalized market. In that
regard liberalization was a resounding success. The Telecommunications Act of 2000
provided the legal framework for the liberalization rescinding the monopoly rights of
Cable & Wireless in the ECTEL Member States. Under the new Telecommunications
Act, licences were granted to Cable & Wireless for the provision of fixed, mobile and
Internet services in 2001. By the end of 2004, close to forty licences had been issued to
new entrants in the ECTEL Member States for Fixed Public, Public Mobile and Internet
Networks and Services.

One of the most significant and measurable impacts of liberalization was the rapid
expansion of the market for mobile telephony. In 2001 the total number of mobile
subscribers in ECTEL Member States was 37,922 representing an average penetration of
9%. By 2004, the number of mobile subscribers expanded to in excess of 300,000
representing an average penetration of 62% in the ECTEL Members, well above the
regional average of 53%. In addition, the number of Internet subscribers grew from
18,040 in 2001 to over 30,000 in 2004 with roughly 50% having broadband access via
ADSL or cable.

The liberalized telecommunications markets in the ECTEL Member States attracted
significant investments from new entrants and from the incumbent upgrading its
infrastructure in preparation for competition. Investment in the telecommunications
sector stood at approximately $103 million in 2001. In 2003 investments increased by
more than 100% to in excess of $220 million mainly due to new entrants ramping up
investment in preparation for launching operations in the ECTEL Member States.
Investment in the sector has remained robust.

The liberalized telecommunications environment presented new opportunities for both
direct and indirect employment. In 2001 the number of persons employed by the lone
telecommunications service provider was 1,139. Even with a 15% reduction in number of
persons employed by the incumbent, direct employment by telecommunications service
providers grew to 1,155 by 2004, as employment by new entrants offset, to some extent,
the reduction in employment by the incumbent.

Liberalization has also presented employment opportunities for a number of independent
contractors and entrepreneurs. Services previously performed by the incumbent including
customer premise wiring are now outsourced to independent contractors. Other business
opportunities include the distribution of handsets and mobile accessories, sale of phone
cards and management of customer service stores.



                                                                                       9
The most widely felt impact of liberalization was the dramatic reduction in the per-
minute cost of international calls from a fixed line phone. In 2001 the per-minute cost for
a call to the United States averaged $3.25. A call from Saint Lucia to St Kitts and Nevis,
two ECTEL Member States was $2.25. The May 20th 2002 agreement between the
incumbent Cable & Wireless and the ECTEL Member States resulted in significant
reductions in rates. Cost of calls between ECTEL Member States was reduced by as
much as 77% in some cases to $0.50. These decreases in regional rates were
accompanied by a roughly 50% reduction in the cost of calls to the United States from a
fixed line telephone. Consumers can now enjoy savings of up 70% when making calls to
the US from a mobile phone.

The World Bank estimates net savings and surplus to consumers of $54 million in the
ECTEL Member States from the reduction of rates in fixed line services after adjusting
for increases in the residential and business access rates. Including consumer benefits
from mobile competition and reduction in ADSL rates overall economic benefits from
liberalization are quite substantial.

With competition in the market came the introduction of advanced services and
technology as well as improvements in service quality. Mobile service, on the Time
Division Multiple Access (TDMA) platform, was available to consumers from 1997. The
liberalized environment saw the introduction of mobile service on the Global System for
Mobile Communications (GSM) platform, and General Packet Radio Service (GPRS)
technology introduced by new entrant Digicel in March 2003 in Saint Lucia and St
Vincent and the Grenadines. With the GSM platform came an explosion in the use of
Short Message Service (SMS) text messaging. Picture messaging, Internet access via the
mobile phone and Bluetooth technology were launched by Digicel in October 2003.
Roaming was finally available to pre-paid mobile subscribers in August 2004.

The liberalization of the telecommunications sector has delivered on a number of the
promised benefits. Competition has resulted in introduction of new services and
technologies. Reduced prices allow businesses increased access to and expanded use of
information technologies to improve production. Consumers have gained from
considerable savings resulting from the significant reductions in the cost of
telecommunications services and increased choice of service providers.
Telecommunications have contributed to employment and increased investments in the
ECTEL Member States. The telecommunications sector is becoming more important to
the economy as a whole as an enabling mechanism for growth and production.




                                                                                        10
                                    4.2    ECTEL
4.2.1 NEW ENTRANTS

The Telecommunications Act of 2000 provided the legal framework for the liberalization
of the telecommunications sector by rescinding the rights previously given to Cable &
Wireless to be the monopoly provider of telecommunications services in the ECTEL
Member States. As a consequence this presented opportunities for other companies to
seek licences to provide telecommunications services within the ECTEL Member States.

By March 2005 close to forty licences had been issued in the ECTEL Member States for
Fixed Public, Public Mobile and Internet Networks and Services. Unfortunately, not
every provider who was granted a licence launched the service.

4.2.1.1 Fixed Services
 Although ten licences were issued for Fixed Public Networks, at present the Fixed Public
Network market remains a de facto monopoly with the incumbent Cable & Wireless as
the sole operator in four of the five ECTEL States. In Dominica, Marpin Telecoms and
Broadcasting and Orange also offer fixed telephony to the public.

4.2.1.2 Mobile Services
The Mobile Market proved much more attractive to new entrants. A total of seventeen
licences were issued, of which, thirteen were operational by March 2005. The mobile
providers in the ECTEL Member States are Cable & Wireless with licences in all ECTEL
Member States; Digicel operating in Grenada, Saint Lucia and St Vincent and the
Grenadines; Cingular Wireless1 operating in all Member States but St Kitts and Nevis at
the end of 2004 and Orange operating in Dominica. UTS-CariGlobe and Cingular
Wireless, were granted licences to operate in St Kitts and Nevis in 2002, but only started
operations in the first half of 2005.

4.2.1.3 Internet Services
In the area of Internet Network and Services a total of eleven licences were issued
between 2001 and 2004, eight of which are operational. A noteworthy impact of
liberalization and advancements in technology is that a number of cable TV companies
are now able to utilize their existing network to offer broadband Internet access to
consumers. These companies include the St Kitts and Nevis Cable Communications Ltd,
Caribbean Cable Communications (Nevis) Ltd, Kelcom International in St Vincent and
the Grenadines and Marpin Telecoms and Broadcasting Company Ltd in Dominica. The
incumbent Cable & Wireless offers dial-up and broadband ADSL Internet access.




1
    Cingular started operations as AWS Caribbean in Dominica, Grenada
     Wireless Holdings and Wireless Venture in Saint Lucia and St Vincent
     and the Grenadines.


                                                                                       11
4.2.1.4 Other Services
The first licence to land an alternative submarine cable in Saint Lucia was granted to
Antilles Crossing Ltd in 2004. A number of class licences were also issued covering a
range of services including International Simple Voice Resale, Internet Service Provider
and Value Added Services.

Table 1: Licences issued in ECTEL Member States up to March 2005
LICENCE       FIXED PUBLIC            PUBLIC MOBILE              INTERNET
                 NETWORK         TELECOMMUNICATIONS NETWORK AND
                                                                 SERVICES
Dominica     Cable & Wireless    Cable & Wireless            Cable & Wireless
                Marpin Telecoms and     Orange Dominica                Marpin Telecoms and
                Broadcasting            AWS Caribbean Holdings Inc     Broadcasting
                Sat                                                    Sat
                Telecommunications†                                    Telecommunications†
Grenada         Cable & Wireless        Cable & Wireless               Cable & Wireless
                Global       Network    Digicel                        Global        Network
                Partners†               Grenada Wireless Holding       Partners†
                Trans-World             Global Network Partners†
                Telecoms Caribbean†     Trans-World           Telecoms
                                        Caribbean†
St    Kitts Cable & Wireless            Cable & Wireless               Cable & Wireless
and Nevis   The Cable†                  UTS-CariGlobe†                 The Cable
                                        AWS Caribbean Holdings†        Nevis Communication
                                                                       Corporation†
                                                                       Caribbean        Cable
                                                                       Communications
Saint Lucia Cable & Wireless            Cable & Wireless               Cable & Wireless
                                        Digicel
                                        Wireless Ventures
St Vincent Cable & Wireless             Cable & Wireless               Cable & Wireless
and    the                              Digicel
Grenadines                              Wireless Ventures
Source: ECTEL/NTRCs
† Were not operational at March 2005.



4.2.2 MARKET SIZE AND PENETRATION

4.2.2.1 Telecommunications Revenue
The market for telecommunication services in ECTEL Member States reached a volume
of $676 million by March 2005. This represents an overall CAGR of 6% over 2001.
Opposing forces have affected revenues in the telecommunications sector. The negotiated
reduction in rates for both local and international calls from a fixed line has exerted
downward pressure on telecommunications revenue. However, this has been offset in part
by the expansion of the mobile segment both in terms of number of subscribers and
minutes of use. By March 2004 new entrants into the market for mobile services



                                                                                        12
accounted for 16% to the overall telecommunications revenue, this grew to 21% by
March 2005.

Figure 1: Telecommunications Revenue in ECTEL Member States
                               Telecommunications Revenue

                  800
                  700
                  600
    EC$Millions




                  500
                  400
                  300
                  200
                  100
                   0
                        2002                 2003                 2004       2005
                                            Period Ending March

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from operators



4.2.2.2 Fixed Line Penetration
The market for fixed line telephony has seen a decline since liberalization. The number of
fixed line subscribers stood at 152,940 in March 2002. This contracted to 127,948 by
March 2005, representing a compound annual decline rate of 4%. This decline in fixed
line telephony coupled with the rapid growth in mobile suggests some substitution from
fixed to mobile telephony. Cable & Wireless has remained the sole fixed line provider in
Grenada, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines. In
Dominica, Marpin Telecoms and Broadcasting and Orange also offer fixed line
telephony, however Cable & Wireless remains the dominant player.

4.2.2.3 Mobile Penetration
One of the most significant and measurable impacts of liberalization was the rapid
expansion of the market for mobile telephony. At March 2002, the total number of
mobile subscribers in ECTEL Member States was 37,922 representing an average
penetration of 9%. By March 2005, the number of mobile subscribers expanded to in
excess of 300,000 representing an average penetration of 62% in the ECTEL Member
States well above the regional average of 53%. The majority of consumers, more than
90%, opted for the pre-paid mobile service.

The expansion of the mobile sector in the ECTEL Member States demonstrates the
evolution of mobile service from a premium service only for the privileged few to a
mass-market service. Mobile service on the TDMA platform was available in the ECTEL
State as early as 1997. However at March 2002, the total number of mobile subscribers
was a mere 38,000 or 9% penetration.


                                                                                       13
The explosive growth of the mobile market was fuelled by a number of factors. Initially
the introduction of Calling Party Pays (CPP) in mid 2002 contributed to the increased use
and attractiveness of cell phones. In 2003 with new entrants poised to launch operations,
competitive pressures led to providers offering subsidised handset and reduced rates to
attract consumers. The most dramatic increase in penetration occurred in 2003 when the
number of subscribers doubled as new entrants entered the market for the first time.
Increased service coverage also made cell phone use more attractive in the mountainous
ECTEL Member States. Subscriber growth continued into 2005 with new entrants staring
operations in 2004.

Mobile penetration surpassed fixed line penetration in early 2003. Subsidized handsets
and prepaid cards in denominations as low as $5, means that prepaid mobile service is
much more accessible to persons than a fixed line service which requires a permanent
address and a monthly commitment.

4.2.2.4 Internet Penetration
Internet penetration by comparison is still quite low in the ECTEL Member States. The
number of Internet subscribers stood at roughly 18,300 in March 2002 representing an
average penetration of 4%. Only 4% of Internet subscribers had broadband access. By
March 2005 the number of Internet subscribers had almost doubled to just over 33,000
with 47% having broadband access.

Factors that have contributed to the low Internet penetration in the ECTEL Member
States are access to a computer and the cost of broadband access. In the consumer survey
conducted in four ECTEL Member States more than 50% of respondents stated that they
did not have Internet access because they did not have a computer. For the respondents
with a computer and dial-up Internet access, more than half indicated that they did not
have broadband access because it was too expensive.

Internet access is provided by the incumbent, Cable & Wireless, offering dial-up and
ADSL Broadband access and new entrants Marpin Telecoms and Broadcasting in
Dominica, St Kitts and Nevis Cable Communications Ltd, Caribbean Cable
Communications (Nevis) Ltd, and Kelcom International in St Vincent and the Grenadines
all offering broadband access via cable modem.




                                                                                      14
Figure 2: Telecommunications Service Penetration in the ECTEL Member States
                              Telecommunications Service Penetration

   70.00%

   60.00%

   50.00%

   40.00%

   30.00%

   20.00%

   10.00%

    0.00%
                  2002           2003            2004           2005       Fixed Line Penetration
                                 Period ending March                       Mobile Penetration
                                                                           Internet Penetration

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from operators



4.2.3 TRAFFIC

4.2.3.1 Local traffic
At March 2005, in excess of 500 million minutes originating from a fixed line were
switched in the ECTEL Member States. This represented an almost 25% decrease over
March 2003 figures. This decrease in traffic originating from a fixed line is consistent
with the decrease in the fixed line subscriber base.

At March 2005 local traffic originating from a mobile phone grew more than 100% over
March 2003, figures to in excess of 240 million minutes. This was largely as a result of
the dramatic increase in mobile subscribers as new mobile providers entered the market
in 2003 and 2004.

The decline in local traffic originating from fixed line and the accompanying expansion
in local traffic originating from mobile phones may offer some support to the view that
there has been some level of substitution away from fixed line since liberalization.
However, while the number of mobile subscribers is more than double the number of
fixed line subscribers, local traffic originating from a fixed line is more than twice that
from a mobile phone. This may be a direct result of the price differential between fixed
and mobile services.




                                                                                                15
4.2.3.2 International Traffic
Outgoing international traffic stood at 76 million minutes at March 2005 representing a
25% increase over March 2003 figures. A number of factors have contributed to the
growth in outgoing international traffic. Consumers benefited from significant reductions
in the international rates for outgoing international calls from a fixed line under the May
2002 Agreement between Cable & Wireless and the OECS Contracting States, and the
introduction of per second billing for International Direct Dialling (IDD) calls in 2003.
Additionally, new entrants in the mobile market in 2003 and 2004 introduced competition
in the international call market by offering IDD from mobile phones at very competitive
rates. At March 2004 traffic from new entrants accounted for an average of 19% of
outgoing international traffic; this was almost doubled to 35% in 2005.


Figure 3: Telecommunications traffic in the ECTEL Member States

                                  Telecommunications Traffic

                     900
                     800
                     700
   Million Minutes




                     600
                                                                              Local Fixed
                     500
                                                                              Local Mobile
                     400
                                                                              International
                     300
                     200
                     100
                       0
                           2003          2004             2005

                                  Period ending March


4.2.4 PRICE OF TELECOMMUNICATIONS SERVICES

4.2.4.1 Fixed Line Access Rates
Prior to the May 2002 Agreement between Cable & Wireless and the OECS Contracting
States to enable liberalization of the telecommunications sector, residential fixed line
access varied widely in the ECTEL States ranging from $17 in St Vincent and the
Grenadines to $54 in Grenada (including unlimited local calls). In negotiating the
agreement with Cable & Wireless, which included significant reductions in international
calling rates, in 2003 Cable & Wireless was granted increases in both residential and
business line access in all states except Grenada where rates were reduced. Subsequent to
the May 2002 Agreement, ECTEL negotiated a price cap plan with Cable & Wireless in
2004. Under the Price Cap plan, the residential fixed line access rates are frozen until
October 2008, while business access are allowed to increase by the rate of inflation.



                                                                                            16
Table 2: Residential Fixed Line Access in ECTEL Member States
                         MARCH 2003           MARCH 2004       MARCH 2005
                            (EC$)                (EC$)            (EC$)
Dominica              20                   24               24
Grenada               54                   26.40            26.40
St Kitts and Nevis    22                   26.40            26.40
Saint Lucia           24.25                26.40            26.40
St Vincent and the 17                      20.40            20.40
Grenadines
Source: ECTEL / operators

4.2.4.2 Local Rates
The May 2002 Agreement to enable liberalization resulted in the standardization of local
rates across the ECTEL member States. Prior to the agreement, fixed to fixed rates
ranged from $0.84 per call between zones in Dominica to $0.17 for two minutes in St
Vincent and the Grenadines. Under the agreement rates were harmonized to $0.09 day,
$0.08 evening and $0.06 weekend in all ECTEL Members States.

Consumers benefited from a 20% reduction in the rate of a fixed to fixed line call when
rates negotiated under the Price Cap Plan took effect in January 2005. Under the plan
rates were set at $0.70 day, $0.05 evening and weekends in the first year. The plan also
makes provision for an initial average savings of 10% on fixed to mobile calls with a
further 7% savings from the second year on. At March 2003 fixed to mobile rates were
$0.81 day to $0.78 weekends. At March 2005, rates were reduced under the Price Cap
Plan to $0.76 day and $0.75 evening and weekends.

4.2.4.3 International Rates
In 2001, the cost per minute for a call to the US averaged $3.25. A call from Saint Lucia
to St Kitts and Nevis, two ECTEL Member States, was $2.25. With the May 2002
Agreement, the cost of calls between ECTEL Member States was reduced by as much as
77% in some cases to $0.50. The decrease regional rates were accompanied by a roughly
50% reduction in the cost of calls to the United States from a fixed line telephone. With
new entrants in the mobile market consumers can now enjoy even more savings, as much
as 70% when making calls to the United States from a mobile phone.

4.2.4.4 Mobile Services
The rates for mobile services are not regulated in the ECTEL Member States and are set
by competitive market forces. At March 2005, the rates for mobile to mobile calls ranged
from $0.40 for calls on the same network to $0.99 for calls between networks. The rates
for mobile to fixed calls ranged from $0.48 to $0.89. The rates for SMS text messages
ranged from $0.20 to $0.25 per message. Rates for calls to the ECTEL Member States
ranged from $0.85 to $1.50 while rates for international calls to the United States ranged
from $0.95 to $2.70.




                                                                                       17
4.2.4.5 Internet Services
The incumbent Cable & Wireless remains the main Internet Service Provider in the
ECTEL Member States and the sole provider in Saint Lucia and Grenada. The rates for
Internet Services offered by Cable & Wireless are regulated under the Price Cap Plan.

For the period March 2003 to March 2005 the rates for twenty hours of dial-up Internet
access remained constant at $60 in Grenada, Saint Lucia, St Kitts and Nevis and St
Vincent and the Grenadines but held at $45 in Dominica where Marpin Telecoms and
Broadcasting Company offers high speed Internet access via cable modem.

At March 2003 the rates for 256Kbps high speed Internet access via ADSL ranged from
$199 in St Kitts and Nevis, to $249 in Dominica, Grenada and Saint Lucia to $299 in St
Vincent and the Grenadines. At March 2005, ADSL rates for 256Kbps were reduced by
as much as 50% in some cases to $129 in Dominica, St Kitts and Nevis and Saint Lucia
and $149 in Grenada and St Vincent and the Grenadines.

4.2.4.6 Consumer Surplus
The World Bank estimates net savings and surplus to consumers of $54 million in the
ECTEL Member States from the reduction of rates in fixed line services after adjusting
for increases in the residential and business access rates. Including consumer benefits
from mobile competition and reduction in ADSL rates overall economic benefits from
liberalization are even more substantial.


4.2.5 MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS

4.2.5.1 Investments
The liberalized telecommunications markets in the ECTEL Member States attracted
significant investments from the new entrants and from the incumbent in preparing for
competition. Investment in the telecommunications sector stood at approximately $103
million in 2001. In 2003, investments increased by more than 100% to in excess of $220
million mainly due to new entrants Digicel and Cingular Wireless ramping up investment
in preparation for launching operations in the ECTEL Member States. Investment in the
sector remained robust in 2004 with the sector attracting approximately $145 million in
capital.

Investments here generally refer to capital investments associated with acquiring
ownership of property plant and equipment for use in telecommunications services but in
some cases investment includes amounts spent in human resource developments.

All indications are that investment in the sector will remain strong as competition drives
the need for service providers to continue to innovate to attract new customers and keep
existing customer loyalty.




                                                                                       18
Figure 4: Telecom Investments in the ECTEL Member States

                     Investment in Telecom in ECTEL Member States


                    250


                    200
     EC$ Millions




                    150


                    100


                    50


                     0
                     2002           2003                 2004                   2005
                                    Pe riod e nding M arch



4.2.5.2 Employment
The liberalized telecommunications environment presented new opportunities for both
direct and indirect employment. In 2001 the number of persons employed by the lone
telecommunication service provider was recorded as 1,139. An outcome of the liberalized
market was an announcement of staff reduction by the incumbent Cable & Wireless and
indeed in 2002 Cable & Wireless staff was reduced by approximately 15%. However
with entry into the market by new entrants direct employment by telecommunications
service providers grew a conservative 2% to about 1,155 by 2004.

On the other hand, liberalization has presented employment opportunities for a number of
independent contractors and entrepreneurs. Services previously performed by the
incumbent including customer premise wiring and trenching are now outsourced to
independent contractors. Other business opportunities include the distribution of handsets
and mobile accessories, sale of pre-paid mobile phone cards, sale of public payphone
cards and calling cards for fixed line phones and management of customer service stores.


4.2.6 SERVICE AND TECHNOLOGY
With new entrants in the market came the introduction of advanced services and
technology as well as improvements in service quality spurred on by competition. Mobile
service, on the TDMA platform, was available to consumers from 1997 starting in
Dominica with roaming introduced in 1998. Features such as caller ID and voicemail
were introduced by 2000. However, the post liberalization environment saw the
introduction of mobile service on the GSM platform with GPRS technology, introduced
by Digicel in March 2003 in Saint Lucia and St Vincent and the Grenadines. With the



                                                                                       19
GSM platform came an explosion in the use of SMS text messaging. Picture messaging,
email and Internet access via the mobile phone and Bluetooth technology were launched
in by Digicel in October 2003. Roaming was finally available to pre-paid mobile
subscribers in August 2004.

The market for Internet access has also seen advancements in services offered. Internet
access was mainly via dial-up in 2001, by 2004 ADSL was widely available in all
ECTEL Member States. Liberalization also meant that cable TV companies could also
offer broadband Internet access using their existing infrastructure. Advancements in the
mobile market saw the introduction of mobile web access. Wireless access via Wi-Fi hot
spots is now available (2005) in Saint Lucia, Dominica and St Kitts and Nevis.

Competition continues to fuel the introduction of new services and technologies as
companies vie to attract new customers and maintain their market share. It is anticipated
that consumers and the ECTEL region as a whole will reap significant benefits from these
innovations.




                                                                                      20
                                   4.3   DOMINICA
4.3.1 NEW ENTRANTS

Under the new Telecommunications Act, licences were granted to Cable & Wireless for
the provision of fixed, mobile and Internet services in 2001. By March 2005 seven
licences had been issued to new entrants in Dominica for Fixed Public, Public Mobile
and Internet Networks and Services.

Dominica has the distinction of being the only ECTEL Member State with competition in
fixed, mobile and Internet markets. At March 2005, fixed service was being provided by
the incumbent Cable & Wireless and new entrant Marpin Telecoms and Broadcasting Co.
Ltd. In the mobile market competition was provided by new entrants Orange and AWS
Caribbean (Cingular Wireless). Marpin Telecoms and Broadcasting Co Ltd also provide
competition in the Internet market offering broadband access via cable modem. However
not all operators that were granted a licence had launched operations by March 2005.

Table 3: Licences issued in Dominica at March 2005
 LICENCE FIXED PUBLIC                   PUBLIC MOBILE                INTERNET
                 NETWORK          TELECOMMUNICATIONS                 NETWORK
                                                                        AND
                                                                     SERVICES
 Dominica       Cable & Wireless    Cable & Wireless               Cable & Wireless
                Marpin Telecoms and Orange Dominica                Marpin Telecoms
                Broadcasting        AWS Caribbean Holdings Inc     and Broadcasting
                Sat                                                Sat
                Telecommunications†                                Telecommunicatio
                                                                   ns†
Source: ECTEL / NTRC Dominica
† Not operational at March 2005.



4.3.2 MARKET SIZE AND PENETRATION

4.3.2.1 Telecommunications Revenue
The market for telecommunication services in Dominica was $82.4 million in March
2005. This represented a decline of 6% over the March 2002 figures. Opposing forces
have affected revenues in the telecommunications sector. The negotiated reduction in
rates for both local and international calls from a fixed line has exerted downward
pressure on telecommunications revenue. However, this has been offset, to some extent,
by the expansion of the mobile segment both in terms of number of subscribers and
minutes of use. In March 2005 new entrants accounted for 14% of the overall
telecommunications revenue.

4.3.2.2 Fixed Line Penetration


                                                                                   21
There has been some decline in fixed line penetration since liberalization. In March 2002,
the number of fixed line subscribers stood at 23,100 representing a 32% penetration. This
contracted to 20,900 subscribers or a 30% penetration by March 2005. The decline in
fixed line penetration, coupled with the significant increase in mobile penetration,
suggests some substitution away from fixed line to mobile.

Dominica has the distinction of being the only ECTEL Member State with competition in
the provision of fixed line telephony. In Dominica, fixed line telephony service is offered
by the incumbent Cable & Wireless and new entrants Marpin Telecoms and Broadcasting
Company Limited and Orange Dominica Limited.

4.3.2.3 Mobile Penetration
One of the most significant and measurable impacts of liberalization was the rapid
expansion of the market for mobile telephony. In March 2002 the total number of mobile
subscribers in Dominica was just over 7,000 representing a 10% penetration. By March
2005, the number of mobile subscribers increased by more than 500% to in excess of
43,200, representing a 62% penetration. More than 90% of mobile subscribers opt for the
pre-paid option. In Dominica, the mobile service providers are the incumbent, Cable &
Wireless, and new entrants Cingular Wireless and Orange Dominica Limited.

The expansion of the mobile sector in Dominica demonstrates the evolution of mobile
service from a premium service only for the privileged few to a mass-market service.
Mobile service on the TDMA platform was available in Dominica as early as 1997.
However at March 2002, the total number of mobile subscribers stood at 7,000,
representing a 10% penetration.

The explosive growth of the mobile market was fuelled by a number of factors, including
the introduction of Calling Party Pays (CPP) in mid 2002 and per second billing and
competition. In addition, competitive pressures led to providers offering subsidised
handsets and reduced rates to attract consumers. Increased service coverage also made
cell phone use more attractive in the mountainous state. The most dramatic increase in
penetration occurred in 2004 with the launch of two mobile providers.

Mobile penetration surpassed fixed line penetration in 2004. Subsidized handsets and
prepaid cards in denominations as low as $5 makes mobile service much more accessible
to persons than fixed line service, which requires a permanent address and a monthly
commitment.

4.3.2.4 Internet Penetration
Internet penetration by comparison is still quite low in Dominica. The number of Internet
subscribers stood at roughly 2,400 in March 2002 representing an average penetration of
3% with no broadband access. By March 2005, the number of Internet subscribers had
more than doubled to just over 6,000 with 68% of subscribers having broadband access.

Factors that have contributed to the low Internet penetration in the ECTEL Member
States are access to a computer and the cost of broadband access. In the consumer survey



                                                                                        22
conducted in Dominica, more than 50% of respondents stated that they did not have
Internet access because they did not have a computer. For the respondents with a
computer and dial-up Internet access 87% indicated that they did not have broadband
access because it was too expensive.

In Dominica, Internet access is provided by the incumbent, Cable & Wireless, offering
dial-up and ADSL Broadband access and new entrant Marpin Telecoms and
Broadcasting Company Limited offering broadband access via cable modem.

Figure 5: Telecommunications Service Penetration in Dominica

                           Telecommunications Service Penetration

                  70.00%

                  60.00%

                  50.00%
    Penetration




                  40.00%                                                             Fixed
                                                                                     Mobile
                  30.00%                                                             Internet

                  20.00%

                  10.00%

                  0.00%
                            2002      2003        2004           2005

                                    Period ending March


4.3.3 TRAFFIC

4.3.3.1 Local traffic
At March 2005 in excess of 60 million minutes originating from a fixed line were
switched in Dominica representing a 29% decrease over March 2003 figures. This
decrease in traffic originating from a fixed line is consistent with the decrease in the fixed
line subscriber base. Local traffic originating from a mobile phone stood at 2 million
minutes at March 2005. Unfortunately the data for previous years was not available for
comparison.

4.3.3.2 International Traffic
Outgoing international traffic stood at 10 million minutes at March 2005 representing an
11% increase over March 2003 figures. A number of factors have contributed to the
growth in outgoing international traffic. Consumers benefited from significant reductions
in the international rates for outgoing international calls from a fixed line under the May
2002 Agreement between Cable & Wireless and the OECS Contracting States. They also


                                                                                              23
benefited from the introduction of per second billing for IDD calls in 2003. Additionally,
new entrants in the mobile market in 2003 offered IDD from mobile phones at very
competitive rates. At March 2004 traffic from new entrants accounted for a mere 3% of
outgoing international traffic; this increased to 14% by March 2005.


4.3.4 PRICE OF TELECOMMUNICATIONS SERVICES

4.3.4.1 Fixed Line Access Rates
Prior to the May 2002 Agreement between Cable & Wireless and the OECS Contracting
States to enable liberalization of the telecommunications sector, residential fixed line
access was priced at $20. In negotiating the agreement with Cable & Wireless, which
included significant reductions in international calling rates, Cable & Wireless was
granted increases in both residential and business line access. Residential fixed line
access was increased to $24.

Following the May 2002 Agreement, the ECTEL Member States negotiated a Price Cap
Plan with Cable & Wireless in 2004. Under the Price Cap Plan the residential fixed line
access rates are frozen at $24 until October 2008, while business access rates are allowed
to increase by the rate of inflation.

4.3.4.2 Local Rates
The May 2002 Agreement to enable liberalization resulted in the standardization of local
rates across the ECTEL Member States. Prior to the agreement Dominica was divided in
to two zones. Fixed to fixed calls within a zone was $0.28 per call, while for calls
between zones the rates were $0.84 day, $0.70 evening and $0.56 weekends. Under the
agreement rates were set at $0.09 day, $0.08 evening and $0.06 weekend throughout the
entire island.

Consumers benefited from a 20% reduction in the rate of a fixed to fixed line call when
rates negotiated under the Price Cap Plan took effect in January 2005. Under the plan
rates were set at $0.70 day, $0.05 evening and weekends in the first year. The plan also
makes provision for an initial average savings of 10 % on fixed to mobile calls with a
further 7% savings from the second year. At March 2003 fixed to mobile rates were
$0.81 day, $0.80 evening and $0.78 weekends. Rates were reduced under the Price Cap
Plan to $0.76 day and $0.75 evening and weekends.

4.3.4.3 International Rates
In 2001, the cost per minute for a call to the United States was $3.25. A call from
Dominica to St Vincent and the Grenadines, two ECTEL Member States, was $1.90.
With the May 2002 Agreement the cost of calls between ECTEL Member States was
reduced by as much as 74% to $0.50. The decrease in regional rates were accompanied
by a roughly 50% reduction in the cost of calls to the United States from a fixed line
telephone.

4.3.4.4 Mobile Services



                                                                                       24
The rates for mobile services are not regulated in Dominica but are set by competitive
market forces. At March 2005, the rates for mobile to mobile calls ranged from $0.48 for
calls on the same network to $0.89 for calls between networks. The rates for mobile to
fixed calls ranged from $0.48 to $0.89. The rates for SMS text messages ranged from
$0.20 to $0.25 per message. Rates for calls to the ECTEL Member States ranged from
$1.00 to $1.50 while rates for international calls to the United States ranged from $1.65 to
$2.70.

4.3.4.5 Internet Services
The incumbent, Cable & Wireless, remains the main Internet Service Provider in
Dominica with Marpin Telecoms and Broadcasting offering broadband Internet access
via cable modem. The rates for Internet Services offered by Cable & Wireless are
regulated under the Price Cap Plan.

For the period March 2003 to March 2005 the rates for twenty hours of dial-up Internet
access remained constant at $45. At March 2004, the rates for 256Kbps high speed
Internet access via ADSL was $249 in Dominica this was reduced 48% to $129 at March
2005. This reduction in price resulted in a 270% increase in subscribers.


4.3.5 MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS

4.3.5.1 Contribution to Gross Value Added
The ECCB has estimated that economic activity in Dominica improved in 2004, marked
by an increase of 3.5% in real GDP, after three consecutive years of decline. The
telecommunications sector has contributed positively to this growth. The ECCB estimates
that the value added in the communications sectors increased by 6% in 2004, following
declines averaging 8% in the previous four years. This was attributed in part to the launch
of operations by two new entrants in the mobile market.

Telecommunications is not listed as a distinct sector of the economy in Dominica‟s
National Accounts, telecommunications is but rather it is included with posts under the
communications sector. For the purpose of this analysis communications is used as a
proxy for telecommunications.


4.3.5.2 Investment
The liberalized telecommunications markets in the ECTEL Member States attracted
significant investments from new entrants and from the incumbent preparing for
competition. Investment in the telecommunications sector was approximately $12.5
million in March 2002. By March 2005 investments increased by more than 300%
exceeding $44 million mainly due to new entrants ramping up investment as they
launched operations in 2004. In the liberalized telecommunications environment,
investment is expected to remain robust as competition encourages firms to innovate and
promote new services to keep and attract new customers.




                                                                                         25
Figure 6: Investments in Telecommunications in Dominica
                          Inv e stme nt in Te le communications

                   50
                   45
                   40
                   35
     EC$ Million




                   30
                   25
                   20
                   15

                   10
                   5
                   0
                   2002               2003                       2004           2005
                                         Pe riod e nding M arch


 Source: ECTEL / operators
 Note: Includes estimates where ECTEL did not receive data from the operators

4.3.5.3 Employment
The liberalized telecommunications environment presented new opportunities for both
direct and indirect employment. In 2001, the number of persons employed by the lone
telecommunications service provider was 283. Reduction in number of persons employed
by the incumbent appears to have been offset to some extent by employment by new
entrants, as direct employment in the telecommunications sector has held steady since
liberalization with the number of persons directly employed by licensed providers at 282.

Liberalization has also presented employment opportunities for a number of independent
contractors and entrepreneurs. Services previously performed by the incumbent including
customer premise wiring are now outsourced to independent contractors. Other business
opportunities include the distribution of handsets and mobile accessories, sale of phone
cards and management of customer service stores.


4.3.6 SERVICE AND TECHNOLOGY

With competition in the market came the introduction of advanced services and
technology as well as improvements in service quality. Mobile service, on the TDMA



                                                                                       26
platform, was available to consumers from 1997. The liberalized environment saw the
introduction of mobile service on the GSM platform with GPRS technology introduced
early 2004. With the GSM platform came an explosion in the use of SMS text messaging.
Picture messaging, email and Internet access via the mobile phone and Bluetooth
technology were launched by Cable & Wireless in February 2004. Roaming was finally
available to pre-paid mobile subscribers in August 2004. Other innovations included the
launch of pre-paid fixed line service and payphone card services by Orange Dominica.

The market for Internet access has also seen advancements in services offered. Internet
access was via dial-up access in 2001; by March 2005 broadband access via ADSL was
widely available in Dominica. Liberalization also meant that cable TV companies could
also offer broadband Internet access using their existing infrastructure. Marpin Telecoms
and Broadcasting Company Ltd now offers broadband Internet access via cable modem.
Advancements in the mobile market also saw the introduction of mobile web access.
Wireless access via Wi-Fi hot spots was introduced in Dominica in May 2005.

Competition continues to fuel the introduction of new services and technologies as
companies vie to attract new customers and grow their market share. It is expected that
consumers will reap significant benefits from these innovations.




                                                                                      27
                                        4.4      GRENADA
4.4.1 NEW ENTRANTS

With the liberalization of the telecommunications sector in Grenada, new licences were
granted to the incumbent and new entrants. At March 2003, three licences were issued for
Fixed Public Telecommunications, three for Public Mobile Telecommunications and two
for Internet Network and Services. By March 2005, two additional licences had been
issued for Public Mobile Telecommunications bringing to ten the total number of licences
granted.

Unfortunately, not all licensees have launched operations. At March 2005 the incumbent,
Cable & Wireless, remained the sole provider of fixed and Internet services. The mobile
market, on the other hand, is competitive with Cable & Wireless, and new entrants
Digicel and Grenada Wireless Holdings Ltd (trading as Cingular Wireless), providing
cellular services.

In addition to the individual licences, a number of class licences were also issued
covering a range of services including International Simple Voice Resale, Internet
Service Provider and Value Added Services.

Table 4: Licenses issued in Grenada up to March 2005
 LICENCE FIXED PUBLIC                  PUBLIC MOBILE                       INTERNET
                 NETWORK          TELECOMMUNICATIONS                       NETWORK
                                                                              AND
                                                                           SERVICES
 Grenada        Cable & Wireless              Cable & Wireless           Cable & Wireless
                Global Network                Digicel                    Global Network
                Partners†                     Grenada Wireless Holding   Partners†
                Trans-World                   Global Network Partners†
                Telecoms Caribbean†           Trans-World Telecoms
                                              Caribbean†
Source: ECTEL / NTRC Grenada
† Were not operational at March 2005.



4.4.2 MARKET SIZE AND PENETRATION

4.4.2.1 Telecommunications Revenue
The market for telecommunication services in Grenada reached a volume of $142 million
by March 2005. This represents an overall CAGR of 3% over March 2002. Opposing
forces have affected revenues in the telecommunications sector. The negotiated reduction
in rates for both local and international calls from a fixed line has exerted downward
pressure on telecommunications revenue. Declining revenues from fixed line services has
been offset, in part, by the expansion of the mobile segment both in terms of number of
subscribers and minutes of use. At March 2004, new entrants into the market for mobile



                                                                                            28
services accounted for 8% to the overall telecommunications revenue. This almost tripled
to 24% by March 2005.

4.4.2.2 Fixed Line Penetration
Fixed line penetration in Grenada has declined since liberalization. The number of fixed
line subscribers contracted 16% from 29,940 at March 2002 to 25,226 at March 2005.
This decline in fixed line penetration was accompanied by rapid growth in mobile
penetration.

4.4.2.3 Mobile Penetration
At March 2002, with Cable & Wireless as the sole provider of cellular services, the total
number of mobile subscribers in Grenada was 7,553 representing an average penetration
of 7%. Digicel and Grenada Wireless Holdings launched operations in 2003; by March
2005, mobile penetration increased ten fold to 74%.

As with the other ECTEL Member States, the expansion of the mobile sector in the
Grenada demonstrates the evolution of mobile service from a premium service to a mass-
market service. The explosive growth of the mobile market was fuelled by a number of
factors including the introduction of Calling Party Pays (CPP) in mid 2002 and the
introduction of competition. The most dramatic increase in penetration occurred in 2003
when the number of subscribers increased more than threefold as new entrants entered
the market for the first time. Subscriber growth continued into 2005. Mobile penetration
quickly surpassed fixed line penetration in 2003; prepaid mobile service is much more
accessible to persons than a fixed line service which requires a permanent address and a
monthly commitment.

4.4.2.4 Internet Penetration
Internet penetration by comparison is still quite low in Grenada. The number of Internet
subscribers stood at roughly 3,785 in March 2002 representing an average penetration of
4% with 4% of Internet subscribers having broadband service. At March, 2005 the
number of Internet subscribers increased 39% to 5,200 with roughly 25% having
broadband access.

Factors that have contributed to the low Internet penetration in Grenada are access to a
computer and the cost of broadband access. The incumbent Cable & Wireless remains
the sole Internet Service Provider offering dial-up and ADSL Broadband access.




                                                                                      29
 Figure 7: Telecommunications Service Penetration in Grenada.

                           Telecommunications Service Penetration

                  80.00%

                  70.00%

                  60.00%
    Penetration




                  50.00%
                                                                                      Fixed
                  40.00%                                                              Mobile
                                                                                      Internet
                  30.00%

                  20.00%

                  10.00%

                  0.00%
                             2002     2003        2004           2005

                                    Period Ending March




4.4.3 TRAFFIC

4.4.3.1 Local traffic
At March 2005, in excess of 248 million minutes originating from a fixed line were
switched in Grenada. This represented a 25% decrease over March 2003 figures. This
decrease in traffic originating from a fixed line is consistent with the decrease in the fixed
line subscriber base.

At March 2005 local traffic originating from a mobile phone grew more than 600% over
March 2003 figures to in excess of 42 million minutes. This was largely a result of the
dramatic increase in mobile subscribers as new mobile providers entered the market in
2003.

The decline in local traffic originating from a fixed line and the accompanying expansion
in local traffic originating from mobile phones may offer some support to the view that
there has been some level of substitution away from fixed line since liberalization. The
level of traffic originating from mobile phone is still however, significantly less than
traffic originating from fixed lines though the number of mobile subscribers is more than
triple the number of fixed lines.




                                                                                           30
4.4.3.2 International Traffic
Outgoing international traffic stood at 19 million minutes at March 2005, representing a
36% increase over March 2003 figures. A number of factors have contributed to the
growth in outgoing international traffic. Consumers benefited from significant reductions
in the international rates for outgoing international calls from a fixed line under the May
2002 Agreement between Cable & Wireless and the OECS Contracting States. Further
gains were made with the introduction of per second billing for IDD calls in 2003.
Additionally, new entrants in the mobile market in 2003 introduced competition in the
international call market by offering IDD from mobile phones. At March 2004, traffic
from new entrants accounted for a mere 8% of outgoing international traffic; this
increased more than threefold to 31% by March 2005.


4.4.4 PRICE OF TELECOMMUNICATIONS SERVICES

4.4.4.1 Fixed Line Access
Prior to the May 2002 Agreement between Cable & Wireless and the OECS Contracting
States to enable liberalization of the telecommunications sector, residential fixed line
access was priced at $54 in Grenada and included unlimited local calls. Under the
agreement with Cable & Wireless access and usage charges were harmonized across the
ECTEL Member States. Access charges were reduced 40% to $26.40 but usage rates
were introduced.

Subsequent to the May 2002 Agreement, ECTEL negotiated a Price Cap Plan with Cable
& Wireless in 2004. Under the Price Cap Plan the residential fixed line access rates are
frozen at $26.40 until October 2008. Business access is allowed to increase by the rate of
inflation.

4.4.4.2 Local Rates
The May 2002 Agreement to enable liberalization resulted in the standardization of local
rates across the ECTEL Member States. Prior to the agreement, there were no usage rates
in Grenada. Residential line access charges included unlimited local calls. Under the
agreement per minute usage rates were harmonized to $0.09 day, $0.08 evening and
$0.06 weekend in all ECTEL Members States.

In January 2005, consumers benefited from a 20% reduction in the rate of a fixed to fixed
line call when rates negotiated under the Price Cap Plan took effect. Under the plan rates
were set at $0.70 day, $0.05 evening and weekends in the first year. The plan also makes
provision for an initial average savings of 10% on fixed to mobile calls with a further 7%
savings from the second year on. At March 2003, fixed to mobile rates were $0.81 day to
$0.78 weekends. Rates were reduced under the Price Cap Plan to $0.76 day and $0.75
evening and weekends.

4.4.4.3 International Rates
In 2001, the cost per minute for a call to the United States was $3.25. A call from
Grenada to Dominica, two ECTEL Member States was $1.25. With the May 2002



                                                                                        31
Agreement the cost of calls between ECTEL Member States was reduced by as much as
60% to $0.50. The decrease in regional rates were accompanied by a roughly 50%
reduction in the cost of calls to the United States from a fixed line telephone. With new
entrants in the mobile market offering IDD calls, consumers can now enjoy even more
savings, as much as 70% when making calls to the United States from a mobile phone.

4.4.4.4 Mobile Services
The rates for mobile services are not regulated in Grenada but are set by competitive
market forces. At March 2005, the rates for mobile to mobile calls ranged from $0.38 for
calls on the same network to $0.99 for calls between networks. The rates for mobile to
fixed calls ranged from $0.49 to $0.89. The rates for SMS text messages ranged from
$0.20 to $0.25 per message. Rates for calls to the ECTEL Member States ranged from
$0.85 to $1.00 while rates for international calls to the United States ranged from $0.95 to
$1.65.

4.4.4.5 Internet Services
The incumbent Cable & Wireless remains the main Internet Service Provider in Grenada.
The rates for Internet Services offered by Cable & Wireless are regulated under the Price
Cap Plan.

For the period March 2003 to March 2005 the rates for twenty hours of dial-up Internet
access remained constant at $60. At March 2003 the rates for 256Kbps high speed
Internet access via ADSL was $249 in Grenada. At March 2005 ADSL rates for 256Kbps
were reduced 40% to $149. This reduction in price was accompanied by a 135% increase
in subscribers.


4.4.5 MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS

4.4.5.1 Contribution to Gross Value Added
The ECCB estimates that economic activity in Grenada contracted by 3% in 2004
following growth of 5% in 2003. The primary cause of the contraction was the
destruction wrought by hurricane Ivan in September 2004 which resulted in declines in
valued added by several major sectors. Despite this, value added in the communications
sector grew by 7% largely due to the entry of Grenada Wireless Holding Ltd into the
mobile market.

Telecommunications is not listed as a distinct sector of the economy in Grenada‟s
National Accounts, but rather it is subsumed with post under the heading
communications. Communications is used here as a proxy for telecommunications.

4.4.5.2 Investments
The liberalized telecommunications market has attracted significant investments from the
new entrants and the incumbent in preparing for competition. At March 2002, $5.6
million was invested in the telecommunications sector. Investment increased to $51
million in 2003, this was mainly due to the launch of operations by two new entrants.



                                                                                         32
Investment in the sector remained robust in 2004 with the sector attracting approximately
$25 million in capital.

All indications are that investment in the sector will remain strong as competition drives
the need for service providers to continue to innovate to attract new customers and keep
existing customers.

Figure 8: Investments in Telecommunications in Grenada

                          Investment in Telecommunications

                   60


                   50


                   40
    EC$ Millions




                   30


                   20


                   10


                   0
                   2002               2003                        2004            2005

                                       Pe riod e nding M arch

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



4.4.5.3 Employment
The liberalized telecommunications environment presents new opportunities for both
direct and indirect employment. At March 2002, the number of persons employed by the
lone telecommunication service provider was 219. An outcome of the liberalized market
was an announcement of staff reduction by the incumbent, Cable & Wireless, and indeed
by March 2005, Cable & Wireless staff was reduced by approximately 30%. This was
offset to some extent by employment opportunities from new entrants. At March 2005,
direct employment in the Telecoms Sector was 183.

Liberalization has also presented employment opportunities for a number of independent
contractors and entrepreneurs. Services previously performed by the incumbent including
customer premise wiring and trenching are now outsourced to independent contractors.
Other business opportunities include the sale of handsets and mobile accessories, sale of
pre-paid mobile phone cards, public payphone cards and calling cards for fixed line
phones and the management of customer service stores.


                                                                                         33
4.4.6 SERVICE AND TECHNOLOGY

With new entrants in the market came the introduction of advanced services and
technology as well as improvements in service quality spurred on by competition. Mobile
service, on the TDMA platform, was available to consumers from 2000 with features
such as caller ID and voicemail. However, the post liberalization environment saw the
introduction of mobile service on the GSM platform and GPRS technology introduced by
Digicel in October 2003.

With the GSM platform came an explosion in the use of SMS text messaging. Picture
messaging, email and Internet access via the mobile phone and Bluetooth technology
were launched by Digicel in October 2003. Roaming was finally available to pre-paid
mobile subscribers in August 2004. Competition continues to promote the introduction of
new services and technologies as companies vie to attract new customers and increase
their market share. Consumers should reap significant benefits from these innovations.




                                                                                    34
                            4.5      ST KITTS AND NEVIS
4.5.1 NEW ENTRANTS

Subsequent to the liberalization of the telecommunications sector in St Kitts and Nevis,
at March 2003 two licences were issued for Fixed Public Telecommunications, two for
Public Mobile Telecommunications and one for Internet Network and Services. By
March 2005 one additional licence had been issued for Public Mobile
Telecommunications and two for Internet Network and Services bringing to nine the total
number of licences granted.

At March 2005, the incumbent, Cable & Wireless, was still the sole provider of fixed line
and mobile services as other licensees had not launched operations. The market for
Internet Services was competitive, with Cable & Wireless offering dial-up and ADSL
broadband service and new entrants The Cable and Caribbean Cable Communications
(Nevis) Ltd both offering Internet access via cable modem.

A number of class licences were also issued covering a range of services including
International Simple Voice Resale, Internet Service Provider and Value Added Services.

Table 5: Licenses issued in St Kitts and Nevis up to March 2005
 LICENCE FIXED PUBLIC                    PUBLIC MOBILE                   INTERNET
                 NETWORK            TELECOMMUNICATIONS                   NETWORK
                                                                            AND
                                                                         SERVICES
 St Kitts       Cable & Wireless          Cable & Wireless             Cable & Wireless
 and Nevis      The Cable†                UTS-CariGlobe†               The Cable
                                          AWS Caribbean Holdings†      Nevis
                                                                       Communication
                                                                       Corporation†
                                                                       Caribbean Cable
                                                                       Communications
Source: ECTEL / NTRC St Kitts and Nevis
† Were not operational at March 2005.



4.5.2 MARKET SIZE AND PENETRATION

4.5.2.1 Telecommunications Revenue
Telecommunication revenue in St Kitts and Nevis was recorded at $98 million at March
2005. This represented a 23% increase over March 2002 figures. Telecommunications
revenues were affected by several factors. The negotiated reduction in rates for both local
and international calls from a fixed line has exerted downward pressure on
telecommunications revenue. This has been offset in part by the expansion of the mobile
and Internet markets. At March 2005, new entrants into the market accounted for only
3% to the overall telecommunications revenue.



                                                                                          35
4.5.2.2 Fixed Line Penetration
Fixed line penetration in St Kitts and Nevis has seen some contraction since
liberalization. The number of fixed line subscribers declined 16% from 24,078 at March
2002 to 20,312 at March 2005. This decline in fixed line penetration was accompanied by
growth in mobile penetration.

4.5.2.3 Mobile Penetration
Over the period April 2001 to March 2005, Cable & Wireless was the sole provider of
cellular services in St Kitts and Nevis. At March 2002 the total number of mobile
subscribers was 6,366 representing 14% penetration. By March 2005, the number of
subscribers grew by more than 350% to 29,066, or a 60% penetration.

This evolution of mobile from a premium service to a mass market was mainly a result of
aggressive marketing by the incumbent, including the introduction of subsidized
handsets, in anticipation of competition. The reduction in mobile to mobile rates and the
introduction of Calling Party Pays (CPP) also made the service more attractive to
consumers. The most significant increase in penetration occurred in 2003 when the
number of subscribers increased more than 150%. Subscriber growth continued through
to March 2005. Mobile penetration surpassed fixed line penetration in 2004; prepaid
mobile service is much more accessible to persons than a fixed line service which
requires a permanent address and a monthly commitment.

4.5.2.4 Internet Penetration
The market for Internet Services is competitive in St Kitts and Nevis. Internet penetration
in St Kitts and Nevis is roughly double that of the other ECTEL Member States. The
number of Internet subscribers stood at roughly 4,069 at March 2002, representing a
penetration of 8.8% with 7% of Internet subscribers using a provider other than the
incumbent. At March 2005 the number of Internet subscribers increased 100% to 8,270
with roughly 55% having broadband access and 30% using a provider other than the
incumbent.




                                                                                        36
Figure 9: Telecommunications Service Penetration in St Kitts and Nevis
                          Telecommunications Service Penetration

                 70.00%


                 60.00%


                 50.00%
   Penetration




                 40.00%                                                            Fixed
                                                                                   Mobile
                 30.00%                                                            Internet

                 20.00%


                 10.00%


                 0.00%
                          2002         2003             2004             2005

                                    Period ending March

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



4.5.3 TRAFFIC

4.5.3.1 Local traffic
At March 2005, in excess of 110 million minutes originating from a fixed line were
switched in St Kitts and Nevis, a decline of 29% over March 2003 figures. This decrease
in traffic originating from a fixed line is consistent with the decrease in the fixed line
subscriber base.

Local traffic originating from a mobile phone was 15 million minutes, representing a
200% increase over March 2003. This was principally due to the significant growth in
mobile subscribers as the mobile services were made more affordable and attractive to
consumers. The level of traffic originating from mobile phone is still however,
significantly less than traffic originating from fixed lines.

4.5.3.2 International Traffic
Outgoing international traffic has seen some decline since liberalization. At March 2003
outgoing international traffic stood at 16 million minutes. At March 2005 this was
reduced to 15 million minutes. This decline occurred despite significant reductions in the
rates for outgoing international calls from a fixed line under the May 2002 Agreement
between Cable & Wireless and the OECS Contracting States and the introduction of per
second billing for IDD calls in 2003.


                                                                                       37
4.5.4 PRICE OF TELECOMMUNICATIONS SERVICES

4.5.4.1 Fixed Line Access
Prior to the May 2002 Agreement between Cable & Wireless and the OECS Contracting
States to enable liberalization of the telecommunications sector, residential fixed line
access was priced at $22. In negotiating the agreement with Cable & Wireless, which
included significant reductions in local and international calling rates, Cable & Wireless
was granted increases in both residential and business line access. Residential fixed line
access was increased to $26.40.

Following the May 2002 Agreement, the ECTEL Member States negotiated a Price Cap
Plan with Cable & Wireless in 2004. Under the Price Cap Plan the residential fixed line
access rates are frozen at $26.40 until October 2008, while business access rates are
allowed to increase by the rate of inflation.

4.5.4.2 Local Rates
The May 2002 Agreement to enable liberalization resulted in the standardization of local
rates across the ECTEL Member States. Prior to the agreement an option available to
consumers for fixed to fixed calls was $0.20 per call. Under the agreement rates were set
at $0.09 day, $0.08 evening and $0.06 weekend in all ECTEL Members States.

In January 2005, consumers benefited from a further 20% reduction in the rates of a fixed
to fixed line call when rates negotiated under the Price Cap Plan took effect. Under the
plan rates were set at $0.70 day, $0.05 evening and weekends in the first year. The plan
also makes provision for an initial savings of 10% on fixed to mobile calls with a further
7% savings from the second year on. At March 2003, fixed to mobile rates were $0.81
day, $0.80 evening and $0.78 weekends. Rates were reduced under the Price Cap Plan to
$0.76 day and $0.75 evening and weekends.

4.5.4.3 International Rates
In 2001 the cost per minute for a call to the United States was $3.25. A call from St Kitts
and Nevis to Grenada, two ECTEL Member States, was $1.95. With the May 2002
Agreement the cost of calls between ECTEL Member States was reduced by as much as
74% to $0.50. The decrease in regional rates were accompanied by a roughly 50%
reduction in the cost of calls to the United States from a fixed line telephone.

4.5.4.4 Mobile Services
The rates for mobile services are not regulated in St Kitts, with the expectation of
competition in the mobile markets. However at March 2005, Cable & Wireless was the
sole mobile operator in St Kitts and Nevis. At March 2005, the rate for mobile to mobile
calls was $0.65 and the rate for mobile to fixed was $0.69. The rates for SMS text
message was $0.20 per message. The rate for calls to the ECTEL Member States was
$1.00 while the rate for international calls to the United States was $1.65.



                                                                                        38
4.5.4.5 Internet Services
The incumbent Cable & Wireless remains the main Internet Service Provider in St Kitts
and Nevis. In addition Internet access is also offered via cable modem by The Cable in St
Kitts and by Caribbean Cable Communications (Nevis) in Nevis. The rates for Internet
Services offered by Cable & Wireless are regulated under the Price Cap Plan.

For the period March 2003 to March 2005, the rate for twenty hours of dial-up Internet
access remained constant at $60. At March 2004, the rate for 256Kbps high speed
Internet access via ADSL was $199 in St Kitts and Nevis. This was reduced by 35 % to
$129 at March 2005. This reduction in price was accompanied by a 135% increase in
subscribers.


4.5.5 MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS

4.5.5.1 Contribution to Gross Value Added
The pace of economic activity in St Kitts and Nevis accelerated in 2004. The ECCB
estimates real GDP to have increased by 5.1%, compared to growth of 0.6% in 2003.
Value added in the communications sectors grew by 4.2% in 2004 as telecommunications
continues to contribute significantly to the overall economy.

Telecommunications is not listed as a distinct sector of the economy in St Kitts and
Nevis‟ National Accounts, but rather is subsumed with post under the heading
communications. Communications is used here as a proxy for telecommunications.

4.4.5.2 Investments
The liberalized telecommunications market has attracted significant investments from the
new entrants and from the incumbent in preparing for competition. At March 2003,
investment in the telecommunications sector stood at $17 million, increasing to $38
million at March 2005. This was mainly owing to the incumbent upgrading its
infrastructure in preparation for competition.

All indications are that investment in the sector will remain strong as new entrants launch
operations and competition drives the need for service providers to continue to innovate
to attract new customers and keep existing customers.




                                                                                        39
Figure 10: Investments in Telecommunications in St Kitts and Nevis
                          Inv e stme nt in Te le communications

                   40

                   35

                   30

                   25
    EC$ Millions




                   20

                   15

                   10

                   5

                   0
                   2002                2003                        2004          2005
                                          Period ending March


Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



4.5.5.3 Employment
Up to March 2005 Cable & Wireless remained the sole provider of fixed and mobile
services in St Kitts and Nevis though there were new entrants in the Internet market.
Overall there was a decrease in direct employment in the sector as Cable & Wireless
reduced its staff by roughly 15%. With new entrants entering the mobile market in mid
2005, an increase in employment in the sector is projected.

Liberalization has also presented employment opportunities in ancillary services. A
number of independent contractors and entrepreneurs have taken advantage of the
liberalized sector. Services previously performed by the incumbent, including customer
premise wiring and trenching, are now outsourced to independent contractors. Other
business opportunities include the sale of handsets and mobile accessories, sale of pre-
paid mobile phone cards, public payphone cards and calling cards for fixed line phones.


4.5.6 SERVICE AND TECHNOLOGY

Mobile service, on the TDMA platform, was available to consumers from 2001 with
features such as caller ID and voicemail. The post liberalization environment saw the




                                                                                     40
introduction of mobile service on the GSM platform and GPRS technology by Cable &
Wireless in May 2004.

With the GSM platform came an explosion in the use of SMS text messaging. Picture
messaging, email and Internet access via the mobile phone and Bluetooth technology
were launched in by Cable & Wireless in 2004. Roaming was made available to pre-paid
mobile subscribers in December 2004.

It is expected that as the sector becomes more competitive, this will fuel the introduction
of new services and technologies as companies vie to attract new customers and maintain
their market share. Consumers should reap significant benefits from these innovations.




                                                                                        41
                                   4.6    SAINT LUCIA

4.6.1 NEW ENTRANTS

With the liberalization of the telecommunications sector in Saint Lucia new licences were
issued to the incumbent, Cable & Wireless and new entrants. At March 2005, one licence
was issued for Fixed Public Telecommunications, three for Public Mobile
Telecommunications and one for Internet Networks and Services. The incumbent, Cable
& Wireless, remains the only provider of fixed and Internet services.

On the other hand, the mobile market attracted new entrants with Digicel and Wireless
Ventures (Cingular Wireless) entering the mobile market. At March 2005, Saint Lucia
was the only ECTEL Member State to have issued a licence for an alternative submarine
cable system.

I addition to the individual licences issued, a number of class licences were also issued
covering a range of services including International Simple Voice Resale, Internet
Service Provider and Value Added Services.

Table 6: Licenses issued in Saint Lucia up to March 2005
 LICENCE FIXED PUBLIC                    PUBLIC MOBILE                 INTERNET
                 NETWORK           TELECOMMUNICATIONS                  NETWORK
                                                                           AND
                                                                       SERVICES
 Saint         Cable & Wireless          Cable & Wireless            Cable & Wireless
 Lucia                                   Digicel
                                         Wireless Ventures
Source: ECTEL / NTRC Saint Lucia

4.6.2 MARKET SIZE AND PENETRATION

4.6.2.1 Telecommunications Revenue
The market for telecommunication services in Saint Lucia grew 40% from $156 million
at March 2002, to reach a volume of $218 million by March 2005. Opposing forces have
affected revenues in the telecommunications sector. The negotiated reduction in rates for
both local and international calls from a fixed line has exerted downward pressure on
telecommunications revenue. However, this has been offset in part by the expansion of
the mobile segment both in terms of number of subscribers and minutes of use. At March
2003, new entrants into the market for mobile services accounted for 0.08% to the overall
telecommunications revenue, which increased to 26% by March 2005.

4.6.2.2 Fixed Line Penetration
Fixed line penetration in Saint Lucia has declined since liberalization. The number of
fixed line subscribers contracted 16% from 49,700 at March 2002 to 41,665 at March


                                                                                      42
2005. This decline in fixed line penetration was accompanied by a rapid growth in mobile
penetration.

4.6.2.3 Mobile Penetration
At March 2002, with Cable & Wireless as the sole provider of cellular services, the total
number of mobile subscribers in Saint Lucia was 9,776 representing a 6% penetration.
Digicel and Wireless Ventures launched operations in 2003; by March 2005, mobile
penetration increased almost tenfold to 63%.

As with the other ECTEL Member States, the expansion of the mobile sector in Saint
Lucia demonstrates the evolution of mobile service from a premium service to a mass-
market service. The explosive growth of the mobile market was fuelled by a number of
factors, including the introduction of Calling Party Pays (CPP) in mid 2002, per second
billing and competition. The most dramatic increase in penetration occurred in 2003
when the number of subscribers increased by 87% as new entrants entered the market for
the first time. Subscriber growth continued into 2005. Mobile penetration quickly
surpassed fixed line penetration in 2003; prepaid mobile service is much more accessible
to persons than a fixed line service which requires a permanent address and a monthly
commitment.

4.6.2.4 Internet Penetration
Internet penetration by comparison is still quite low in Saint Lucia. The number of
Internet subscribers stood at roughly 4,993 in March 2002 representing a 3% penetration,
with 4% of Internet subscribers having broadband access. At March 2005, the number of
Internet subscribers increased 57% to 7,832, with roughly 46% having broadband access.

Factors that have contributed to the low Internet penetration in Saint Lucia includes lack
of competition, access to a computer and the cost of broadband access. Internet access is
provided by the incumbent Cable & Wireless offering dial-up and ADSL Broadband
access.




                                                                                       43
Figure 11: Telecommunications Penetration in Saint Lucia
                                Telecommunications Service Penetration


                70.00%


                60.00%


                50.00%
   Pentration




                40.00%                                                             Fixed
                                                                                   Mobile
                30.00%                                                             Internet

                20.00%


                10.00%


                0.00%
                         2002          2003              2004             2005

                                     Period ending March

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators

4.6.3 TRAFFIC

4.6.3.1 Local Traffic
In excess of 60 million minutes of local traffic originating from a mobile phone was
switched in Saint Lucia at March 2005. This represented an impressive 650% increase
over March 2003 figures. This was largely a result of the dramatic increase in mobile
subscribers as new mobile providers entered the market in 2003 with the liberalization of
the Telecoms Sector. Local traffic originating from a fixed line was not available for
comparison.

4.6.3.2 International Traffic
Outgoing international traffic stood at 24 million minutes at March 2005 representing a
47% increase over March 2003 figures. A number of factors have contributed to the
growth in outgoing international traffic. Consumers benefited from significant reductions
in the international rates for outgoing international calls from a fixed line under the May
2002 Agreement between Cable & Wireless and the OECS Contracting States and the
introduction of per second billing for IDD calls in 2003. Additionally, new entrants in the
mobile market in 2003 offered IDD from mobile phones at very competitive rates. At
March 2004 traffic from new entrants accounted for 18% of outgoing international
traffic; this grew to 25% by March 2005.




                                                                                            44
4.6.4 PRICE OF TELECOMMUNICATIONS SERVICES

4.6.4.1 Fixed Line Access
Prior to the May 2002 Agreement between Cable & Wireless and the OECS Contracting
States to enable liberalization of the telecommunications sector, residential fixed line
access was priced at $24.25 in Saint Lucia. Under the Agreement with Cable & Wireless
which included significant reduction in the international rates, local access and usage
charges were harmonized across the ECTEL Member States. Residential access charges
increased to $26.40.

Subsequent to the May 2002 Agreement, ECTEL negotiated a Price Cap Plan with Cable
& Wireless in 2004. Under this Price Cap Plan the residential fixed line access rates are
frozen at $26.40 until October 2008. Business access rates are allowed to increase by the
rate of inflation.

4.6.4.2 Local Rates
The May 2002 Agreement to enable liberalization resulted in the standardization of local
rates across the ECTEL Member States. Prior to the agreement, Saint Lucia was divided
into three zones. Fixed to fixed rates were $0.27 per call for call within a zone and $0.75
day, $0.60 evening and $0.45 weekends for calls between zones. Under the agreement,
per minute rates were set at $0.09 day, $0.08 evening and $0.06 weekend throughout the
entire island.

Consumers benefited from a further 20% reduction on the cost of a fixed to fixed line call
when rates negotiated under the Price Cap Plan took effect in January 2005. Under the
plan rates were set at $0.70 day, $0.05 evening and weekends in the first year. The plan
also makes provision for an initial average savings of 10% on fixed to mobile calls with a
further 7% savings from the second year. At March 2003 fixed to mobile rates were
$0.81 day, $0.80 evening and $0.78 weekends. At March 2005, rates were reduced under
the Price Cap Plan to $0.76 day and $0.75 evening and weekends.

4.6.4.3 International Rates
The cost per minute for a call to the United States was $3.25 at March 2002. A call from
Saint Lucia to St Kitts and Nevis, two ECTEL Member States, was $2.25. With the May
2002 Agreement, the cost of calls between ECTEL Member States was reduced by as
much as 77% to $0.50. The decrease in regional rates were accompanied by a roughly
50% reduction in the cost of calls to the United States from a fixed line telephone. With
new entrants in the mobile market offering IDD calls, consumers can now enjoy even
more savings, as much as 70% when making calls to the United States from a mobile
phone.

4.6.4.4 Mobile Services
Rates for mobile services are not regulated in Saint Lucia but are set by competitive
market forces. At March 2005, the rates for mobile to mobile calls ranged from $0.40 for
calls on the same network to $0.99 for calls between networks. The rates for mobile to
fixed calls ranged from $0.49 to $0.80. The rates for SMS text messages ranged from



                                                                                        45
$0.20 to $0.25 per message. Rates for calls to the ECTEL Member States ranged from
$0.85 to $1.00 while rates for international calls to the United States ranged from $1.25 to
$1.30.

4.6.4.5 Internet Services
The incumbent Cable & Wireless remains the sole Internet Service Provider in Saint
Lucia. The rates for Internet Services offered by Cable & Wireless are regulated under
the Price Cap Plan.

For the period March 2003 to March 2005 the rates for twenty hours of dial-up Internet
access remained constant at $60. At March 2003, the rates for 256Kbps high speed
Internet access via ADSL was $249. ADSL rates for 256Kbps were reduced 48% to $129
by March 2005. This reduction in price resulted in a 260% increase in subscribers.


4.6.5 MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS

4.6.5.1 Contribution to Gross Value Added
Saint Lucia‟s economy expanded in 2004 for a third consecutive year. The ECCB
estimates real GDP to have increased by 3.6 %, following growth of 2.9 % in 2003.
Value added in the telecommunications sector increased by 4.6 % in 2004, largely due to
continued growth in the mobile market.

Telecommunications is not listed as a distinct sector of the economy in Saint Lucia‟s
National Accounts, but rather is subsumed with post under the heading communications.
Communications is used here as a proxy for telecommunications.

4.6.5.2 Investments
The liberalized telecommunications market has attracted significant investments from the
new entrants and from the incumbent upgrading its infrastructure in preparation for
competition. At March 2002, $45 million was invested in the telecommunications sector.
Investment in the Telecoms Sector increased to $93 million at March 2004. This was
mainly due to the launch of operations by two new entrants. Investment in the sector
remained robust in 2004 with the sector attracting approximately $54 million in capital at
March 2005.

All indications are that investment in the sector will remain strong as competition drives
the need for service providers to continue to innovate to attract new customers and keep
existing customers.




                                                                                         46
Figure 12: Investments in Telecommunications in Saint Lucia
                              Inve s tm e nt in Te le com m unications


                    100

                    90

                    80

                    70
     EC$ Millions




                    60

                    50

                    40

                    30

                    20

                    10

                     0
                     2002              2003                       2004           2005

                                         Period ending March

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



4.6.5.3 Employment
The liberalized telecommunications environment presented new opportunities for both
direct and indirect employment. At March 2002, the number of persons employed by the
lone telecommunication service provider was 327. An outcome of the liberalized market
was an announcement of staff reduction by the incumbent Cable & Wireless, and indeed,
by March 2005 Cable & Wireless staff was reduced by approximately 12%. This was
offset to some extent by employment opportunities from new entrants. At March 2005,
direct employment in the Telecoms Sector was 395.

Liberalization has also presented employment opportunities for a number of independent
contractors and entrepreneurs. Services previously performed by the incumbent,
including customer premise wiring and trenching, are now outsourced to independent
contractors. Other business opportunities include the sale of handsets and mobile
accessories, sale of pre-paid mobile phone cards, public payphone cards and calling cards
for fixed line phones and the management of customer service stores.


4.6.6 SERVICE AND TECHNOLOGY

With new entrants in the market came the introduction of advanced services and
technology as well as improvements in service quality spurred on by competition. Mobile


                                                                                        47
service, on the TDMA platform, was available to consumers from 1998 with features
such as caller ID and voicemail. However, the post liberalization environment saw the
introduction of mobile service on the GSM platform and GPRS technology, introduced
by Digicel and Wireless Ventures in 2003.

With the GSM platform came an explosion in the use of SMS text messaging. Picture
messaging, email and Internet access via the mobile phone and Bluetooth technology
were launched by Digicel in October 2003. Roaming was finally available to pre-paid
mobile subscribers in August 2004. Competition continues to stimulate the introduction
of new services and technologies as companies vie to attract new customers and grow
their market share. Consumers should reap significant benefits from these innovations.




                                                                                   48
                4.7     ST VINCENT AND THE GRENADINES

4.7.1 NEW ENTRANTS

Under the new Telecommunications Act, licences were granted to Cable & Wireless for
the provision of fixed, mobile and Internet services in 2001. By March 2005 six licences
had been issued in St Vincent and the Grenadines, one for Fixed Public
Telecommunications, three for Public Mobile Telecommunications and one for Internet
Networks and Services. The incumbent Cable & Wireless remained the only provider of
fixed and Internet Services.

On the other hand, the mobile market attracted new entrants with Digicel and Wireless
Ventures (Cingular Wireless) entering the market. A number of class licences were also
issued covering a range of services including International Simple Voice Resale, Internet
Service Provider and Value Added Services.

Table 7: Licences issued in St Vincent and the Grenadines at March 2005
 LICENCE       FIXED PUBLIC              PUBLIC MOBILE             INTERNET
                  NETWORK           TELECOMMUNICATIONS             NETWORK
                                                                       AND
                                                                    SERVICES
 St Vincent Cable & Wireless        Cable & Wireless             Cable &
 and the                            Digicel                      Wireless
 Grenadines                         Wireless Ventures            Kelcom
                                                                 International
Source ECTEL / NTRC St Vincent and the Grenadines



4.7.2` MARKET SIZE AND PENETRATION

4.7.2.1 Telecommunications Revenue
The market for telecommunication services in St Vincent and the Grenadines was $135
million at March 2005, representing a 55% increase over March 2002 figures. Opposing
forces have affected revenues in the telecommunications sector. The negotiated reduction
in rates for both local and international calls from a fixed line has exerted downward
pressure on telecommunications revenue. This has been offset, to some extent, by the
expansion of the mobile segment both in terms of number of subscribers and minutes of
use. In March 2005 new entrants accounted for 30% of the overall telecommunications
revenue.

4.7.2.2 Fixed Line Penetration
There has been some decline in the fixed line penetration since liberalization. At March
2002 the number of fixed line subscribers stood at 26,078 representing a 24%
penetration; this contracted to 22,669 subscribers or a 23% penetration by March 2005.



                                                                                      49
The decline in fixed line penetration, coupled with the significant increase in mobile
penetration, suggests some substitution away from fixed line to mobile.


4.7.2.3 Mobile Penetration
One of the most significant and measurable impacts of liberalization was the rapid
expansion of the market for mobile telephony. At March 2002, with Cable & Wireless as
the sole provider, the total number of mobile subscribers in St Vincent and the
Grenadines was just over 7,100 representing a 7% penetration. By March 2005, the
number of mobile subscribers increased by more than 777% to in excess of 62,284
representing a 62% penetration. More than 90% of mobile subscribers opt for the pre-
paid option. In St Vincent and the Grenadines, the mobile service providers are the
incumbent, Cable & Wireless, and new entrants Cingular Wireless and Digicel.

The expansion of the mobile sector in St Vincent and the Grenadines demonstrates the
evolution of mobile service from a premium service only for the privileged few to a
mass-market service. The explosive growth of the mobile market was fuelled by a
number of factors including the introduction of Calling Party Pays (CPP) in mid 2002,
per second billing and competition. In addition, competitive pressures led to providers
offering subsidised handset and reduced rates to attract consumers. Increased service
coverage also made cell phone use more attractive. The most dramatic increase in
penetration occurred in 2003 when the number of subscribers grew 86% with the launch
of two mobile providers.

Mobile penetration surpassed fixed line penetration in 2003. Subsidized handsets and
prepaid cards in denominations as low as $5 makes mobile service much more accessible
to persons than a fixed line service which requires a permanent address and a monthly
commitment.

4.7.2.4 Internet Penetration
Internet penetration by comparison is still quite low in St Vincent and the Grenadines.
The number of Internet subscribers stood at roughly 3,080 in March 2002 representing an
average penetration of 3% with no broadband access. By March 2005 the number of
Internet subscribers grew 85% to over 5,700 with 35% of subscribers having broadband
access.

In St Vincent and the Grenadines, Internet access is provided by the incumbent, Cable &
Wireless, offering dial-up and ADSL broadband access and new entrant, Kelcom
International, offering broadband access via cable modem.




                                                                                    50
Figure 13: Telecommunications Service Penetration in St Vincent and the
           Grenadines

                           Telecommunications Service Penetration

                  70.00%

                  60.00%

                  50.00%
    Penetration




                  40.00%                                                            Fixed
                                                                                    Mobile
                  30.00%                                                            Internet

                  20.00%

                  10.00%

                  0.00%
                            2002        2003             2004            2005

                                    Period ending March

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



4.7.3 TRAFFIC

4.7.3.1 Local traffic
At March 2005 in excess of 100 million minutes originating from a fixed line were
switched in St Vincent and the Grenadines, representing a 1% decrease over March 2003
figures. This decrease in traffic originating from a fixed line is consistent with the
decrease in the fixed line subscriber base.

At March 2005, 126 million minutes of local traffic originating from a mobile phone was
switched, an increase of 40% over March 2003 figures. This was largely a result of the
dramatic increase in mobile subscribers as new mobile providers entered the market in
2003 as a result of liberalization of the Telecoms Sector.

The decline in local traffic originating from fixed line and the accompanying expansion
in local traffic originating from mobile phones offers some support to the view that there
has been some level of substitution away from fixed line since liberalization. The level of
traffic originating from mobile phones is still however, significantly less than traffic
originating from fixed lines though the number of mobile subscribers is more than double
the number of fixed lines.


                                                                                         51
4.7.3.2 International Traffic
Outgoing international traffic stood at 7 million minutes at March 2005 representing a
66% increase over March 2003 figures. A number of factors have contributed to the
growth in outgoing international traffic. Consumers benefited from significant reductions
in the international rates for outgoing international calls from a fixed line under the May
2002 Agreement between Cable & Wireless and the OECS Contracting States and the
introduction of per second billing for IDD calls in 2003. Additionally, new entrants in the
mobile market in 2003 offered IDD from mobile phones at very competitive rates. At
March 2004 traffic from new entrants accounted for 47% of outgoing international
traffic; this increased to 70% by March 2005.


4.7.4 PRICE OF TELECOMMUNICATIONS SERVICES

4.7.4.1 Fixed Line Access
Prior to the May 2002 Agreement between Cable & Wireless and the OECS Contracting
States to enable liberalization of the telecommunications sector, residential fixed line
access was priced at $17. In negotiating the Agreement with Cable & Wireless, which
included significant reductions in international calling rates, Cable & Wireless was
granted increases in both residential and business line access. Residential fixed line
access was increased to $20.40.

Following the May 2002 Agreement, the ECTEL Member States negotiated a Price Cap
Plan with Cable & Wireless in 2004. Under the Price Cap Plan, the residential fixed line
access rates are frozen at $20.40 until October 2008, while business access rates are
allowed to increase by the rate of inflation.

4.7.4.2 Local Rates
The May 2002 Agreement to enable liberalization resulted in the standardization of local
rates across the ECTEL Member States. Prior to the agreement the rate for fixed to fixed
calls was $0.17 per two minute period. Under the Agreement rates were set at $0.09 day,
$0.08 evening and $0.06 weekend.

Consumers benefited from a further 20% reduction in the rate of a fixed to fixed line call
when rates negotiated under the Price Cap Plan took effect in January 2005. Under the
plan rates were set at $0.70 day, $0.05 evening and weekends in the first year. The plan
also makes provision for an initial average savings of 10% on fixed to mobile calls with a
further 7% savings from the second year on. At March 2003 fixed to mobile rates were
$0.81 day, $0.80 evenings and $0.78 weekends. Rates were reduced under the Price Cap
Plan to $0.76 day and $0.75 evening and weekends.

4.7.4.3 International Rates
In 2001, the cost per minute for a call to the United States was $3.25. With the May 2002
Agreement, the cost of calls between ECTEL Member States was reduced by as much as



                                                                                        52
70% to $0.50. The decrease in regional rates was accompanied by a roughly 50%
reduction in the cost of calls to the United States from a fixed line telephone.

4.7.4.4 Mobile Services
Rates for mobile services are not regulated in St Vincent and the Grenadines but are set
by competitive market forces. At March 2005, the rates for mobile to mobile calls ranged
from $0.40 for calls on the same network to $0.99 for calls between networks. The rates
for mobile to fixed calls ranged from $0.79 to $0.80. The rates for SMS text messages
ranged from $0.20 to $0.25 per message. Rates for calls to the ECTEL Member States
ranged from $0.85 to $1.00 while rates for international calls to the United States ranged
from $1.30 to $1.65.

4.7.4.5 Internet Services
The incumbent, Cable & Wireless, remains the main Internet Service Provider in St
Vincent and the Grenadines with Kelcom International offering broadband Internet
access via cable modem. The rates for Internet Services offered by Cable & Wireless are
regulated under the Price Cap Plan.

For the period March 2003 to March 2005, the rates for twenty hours of dial-up Internet
access remained constant at $60. At March 2003 the rates for 256Kbps high speed
Internet access via ADSL was $299 in St Vincent and the Grenadines; this was reduced
50% to $149 at March 2005. This reduction in price was accompanied by a 220%
increase in subscribers.


4.7.5 MACROECONOMIC IMPORTANCE OF TELECOMMUNICATIONS

4.7.5.1 Contribution to Gross Value Added
St Vincent and the Grenadines‟ economic performance improved in 2004. The ECCB
estimates real GDP growth at 5.4% compared with 3.4% in 2003. Value added in the
telecommunications sector increased by 3% in 2004 largely due to continued growth in
the mobile market.

Telecommunications is not listed as a distinct sector of the economy in St Vincent and
the Grenadines‟ National Accounts, but rather is subsumed with post under the heading
communications. Communications is used here as a proxy for telecommunications.

4.7.5.2 Investment
The liberalized telecommunications markets in St Vincent and the Grenadines attracted
significant investments from new entrants and from the incumbent upgrading
infrastructure in preparation for competition. Investment in the telecommunications
sector was approximately $14.5 million at March 2002. By March 2004, investments
increased by more than 133% exceeding $33 million, mainly due to new entrants ramping
up investment as they launched operations in 2003. Investments remained robust in 2004
and the sector is expected to continue to attract investments as competition encourages
firms to innovated and promote new services to keep and attract new customers.



                                                                                       53
Figure 14: Investment in Telecommunications in St Vincent and the Grenadines

                          Investment in Telecommunications

                   40

                   35

                   30
    EC$ Millions




                   25

                   20

                   15

                   10

                   5

                   0
                   2002               2003                       2004             2005

                                         Period ending March

Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators

4.7.5.3 Employment
The liberalized telecommunications environment presented new opportunities for both
direct and indirect employment. In 2001 the number of persons employed by the lone
telecommunications service provider was 160. Reduction in number of persons employed
by the incumbent appears to have been offset to some degree by new entrants, as direct
employment in the telecommunications sector has held steady since liberalization with
the number of persons directly employed by licensed providers at 156.

Liberalization has also presented employment opportunities for a number of independent
contractors and entrepreneurs. Services previously performed by the incumbent,
including customer premise wiring, are now outsourced to independent contractors. Other
business opportunities include the distribution of handsets and mobile accessories, sale of
phone cards and management of customer service stores. A number of persons have
benefited from some form of employment related to the telecommunications sector.


4.7.6 SERVICE AND TECHNOLOGY

With new entrants in the market came the introduction of advanced services and
technology as well as improvements in service quality spurred on by competition. Mobile
service, on the TDMA platform, was available to consumers from 2000 with features
such as caller ID and voicemail. However, the post liberalization environment saw the



                                                                                         54
introduction of mobile service on the GSM platform with GPRS technology, introduced
by Digicel and Wireless Ventures in 2003.

With the GSM platform came an explosion in the use of SMS text messaging. Picture
messaging, email and Internet access via the mobile phone and Bluetooth technology
were launched by Digicel in October 2003. Roaming was finally available to pre-paid
mobile subscribers in August 2004. Competition continues to fuel the introduction of new
services and technologies as companies vie to attract new customers and increase their
market share. Consumers should reap significant benefits from these innovations.




                                                                                     55
                        4.8      STATISTICAL TABLES

                         Notes on Statistical Tables and Data



1.   All figures have been rounded to the nearest million, thousand, and whole number
     or to the second decimal place.

        -- denotes „nil‟
        0.0 denotes „negligible‟
        n.a. denotes „not available‟
        ** denotes „not applicable‟

     All dollar amounts are in Eastern Caribbean dollars (EC$).

     These telecommunications statistics are subject to revision from time to time to
     ensure accuracy


2.   Telecommunications revenues are the revenues received from providing
     telecommunications services.

3.   Fixed line penetration is obtained by dividing the number of fixed line subscribers
     by the population and multiplying by 100.

4.   Mobile penetration is obtained by dividing the number of cellular subscribers by
     the population and multiplying by 100.

5.   Internet penetration is obtained by dividing the number of Internet subscribers by
     the population and multiplying by 100.

6.   Outgoing international traffic is the total telephone traffic measured in minutes
     that originated from a fixed or mobile phone in the specified state with a
     destination outside the state. Local and international traffic does not include
     traffic for Cingular Wireless, this was not available at the time of publication.)

7.   Residential fixed line access charge is the recurring fixed charge for subscribing
     to the Public Switched Telephone Network (PSTN).

8.   Telecommunications investment is the expenditure associated with acquiring
     ownership of plant and property used for telecommunications service and includes
     land and buildings.

9.   Employment refers to the total number of staff employed                     by      a
     telecommunications provider. This does not include sub-contract staff.



                                                                                        56
10.   The data for populations are the mid-year estimates from the Eastern Caribbean
      Central Bank.




                                                                                 57
                                    STATISTICAL TABLES


Table 8: Telecommunications Revenues (EC$ Million)
                         Mar-02         Mar-03          Mar-04         Mar-05
     Dominica              $87            $83             $68            $82
     Grenada              $128           $114            $114           $142

 St Kitts and Nevis        $80            $84             $88            $98
    Saint Lucia           $156           $169            $204           $218
   St Vincent and
  the Grenadines           $87            $95            $137           $135
                          $538           $545            $611           $675
Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



Table 9: Fixed Line Penetration
                         Mar-02         Mar-03          Mar-04         Mar-05
     Dominica             32%            34%             35%            30%
     Grenada              29%            29%             26%            21%

 St Kitts and Nevis       52%             52%            49%            42%
    Saint Lucia           31%             32%            30%            26%
   St Vincent and
  the Grenadines          24%             25%            22%            23%
Source: ECTEL / operators



Table 10: Mobile Penetration
                         Mar-02         Mar-03          Mar-04         Mar-05
     Dominica             10%            18%             33%            62%
     Grenada               7%            21%             67%            74%

 St Kitts and Nevis        14%           32%             47%             61%
     Saint Lucia            6%           33%             60%             63%
   St Vincent and
  the Grenadines            7%           34%             64%             62%
Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators




                                                                                58
Table 11: Internet Penetration
                        Mar-02         Mar-03         Mar-04         Mar-05
      Dominica           3%             6%             8%             9%
      Grenada            4%             4%             5%             5%

 St Kitts and Nevis         9%           10%             13%             17%
     Saint Lucia            3%            4%              4%              5%
   St Vincent and
  the Grenadines            3%            3%              4%              6%
Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



Table 12: Local Traffic Originating from a Fixed Line
(Millions of minutes)
                         Mar-03        Mar-04       Mar-05
      Dominica             84            72           60
      Grenada             330           461          248

 St Kitts and Nevis         154         117           110
     Saint Lucia            n.a.        n.a.          n.a.
 St Vincent and the
    Grenadines              101         113           100
                            669         763           518
Source: ECTEL / operators



Table 13: Local Traffic Originating from a Mobile Phone
(Millions of minutes)
                         Mar-03        Mar-04       Mar-05
      Dominica            n.a.          n.a.         n.a.
      Grenada              6             18           42

 St Kitts and Nevis          5           15            15
     Saint Lucia             8           51            60
 St Vincent and the
    Grenadines               90         118           126
                            108         202           245
Source: ECTEL / operators




                                                                               59
Table 14: International Outgoing Traffic
(Millions of minutes)
                            Mar-02    Mar-03        Mar-04    Mar-05
        Dominica             9          9             8        10
        Grenada             14         14            14        19

 St Kitts and Nevis         14          16           15        15
     Saint Lucia            17          18           24        25
 St Vincent and the
    Grenadines               2           5            9         7
                            57          62           70        76
Source: ECTEL / operators



Table 15: Residential Fixed Line Access Charge
(EC$)
                        Mar-02         Mar-03        Mar-04   Mar-05
        Dominica        20.00          20.00         24.00    24.00
        Grenada         45.00          54.00         54.00    26.40

  St Kitts and Nevis      22.00        22.00         24.00     24.00
     Saint Lucia          24.25        22.00         26.40     26.40
 St Vincent and the
     Grenadines           17.00        17.00         20.40     20.40
Source: ECTEL / operators



Table 16: Local Fixed to Fixed Calling Rate
(EC$ per minute)
                        Mar-03       Mar-04     Mar-05
         Day              0.09        0.09       0.07
       Evening            0.08        0.08       0.05
      Weekend             0.06        0.06       0.05
Source: ECTEL / operators



Table 17: Local Fixed to Mobile Calling Rate
(EC$ per minute)
                        Mar-03       Mar-04     Mar-05
         Day              0.81        0.81       0.76
       Evening            0.80        0.80       0.75
      Weekend             0.78        0.78       0.75
Source: ECTEL / operators




                                                                       60
Table 18: Outgoing International Rate from a Fixed Line
(EC$ per minute)
                         Mar-03      Mar-04      Mar-05
    ECTEL States          0.50        0.50        0.50
   C&W Caribbean          0.66        0.66        0.66
      Non C&W
      Caribbean           0.99        0.99        0.99
   US and Europe          1.65        1.65        1.65
    Rest of World         2.20        2.20        2.20
Source: ECTEL / operators


Table 19: Telecommunications Investment
(EC$ million)
                         Mar-02         Mar-03           Mar-04        Mar-05
     Dominica             13              8               27            44
     Grenada               6             13               51            26

 St Kitts and Nevis         29             17             17             38
    Saint Lucia             45             78             93             54
   St Vincent and
  the Grenadines            15             18              34             20
                           107            134             222            182
Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators



Table 20: Employment in Telecommunications
                         Mar-02         Mar-03           Mar-04        Mar-05
     Dominica             283            273              275           282
     Grenada              219            172              190           183

 St Kitts and Nevis        150            122             120            140
    Saint Lucia            327            353             359            395
   St Vincent and
  the Grenadines           160            147              137           156
                          1139           1067             1081          1156
Source: ECTEL / operators
Note: Includes estimates where ECTEL did not receive data from the operators




                                                                                61
Table 21: Mid-year Population
(Thousands)
                      2001      2002   2003   2004
     Dominica           71        70     70     70
     Grenada           103       104    105    105

 St Kitts and Nevis    46        47     47     48
     Saint Lucia      158       159    161    162
   St Vincent and
  the Grenadines      109       108    107    101
Source: ECCB




                                                     62
      5.0     IMPACT ON TELECOMMUNICATIONS CONSUMER


                         5.1    EXECUTIVE SUMMARY
5.1.1 Respondents Profile
A total of 1722 interviews were conducted in the four ECTEL Member States surveyed;
234 in Dominica, 495 in Grenada, 489 in Saint Lucia and 504 in St Vincent and the
Grenadines. The ratio of male to female respondents was roughly one to one across all
states with 54% of respondents over age thirty-five. On average 69% of respondents were
employed, 7% retired, 8% were students and 16% were unemployed. Fifty-two per cent
of respondents had attained secondary level education or higher.

5.1.2 Type of Telephone Service
On average 59% of respondents had a fixed line telephone service; Saint Lucia had the
highest number of respondents with a fixed line (70%) with St Vincent and the
Grenadines recording the lowest at 48%. Across the states surveyed 73% of respondents
had a pre-paid cell phone, St Vincent and the Grenadines had the highest number of
respondents with pre-paid cell phone (80%) with Grenada recording the lowest at 68%.
The number of respondents with post-paid cell phones was less than 2% in Dominica,
Saint Lucia and St Vincent and the Grenadines with Grenada recording 6%.

Across all states 7% of respondents had no telephone; Dominica had the highest
occurrence at 9% and Saint Lucia the lowest at 5%. The most common reason given for
not having a telephone was that it was too expensive. A number of respondents indicated
that their fixed line had been disconnected.

5.1.3 Fixed Line Service
Roughly 90% of respondents across all states had only one fixed line with 10% having
two or more in the household. When asked to rate some aspects of their fixed service on a
scale from one to ten with one as unsatisfied and ten as very satisfied, on the whole
respondents expressed satisfaction with their service. On average responses were evenly
distributed between satisfaction, neutrality and dissatisfaction for the monthly rental. Just
over one third (36%) were unsatisfied (giving a rating from 1-3). However for all other
aspects surveyed the majority of respondents gave ratings of seven or more indicating
satisfaction. For quality of line reception on average 67% gave a rating of seven or
higher, 53% for customer service and 64% for features offered. Respondents were also
unlikely to give up their fixed line and switch to cell phone only.

5.1.4 Cell Phone Service
The number of cell phones in the household was evenly distributed with one third having
over one, two or three or more. The average number of persons per household was 3.19.
In terms of individual cell phones on average 79% of respondents had one cell phone,
15% had two and 8% had three or more phones. Across all islands the most important
consideration in the selection of a cell phone service provider was the cost of calls (45%),


                                                                                          63
followed by the cost of phones (44%) and service coverage (41%). While respondents
with more than one phone cited to benefit from lower rates for on-net calls as main
reason for more than one phone.

An overwhelming majority (84%) of respondents was satisfied with the available choice
of cell phone providers, including an average 48% who were very satisfied. St Vincent
and the Grenadines recorded the highest level of satisfaction with 62% responding very
satisfied. More than seven out of ten respondents felt that new entrants led to an increase
in new features and services. With the exception of Dominica, respondents generally felt
that the new entrants were more innovative than the incumbent provider.

Across all surveyed islands respondents were much more likely to use features such as
caller ID, call waiting and voicemail on a cell phone than on their landline. On average
90% of respondents use caller ID and 72% use voice mail on their cell phone compared
to 11.5% using caller ID and 20% using voice mail on their landline.

5.1.5 Local Calls
In Dominica (40%), Grenada (47%) and Saint Lucia (39%) respondents stated that most
local calls were fixed-to-fixed while in St Vincent and the Grenadines respondents (40%)
reported most local calls as on-net cell phone calls. A majority of respondents reported
spending less than $100 for local calls from a fixed line (75%) and local calls from a cell
phone (82%)

When asked to rate the price of local calls, on average respondents rated fixed-to-fixed
calls as fairly priced but fixed to cell phone and cell phone to cell phone whether on-net
or off-net were rated as high to very high.

5.1.6 International Calls
In Grenada (54%), Saint Lucia (48%) and St Vincent and the Grenadines (59%)
respondents stated that most international calls were from a pre-paid cell phone while in
Dominica, respondents (50%) reported most international calls as calls from a fixed line
phone. A majority of respondents reported spending less than $100 for international
calls from a fixed line (72%) and international calls from a cell phone (88%).

When asked to rate the price of international calls, on average respondents rated calls
from both fixed lines and cell phones as high to very high. The price of calls from cell
phones was rated slightly more favourable than calls from a fixed line.

5.1.7 Internet Access
Of the respondents surveyed an average of 17% indicated that they had Internet access at
home. Responses ranged from 28% in Saint Lucia to 9% in Grenada. These results are
significantly higher than the penetration levels calculated based on number of subscribers
reported by Internet service provides. Penetration levels were calculated at 6% in
Dominica, 1% in Grenada, 2% in Saint Lucia and 2% in St Vincent and the Grenadines.
The reason for this significant difference is not immediately clear.




                                                                                        64
Roughly 20% of persons without Internet access planned to get access in the next year.
Of the respondents who did not plan to get Internet access the main reasons cited were I
do not own a computer, I do not need Internet access and Internet access is too
expensive.

Most respondents in Dominica (31%), Grenada (80%) and St Vincent and the Grenadines
(46%) used a dial-up modem for Internet access while a majority in Saint Lucia (52%)
used ADSL. The main reason given for not having broadband access among dial-up users
was its too expensive/can’t afford it.

On average, nearly six out of ten respondents rated Internet service as satisfactory,
however of those who were dissatisfied the main reasons were that service was too slow,
followed by cost. It is not surprising that slow service is the main complaint as the
majority of users had a dial-up service.


5.1.8 Awareness of Regulator
 Respondents were asked are you aware that the National Telecommunications
Regulatory Commission (NTRC) regulates telecommunications service provider? In all
member state the majority response was no. Respondents in Grenada were the least aware
with a 71% no reply. This was followed by Saint Lucia with 65%, Dominica with 63%
and St Vincent and the Grenadines with 58%.

The answer to are you aware that the Eastern Caribbean Telecommunications Authority
(ECTEL) is a regional advisor on telecommunications matters showed only a marginal
improvement with a 71% no reply in Grenada, 59% in Dominica, 54% in Saint Lucia and
St Vincent and the Grenadines.




                                                                                     65
                              5.2     DETAILED FINDINGS
5.2.1 RESPONDENTS PROFILE
Consumer perception of the liberalization of the telecommunications market is very
important, as it is consumer behaviour that explains the patterns and trends observed in
the telecommunications market since liberalization. Consumers in this context refer to
the end user of telecommunications services. Two groups of users are generally
recognized by ECTEL, residential and business users. This report focuses on residential
users.

Two hundred and thirty-four respondents were interviewed in Dominica. Half of the
respondents were male and half female with 61% over age thirty-five. The majority (64%)
were employed persons with 6% retired, 9% students and 20% unemployed. Forty six percent
of the respondents had at least a secondary school education, with 10% having monthly
income in excess of $2,000. Average number of persons in the household was 3.5.

Four hundred and ninety-five respondents were interviewed in Grenada. Roughly half of the
respondents (49%) were male and 52% female with 55% over age thirty-five. The majority
(64%) were employed persons with 9% retired, 8% students and 20% unemployed. Most
respondents (54%) had at least a secondary school education, with 7% having monthly
income in excess of $2,000. Average number of persons in the household was 4.2.

Four hundred and eighty-nine respondents were interviewed in Saint Lucia. Almost half of
the respondents (49%) were male and 52% female with 57% over age thirty-five. The
majority (76%) were employed persons with 8% retired, 5% students and 10% unemployed.
Most respondents (56%) had at least a secondary school education, with 28% having monthly
income in excess of $2,000. Average number of persons in the household was 3.7.

Five hundred and four respondents were interviewed in St Vincent and the Grenadines. Just
over half (52%) of the respondents were male and 48% female with 42% over age thirty-five.
The majority (71%) were employed persons 4% retired, 9% students and 16% unemployed.
Most respondents (53%) had at least a secondary school education, with 6% having monthly
income in excess of $2,000. Average number of persons in the household was 4.2.


5.2.2 TYPE OF TELEPHONE SERVICE
In Dominica, Saint Lucia and Grenada more than half the respondents had fixed line service,
but only 48% of respondents in St Vincent and the Grenadines reported having a fixed line
phone. Saint Lucia had the highest penetration at 70%. Across all states more than two thirds
of respondents had prepaid cell phone service. St Vincent and the Grenadines reported the
highest penetration at 80%. By comparison the percentage of respondents with a post paid
service was quite low, Dominica and St Vincent and the Grenadines reported less than 2%,
Grenada 6% and Saint Lucia the highest at 16%

Across all states less than 10% of respondents reported having no telephone service; the
lowest was Saint Lucia at 5%. The main reasons cited for no telephone service was, too
expensive. There were also a number of respondents whose service had been disconnected.
For the respondents with no telephone service, most persons in Dominica and St Vincent and
the Grenadines used a payphone while most persons in Grenada and Saint Lucia used the
fixed line phone of a friend or family to contact persons by phone.

Figure 15: Type of Telephone Service


                                     Type of Telephone Service


   St Vincent and the
      Grenadines


            St Lucia


            Grenada


           Dominica
                                                                         None
                                                                         Post Paid Cell phones
                    0.00     20.00    40.00   60.00   80.00   100.00     Pre Paid Cell phones
                                        Percentage                       Fixed Line


Source: ECTEL
Note: Multiple responses allowed



5.2.3 FIXED LINE SERVICE

5.2.3.1 No of phone lines and features on line
More than 85% of respondents, across all states, had one functional fixed line in the
household. Saint Lucia recorded the highest percentage (13%) of respondents with two
lines followed by Dominica (11%). The number of respondents with three or more lines
was less than 2% in all states.

Respondents were asked which of four features (caller ID, call waiting, call forwarding
and voice mail) they had and used on their fixed line. Across all states less than half of
the respondents had any one service. The most popular service in Dominica and Saint
Lucia was caller ID, roughly one third of respondents had that service. Call waiting was
the popular service in Grenada (42%) and St Vincent and the Grenadines (22%)

For the respondents who did not use any these features the primary reason given was that
they did not need the feature (more than 50% of respondents in Dominica, Grenada and
Saint Lucia, 46% in St Vincent and the Grenadines) followed by cost of service.




                                                                                        67
       Figure 16: No of Telephone lines per Respondent and Features on Telephone Line


                     No of Telephone Lines                                                        Features on Telephone Line


                                                                                  45
100%                                                                              40
 90%                                                                              35
 80%




                                                                     Percentage
                                                                                  30
 70%
 60%                                                                              25
 50%                                                                              20
 40%                                                                              15
 30%                                                                              10
 20%                                                                               5
 10%                                                                               0
  0%                                                                                                                                   Call Waiting




                                                                                       Dominica




                                                                                                   Grenada




                                                                                                                          Grenadines
                                                                                                               St Lucia



                                                                                                                          St Vincent
                                                     Three or more




                                                                                                                           and the
       Dominica   Grenada    St Lucia   St Vincent                                                                                     Voice Mail
                                         and the     Two                                                                               Caller ID
                                        Grenadines   One                                                                               Call Forwarding




                                                                                                                                       68
5.2.3.2 Likelihood of Adding/Dropping a Line
Respondents where asked whether they added or dropped a line in the last two years, not
including extension or cell phones. Across all states less than 4% of respondents added a
fixed line in the past two years and less than 5% dropped a line. The principal reason for
adding a line was for Internet access while the main reason for dropping a line was due to
the cost of the additional.

5.2.3.3 Likelihood of Switching to Cell Phone Only
Respondents were asked how likely they were to drop their fixed line and switch to using
only cellular service. In each surveyed state the majority of respondents indicated that it
was very unlikely that they would switch indicating some resistance to substitution away
from a fixed line phone.

Figure 17: Likelihood of switching to Cell Phone Only




Source: ECTEL

For the respondents who indicated some likelihood of switching the primary reason cited
by respondents in Dominica (48%), Grenada (30.4%) and St Vincent and the Grenadines
(46.9%) was, to save money on monthly bill, the main reason for respondents in Saint
Lucia (39%) was a cell phone is more convenient. Other reasons included don’t use home
phone much, better service and different service provider.

5.2.3.4 Satisfaction with Fixed Line Service
Respondents were asked to rate some aspects of their fixed line service on a scale from 1
(not satisfied) to 10 (completely satisfied). Across the surveyed states monthly rental
charge received a neutral rating. Monthly rental charge received an average rating of 4.66
in Dominica, 5.59 in Grenada, 4.39 in Saint Lucia and 4.48 in St Vincent and the
Grenadines.

Respondents were generally satisfied with the quality of reception on telephone line; this
received an average rating of 7.33 in Dominica, 7.34 in Grenada, 7.40 in Saint Lucia and
a slightly lower rating of 6.72 in St Vincent and the Grenadines. Respondents gave
customer service a neutral rating of 6.64 in Dominica, 6.17 in Grenada, 6.24 in Saint
Lucia and 6.52 in St Vincent and the Grenadines. There was also general satisfaction with
the features available; the average rating was 7.29 Dominica, 7.70 in Grenada, 7.59 in
Saint Lucia but a neutral rating of 5.47 in St Vincent and the Grenadines

Figure 18: Rating of Fixed Line Service
                                         Rating of Fixed Line Service

                     9

                     8

                     7
    Average Rating




                     6

                     5

                     4

                     3

                     2

                     1

                     0                                                           Monthly Rental
                         Dominica   Grenada      St Lucia   St Vincent and the   Quality of Receptionon phone line
                                                                Grenadines       Customer Service
                                                                                 Features Available

Source: ECTEL

5.2.4 MOBILE SERVICE

5.2.4.1 Number of Cell Phones
Roughly one third of the respondents across all stated reported having one, two or three or
more cell phones in the household. When asked for the number of cell phone used by the
respondent, in all states more than 70% of respondents used one cell phone. In Dominica,
Grenada and Saint Lucia more than 14% had two cell phones and less than 10% had three or
more cell phones. In St Vincent and the Grenadines 18% used two cell phones and 10% used
three or more cell phones.




                                                                                                              70
Figure 19: No of Cell Phones
                                          Figure
                                  No of Cell Phone Used




          Dominica


          Grenada


          St Lucia

    St Vincent and
   the Grenadines
                                                                            One
                   0%      20%      40%      60%      80%     100%
                                                                            Two
                                                                            Three or more




5.2.4.2 Choice of Service Provider
In Dominica the majority of respondents (77%) had Cable & Wireless as their cell phone
service provider while in St Vincent and the Grenadines most respondents (71%) had Digicel
as their cell phone service provider. In Saint Lucia and Grenada roughly equal number of
respondents had Cable & Wireless and Digicel as service provider.

 The main consideration in selecting a cell phone service provider was cost of calls, followed
by cost of cell phones for respondents in Saint Lucia and St Vincent and the Grenadines. For
respondents in Dominica it was the reverse, cost of cell phone followed by cost of calls.
Service coverage was the most important consideration for respondents in Grenada followed
by cost of calls. The factors least considered across all states were technology used and
accessibility of outlets.




                                                                                           71
Figure 20: Cell Phone Service Provider




Source: ECTEL
Multiple responses allowed

5.2.4.3 Multiple Service Providers
Across all surveyed states, nearly one third of the respondents had at least two cell
phones. The reasons for using more than one cell phone, however, varied among the
states. In Dominica most respondents (35%) with more than one cell phone service
provider cited to benefit from lower rates for calls on the same network followed by in
case one provider’s network is down as the principal reasons. Most respondents in
Grenada (37%) said to get better local rates followed by in case one provider’s network is
down. The main reasons given in Saint Lucia were to benefit from lower rates for calls on
the same network (50% of respondents) followed by to get better local rates. A majority
of respondents in St Vincent and the Grenadines (34%) stated in case one provider’s
network is down followed by to get better local rates.

For respondents with multiple service providers the majority in Dominica and Saint Lucia
use Cable & Wireless most often for local calls while in Grenada and St Vincent and the
Grenadines the majority uses Digicel.

5.2.4.4 Satisfaction with Choice of Service Provider
Respondents were asked to state their level of satisfaction with the available choice of
cell phone service providers. In Dominica the majority (78%) were satisfied including
36% who were very satisfied. In Grenada 86% expressed satisfaction including 54% who
were very satisfied. Eighty-three percent of respondents in Saint Lucia were satisfied
with 40% responding very satisfied. St Vincent and the Grenadines recorded the highest
level of satisfaction at 89% with 62% very satisfied.




                                                                                       72
Across all states less than 25% of respondents have changed cell phone service provider
in the past two years. The primary reason stated by respondents in Grenada (30%) and
Saint Lucia (23%) was to get cheaper calling rates. Respondents in St Vincent and the
Grenadines (16%) cited most of my calls are to persons using this provider while
respondents in Dominica were split between better service (23%) and most calls are to
persons using this provider (23%).

Figure 21: Satisfaction with Choice of Service Provider

                               Satisfaction with Choice of Service Provider



     100%

      80%                                                    26.9
                              31.9
                                             43.6
      60%          42.21



      40%                                                                     Cannot say
                                                             62.1
                              54.2
                                             39.9
                                                                              Dissatisfied
      20%          35.71
                                                                              Somewhat Dissatisfied
                                                                              Somewhat satisfied
       0%
                Dominica   Grenada       St Lucia      St Vincent and         Very satisfied
                                                      the Grenadines


Source: ECTEL

5.2.4.5 Why Cell Phone Only
Respondents with only cell phone service were asked why no fixed line phone. The most
common reason given by respondents in Dominica was to save money on monthly bill
(50%). The most popular reason in Grenada (26%) and St Vincent and the Grenadines
(46%) was cell phone is more convenient. Respondents in Saint Lucia said don’t need a
home phone ( 41%).




                                                                                                      73
Figure 22: Reasons for Cell Phone Only

                                  Reasons for No Fixed Line Phone

                  60

                  50

                  40
     Percentage




                                                                                      Not av ailable in my area
                  30
                                                                                      Easier to get a cell phone

                  20                                                                  Sav e money on monthly bill

                  10                                                                  Don't need home phone

                                                                                      Better serv ice/Different serv ice
                  0                                                                   prov ider
                       Dominica    Grenada        St Lucia      St Vincent and        More conv enient
                                                               the Grenadines
                                                                                      Other

Source: ECTEL

5.2.4.6 Features and Innovation
Respondents were asked which of a list of features they have and use on their cell phone.
The most popular feature was caller ID used by more than 80% of respondents across all
states. This is followed by Text messaging in Dominica, Grenada and St Vincent and the
Grenadines, the second most popular feature in Saint Lucia is voice mail used by 87% of
respondents. The least popular feature in all states was Bluetooth technology used by less
than 7% in each state. In Dominica and St Vincent and the Grenadines its used by less
than 2% of respondents. Across all surveyed states more than 55% of respondent who did
not use a particular feature said that they did not need it.

Table 22: Features used on Cell Phone
                                       Dominica          Grenada        Saint Lucia   St Vincent and the
                                         (%)               (%)              (%)          Grenadines
                                                                                             (%)
   Caller ID                             94.2                92.7           94.4                 81.8

   Call Waiting                          35.1                62.3           75.9                 57.4

   Call forwarding                       19.5                28.5           39.7                 30.3

   Voice mail                            72.1                62.3           86.9                 67.6

   Roaming                               22.1                18.7           26.4                 15.5

   Text messaging                        85.7                83.5           79.5                 83.4

   Picture messaging                     27.9                31             24.4                 23.7

   Mobile E-mail                         18.8                9.5            16.7                 11.3

   Mobile Internet                        4.5                8.9            14.9                  8.2



                                                                                                                           74
                                  Dominica                  Grenada       Saint Lucia                 St Vincent and the
                                    (%)                       (%)             (%)                        Grenadines
                                                                                                             (%)

   Bluetooth technology                1.9                    4.1             6.2                            1.3

  Source: ECTEL
 Multiple responses allowed

When asked if competition has led to an increase in the introduction of new features and
services, more than 65% of respondents across all states said yes. In Dominica most
respondents (61%) identified the incumbent Cable & Wireless as the most innovative in
terms of introducing new products and services, while respondents in Saint Lucia (54%),
Grenada (61%) and St Vincent and the Grenadines (74%) identified new entrant Digicel
as most innovative in terms of introducing new products and services.

Figure 23: Have New Provides Introduced New Features and Services


                              New Providers Increased Features and Services



  St Vincent and the




                                                                                                2.8
                                                     79.3                            10.6             7.3
     Grenadines




                                                                                                3.9
            St Lucia                                74                             15.2   4.5         6.9




            Grenada                          65.7                           18.1                  11.7




                                                                                                                   Yes
                                                                                      4.5




           Dominica                            71.8                          10.9                 12.8
                                                                                                                   Somewhat
                                                                                                                   No
                       0%        20%                40%             60%        80%                    100%         Don't Know


Source: ECTEL

5.2.4.7 Service Quality
Respondents were asked to rate the quality of service of their cell phone service
provider(s) based on a number of service parameters. Each service parameter was to be
rated on a scale from 1(not satisfied) to 10 (completely satisfied). The average rating for
each service provider is presented in the table below. In general consumers appeared to
be satisfied with the level of service from the service providers. The noted exception was
the service parameter giving notice when network will be down; providers generally
received a score less than 6 indicating some level of dissatisfaction.




                                                                                                                           75
Table 23: Respondents Rating of Service Parameters

                                                                                Saint    St Vincent and
Service Parameter                                          Dominica   Grenada   Lucia    the Grenadines
Waiting time for connection of
new service                             Cable & Wireless      7.1       7.05      7.03        6.28
                                       Digicel                n/a       8.46      8.35         8.5
                                       Cingular Wireless     8.17       7.69      6.79        5.67
                                       Orange                7.73        n/a       n/a         n/a
Ability to successfully dial a local
call during peak periods               Cable & Wireless      7.03       6.77      6.72        6.17
                                       Digicel                n/a       8.58      7.82        8.24
                                       Cingular Wireless     7.17       8.32      7.09         6.3
                                       Orange                8.03        n/a       n/a         n/a
Ability to successfully dial
international calls during peak
periods                                Cable & Wireless       6.5       6.86      6.76        6.06
                                       Digicel                n/a       8.52      7.89        7.96
                                       Cingular Wireless     6.61        8.7      7.59        6.56
                                       Orange                7.58        n/a       n/a         n/a

Service Coverage                       Cable & Wireless      7.82       7.16      7.54        6.95
                                       Digicel                n/a       8.89      7.74        8.52
                                       Cingular Wireless     5.67        8.7      6.95        7.11
                                       Orange                7.84        n/a       n/a         n/a

Dropped Calls                          Cable & Wireless      5.42       6.55      6.73        5.63
                                       Digicel                n/a       8.26      7.58        7.05
                                       Cingular Wireless     6.08         8       7.18        6.35
                                       Orange                6.04        n/a       n/a         n/a

Voice Quality                          Cable & Wireless      8.15       7.62      7.86        7.38
                                       Digicel                n/a       9.04      8.45        8.65
                                       Cingular Wireless     8.19       9.32      7.19        6.37
                                       Orange                8.29        n/a       n/a         n/a

Dropped Messages                       Cable & Wireless      5.88       7.17      7.25        5.98
                                       Digicel                n/a       8.77      8.04        7.15
                                       Cingular Wireless     7.15       8.18      7.25        6.36
                                       Orange                6.92        n/a       n/a         n/a
Clear and accurate bills               Cable & Wireless      8.25       7.07      7.17        6.78
                                       Digicel                          8.11      8.04        8.45
                                       Cingular Wireless     8.44        9.5       6.7        9.00
                                       Orange                7.59        n/a       n/a         n/a




                                                                                              76
                                                                              Saint    St Vincent and
 Service Parameter                                       Dominica   Grenada   Lucia    the Grenadines
 Length of time before a customer
 care officer answers the phone
 when you call with a query          Cable & Wireless      6.09       6.08      5.55        5.98
                                     Digicel                n/a        7.8      7.02        7.19
                                     Cingular Wireless     6.82       7.13      6.68        5.18
                                     Orange                7.14        n/a       n/a         n/a
 Time for reconnection of service
 after payment of overdue amounts    Cable & Wireless       6.9       7.44      6.76        7.09
                                     Digicel                n/a       7.55      7.52         8.5
                                     Cingular Wireless      7.5        10       6.48          9
                                     Orange                  6         n/a       n/a         n/a
 Giving notice of when network
 will be down                        Cable & Wireless      3.18       4.78       4.7         4.9
                                     Digicel                n/a       6.42      5.04         5.8
                                     Cingular Wireless       5        5.29      4.94         4.8
                                     Orange                5.21        1         n/a         n/a
 Responses to queries, problems or
 complaints                          Cable & Wireless      6.25       6.38       6.3        6.39
                                     Digicel                n/a       7.86      7.44        8.01
                                     Cingular Wireless     6.82       7.76      6.66        6.55
                                     Orange                7.03        n/a       n/a         n/a
Source: ECTEL



5.2.5 TELEPHONE USAGE
Almost all respondents with a fixed line (97%) used it to both make and receive calls with
only 2.8% using fixed line to receive calls only. Similarly 99% of respondents with cell
phone service use it for making and receiving calls and 97% of respondents with access to
SMS use their cell phones to send and receive test messages.

5.2.5.1 Local Calls
Respondents were presented with a number of options and asked the most common
method used for local calls. In Dominica (40%), Grenada (47%) and Saint Lucia (39%)
respondents indicated that most local calls were fixed to fixed, while in St Vincent and
the Grenadines 40% of respondents stated that most local calls were cell phone to cell
phone on the same network. The methods used least often were text messaging and
public payphones. Across all states less than 4% of respondents used text messaging as
main method for local calls, Grenada recording lowest use at 0.50%.




                                                                                            77
Figure 24: Main Method for Making Local Calls

                                           Figure
                                  Main Method for Local Calls



 St Vincent and the
    Grenadines



          St Lucia                                                       Fixed to cell phone

                                                                         Fixed to fixed

                                                                         Cell phone to fixed
          Grenada
                                                                         Cell to cell same network

                                                                         Cell to cell different net
         Dominica                                                        network
                                                                         Text messages

                                                                         Public payphone
                      0%   20%   40%         60%          80%   100%


Source: ECTEL



5.2.5.2 Amount Spent on Local Calls
Respondents were asked how much was spent on average each month on local telephone
service, not including monthly rental charges or fees for value added services like caller
ID or voice mail. Across surveyed states more than 60% of respondents reported
spending less than $100 on local calls, from a fixed line. Seven percent of respondents in
Dominica, 5% in Grenada and Saint Lucia and 1% in St Vincent and the Grenadines
reported spending more than $300.

For local calls from a cell phone more than 80% of respondents across the surveyed states
reported spending less than $100. One percent of respondents in Dominica, 4% of
respondents in Grenada, 2% in Saint Lucia and 2% in St Vincent and the Grenadines
reported spending more than $300.




                                                                                                78
Figure 25: Amount Spent on Local Calls from Fixed Line and Mobile Phone

                           Amont Spent on Local Calls from Fixed Line



      100%




       80%




       60%                                                                     More than 300
                                                                               200 - 300
                                                                               100-200
       40%                                                                     1-100




       20%




        0%
                Dominica       Grenada         St Lucia      St Vincent and
                                                            the Grenadines




           Amount spent on Local Calls from a Mobile phone

     100%
      90%
      80%
      70%                                                                     More than$ 300
      60%
                                                                              $200 - $300
      50%
                                                                              $100-$200
      40%
      30%                                                                     $1-$100
      20%
      10%
        0%
                Dominica      Grenada        St Lucia      St Vincent
                                                            and the
                                                           Grenadines


Source: ECTEL



5.2.5.3 Satisfaction with Price of Local Calls Services
Respondents were asked to give their opinion of the prices of local calls using the scale
very low(1), low(2), priced right(3), high(4), very high(5). Across the surveyed states
respondents indicated that local fixed to fixed calls were priced right. The price of local
fixed to fixed calls received an average rating of 3.53 in Dominica, 3.09 in Grenada, 3.36
in Saint Lucia and 3.10 in St Vincent and the Grenadines. The price of cell phone to cell
phone calls received similar ratings with an average of 3.81 in Dominica, 3.22 in
Grenada, 3.52 in Saint Lucia and 3.43 in St Vincent and the Grenadines.

The price of local fixed to cell phone calls were however rated as high with an average
rating of 4.40 in Dominica, 4.15 in Grenada, 4.55 in Saint Lucia and 4.49 in St Vincent


                                                                                               79
and the Grenadines. The price of cell phone to fixed line calls received similar ratings
with an average of 4.13 in Dominica, 3.94 in Grenada, 4.32 in Saint Lucia and 4.49 in St
Vincent and the Grenadines.


Figure 26: Rating of Price of Local Calls

                                  Rating of Price of Local Calls

                5
               4.5
                4
               3.5
                3
      Rating




               2.5
                2
               1.5
                 1
               0.5
                0                                                    Local fixed to fixed calls
                     Dominica   Grenada    St Lucia   St Vincent     Local fixed to cell phone calls
                                                        and the
                                                                     Local cell phone to fixed calls
                                                      Grenadines
                                                                     Local cell phone to cell phone calls

Source: ECTEL

5.2.5.4 International Calls
Respondents were presented with a number of options and asked the most common
method used for international calls. The majority of respondents in Dominica (50%) used
a fixed line phone, however in Grenada (548%) and Saint Lucia (48%) and St Vincent
and the Grenadines (59%) the majority of respondents used a pre-paid cell phone. The
least popular option was a public payphone with 2% in Dominica, no one in Grenada, 4%
in Saint Lucia and 1% in St Vincent and the Grenadines selecting this option.




                                                                                                       80
Figure 27: Main Method for Making International Calls
                                  Main Method for International Calls




  St Vincent and the
      Grenadines




           St Lucia




           Grenada



                                                                                 Fixed line phone
          Dominica                                                               Pre-paid cell phone
                                                                                 Post-paid cell phone
                                                                                 Public pay phone
                       0%   20%         40%           60%           80%   100%   Pre paid calling card
                                                                                 others


Source: ECTEL

5.2.5.5 Amount Spent on International Calls
Respondents were asked how much was spent on average each month on international
calls from a fixed line and from a cell phone. Across surveyed states more than 64% of
respondents reported spending less than $100 on international calls, from a fixed line.
Nine percent of respondents in Dominica and Grenada, 4% in St Luca and 1% in St
Vincent and the Grenadines reported spending more than $300.

For international calls from a cell phone more than 85% of respondents across the
surveyed states reported spending less than $100. No one in Dominica, 3% of
respondents in Grenada, 5% in Saint Lucia and 1% in St Vincent and the Grenadines
reported spending more than $300.




                                                                                                    81
Figure 28: Amount Spent on International Calls from a Fixed Line and Mobile
Phone
           Amount Spent on International Calls from Fixed Line                                   Amount Spent on International Calls from a Mobile Phone

  100%
                                                                                          100%
  90%
                                                                                          90%

  80%                                                                                     80%

  70%                                                                                     70%

  60%                                                                                     60%                                                           More than$ 300
                                                                                                                                                        $200 - $300
  50%                                                                                     50%
                                                                                                                                                        $100-$200
  40%
                                                                                          40%                                                           $1-$100

                                                                                          30%
  30%
                                                                                          20%
  20%

                                                                        M ore than$ 300
                                                                                          10%
  10%                                                                   $200 - $300
                                                                        $100-$200          0%
   0%                                                                   $1-$100                     Dominica   Grenada     St Lucia    St Vincent and
         Dominica       Grenada        St Lucia    St Vincent and the
                                                       Grenadines
                                                                                                                                      the Grenadines


Source: ECTEL

5.2.5.6 Satisfaction with Price of International Calls Services
In the surveyed states, most respondents, 42% in Dominica and Grenada, 46% in Saint
Lucia and 43% in St Vincent and the Grenadines indicated that the reduction in rates for
international calls did not change their calling pattern. This may be because respondents
generally felt that the price of international calls was still very high.

Respondents were asked to give their opinion of the prices of international using the scale
very low(1), low(2), priced right(3), high(4), very high(5). Across the surveyed states
respondents indicated that international calls from a fixed line was high with an average
rating of 4.46 in Dominica, 4.13 in Grenada, 4.03 in Saint Lucia and 4.00 in St Vincent
and the Grenadines. The price of international calls from a cell phone received a rating of
4.44 (high) in Dominica while it was rated slightly more favourably in Grenada (3.77),
Saint Lucia (3.85) and St Vincent and the Grenadines (3.93).




                                                                                                                                                                      82
Figure 29: Rating of Price of International Calls
                              Rating of Price of International Calls


    5.00

    4.50

    4.00

    3.50

    3.00

    2.50

    2.00

    1.50

    1.00

    0.50

    0.00
            Do minica     Grenada        St Lucia    St Vincent and the
                                                                          International calls from fixed line
                                                         Grenadines
                                                                          International calls from cell phone


Source: ECTEL

5.2.6 INTERNET ACCESS

5.2.6.1 Type of Access Available
Respondents were asked which Internet services were available in their area. The results
are presented in table 24 below. In all states surveyed the majority of respondents did not
know whether the different types of Internet access were available to them. Generally
respondents were more aware of the availability of dial-up access and less aware of
wireless Internet access. Fifty-five percent of respondents in Dominica, 62% in Grenada,
47% in Saint Lucia and 63% in St Vincent and the Grenadines stated that they did not
know if dial-up Internet access was available whereas 93% in Dominica, 82% in
Grenada, 89% in Saint Lucia and St Vincent and the Grenadines were not aware of the
availability of wireless access. This may be because while dial-up Internet access has
been available for some time the other options are still quite new to the market and in
some cases wireless access is not yet available.

Interestingly, 32% of respondents in Saint Lucia indicated that Internet access via cable
modem was available, but this service is not provided in Saint Lucia. It is possible that
the respondents confused cable modem with cable TV which is also provided by Cable &
Wireless in Saint Lucia.




                                                                                                            83
Table 24        Type of Internet Service Available

                                 Dominica    Grenada    Saint Lucia    St Vincent and the
     Service                       (%)         (%)          (%)         Grenadines (%)
 Dial up Internet
     service         Available     45.0        26.9        51.8              36.2
                       Not
                     available      0.0        10.7         1.0               0.9
                    Don't Know     55.0        62.4        47.2              62.9
 Cable modem         Available     32.6         2.4        31.5              29.8
                       Not
                     available      0.5        14.4         3.1               2
                    Don't Know     66.8        83.2        65.4              68.2
      DSL            Available     27.8         5.9        42.9              26.5
                       Not
                     available      1.7        13.8         3.2               2
                    Don't Know     73.9        80.3        53.9              71.5
     Wireless
 Internet access
  (3G phone or
      Wi-Fi)         Available      4.9         6.8         4.5               5.2
                       Not
                     available      2.2        11.2         6.8               6.4
                    Don't Know     92.8         82         88.7              88.5
Source: ECTEL



5.2.6.2 Personal Internet Access
A minority of respondents, 21% in Dominica, 8% in Grenada, 28% in Saint Lucia and
12% in St Vincent and the Grenadines, have a computer with Internet Access. Of the
respondents with no Internet access also a minority, 17% in Dominica, 11% in Grenada,
27% in Saint Lucia and 22% in St Vincent and the Grenadines intended to get Internet
access in the next year.

In all surveyed states the principal main reason cited for not having Internet access was s
I don’t own a computer (57% in Dominica, 50% in Grenada, 55% in Saint Lucia and 60%
in St Vincent and the Grenadines). This was followed by don’t need to use Internet in
Dominica and Grenada, Internet service costs too much in Saint Lucia and can use
Internet elsewhere in St Vincent and the Grenadines.




                                                                                            84
Figure 30: Personal Internet Access
                               Personal Internet Access


    100%



     80%


                                                   72.3
     60%          79.2
                                  90.7                              88.3



     40%



     20%
                                                   27.7
                  20.8
                                  8.8                               11.5
      0%
                Dominica        Grenada          St Lucia    St Vincent and the
                                                                                  No
                                                                 Grenadines
                                                                                  Yes

Source: ECTEL

5.2.6.3 Type of Internet Access
Respondents with Internet access were asked how they accessed the Internet. In
Dominica just under one third used dial-up followed by 24% with cable modem and 22%
with ADSL. However a significant proportion, 20% indicated that they did not know the
method used to access the Internet. Most respondents in Grenada (62%) used dial-up
access followed by wireless (25%) and ADSL (15%). Grenada was the only surveyed
state with a significant number of wireless Internet users.

Saint Lucia recorded the high ADSL usage with 52% of respondents stating that this was
the method used for Internet access. This was followed by 34% using dial-up access. In
St Vincent and the Grenadines most respondents (46%) used dial-up followed by 30%
with ADSL and 24% with cable modem.




                                                                                       85
Figure 31: Type of Internet Access
                           Figure Type of Internet Access

    100%

     90%
     80%
                                                         29.6
     70%                     15.4
                  22.20
     60%                                   53
                             5.8

     50%                                                 24.1

                  24.40
     40%
                                           0
     30%                     61.5
                                                                     Don't know
     20%                                  34.8
                                                         46.3
                  31.10                                              Other high speed access
     10%
                                                                     Wireless or cellular
      0%                                                             ADSL
                Dominica   Grenada      St Lucia    St Vincent and
                                                                     Cable Modem
                                                   the Grenadines
                                                                     Dial up modem

Source: ECTEL



Respondents with dial-up access were asked why they did not have high-speed Internet
access. The most common reason given in Dominica, Saint Lucia and St Vincent and the
Grenadines was that high speed access was too expensive. A number of respondents
however, 13% in Dominica, 7% in Grenada, 28% in Saint Lucia and 11% in St Vincent
and the Grenadines indicated that they were not interested in high speed access. Other
reasons given included waiting for a connection.

5.2.6.4 Internet Service Provider
In all surveyed states the incumbent Cable & Wireless is the dominant Internet Service
Provider and is the sole Internet provider in Saint Lucia. In Dominica, 79% of
respondents use Cable & Wireless and 21% use Marpin Telecoms and Broadcasting Ltd
for Internet access. Eighty seven percent of respondents in Grenada use Cable & Wireless
with 12% using the wireless providers Digicel or Cingular Wireless. In St Vincent and
the Grenadines 76% of respondents use Cable & Wireless with 24% using Karib Cable as
Internet Service Provider.




                                                                                            86
Figure 32: Internet Service Provider
                                    Internet Service Provider


  St Vincent and the
                                         76
      Grenadines



            St Lucia                                 100




            Grenada                           87.8




          Do minica                      79


                                                                                                  Cable and Wireless
                       0%   20%          40%               60%           80%         100%
                                                                                                  Alternative Provider

Source: ECTEL

5.2.6.5 Amount Spent on Internet Access
Respondents were asked how much was spent each month on Internet access. Most
persons in Dominica (60%) and St Vincent and the Grenadines (85%) reported spending
less than $100. The majority of respondents in Grenada (53%) and Saint Lucia (56%)
however reported spending between $100 and $200 per month. In all surveyed states less
than 8% reported spending more than $200.

Figure 33: Amount Spent on Internet Access
                             Amount Spent on Internet Access



  St Vincent and the
                                                84.6                                    15.4
      Grenadines




           St Lucia          41.6                                        56.4




           Grenada           40                                        52.5




          Dominica                  60                                          35


                                                                                                          -$1
                                                                                                        $1 00
                       0%   20%               40%                60%            80%            100%     $100-$200
                                                                                                        More than $200




                                                                                                                     87
5.2.6.6 Satisfaction with Internet Service
Respondents were asked to rate the Internet service on a scale from 1(not satisfied) to 10
(completely satisfied). In all states surveyed more than half of the respondents with
Internet access indicated that they were satisfied with their service. In Dominica 56% of
respondents gave their Internet service rating of 7 or more, 60% in Grenada, 55% in Saint
Lucia and St Vincent and the Grenadines had the highest level of satisfaction with 67%
rating the service a 7 or better.

Figure 34: Satisfaction with Internet Service
                                           Satisfaction with Internet Service



  St Vincent and the
                            9.6           23.1                             67.3
      Grenadines




           St Lucia         11.3                  34                              54.8




           Grenada           11.9               28.6                          59.5




           Dominica     5.1                 38.5                                  56.4


                                                                                                            Unsatisfied
                       0%           10%   20%      30%   40%   50%   60%      70%        80%   90%   100%   Neutral
                                                                                                            Satisfied

Source: ECTEL

For respondents who were dissatisfied with their Internet service most common reason
cited by persons in Dominica was cost (29%) while in Grenada (48%), Saint Lucia (38%)
and St Vincent and the Grenadines (30%) the main reason was that the service was too
slow.


5.2.7 DIRECTORY SERVICE

5.2.7.1 Personal Use
In Dominica (35%), Grenada (32%) and St Vincent and the Grenadines (35%) a minority
of respondents indicated that they used directory services while Saint Lucia recorded the
highest usage with 50% of respondents stating that they used directory service.




                                                                                                                        88
Figure 35: Use of Directory Service
                              Use of Directory Assistance


       100%
       90%
       80%                                        50
       70%          65            68.1                            64.7

       60%
       50%
       40%
       30%                                        50
       20%          35            31.9                            35.3

        10%

        0%
                Dominica       Grenada        St Lucia   St Vincent and the        no
                                                             Grenadines
                                                                                   Yes

Source: ECTEL

In Dominica the most common reason given for not using directory service was can use
the phone book/look up numbers myself (44%), followed by have no need to look up
numbers (20%). The responses were similar in Grenada with can use the phone book/look
up numbers myself (37%), followed by have no need to look up numbers (27%). In Saint
Lucia however the most common reasons given were reversed with have no need to look
up numbers (37%) followed by can use the phone book/look up numbers myself (34%).
The results in St Vincent and the Grenadines were similar to Saint Lucia with have no
need to look up numbers (37%) followed by can use the phone book/look up numbers
myself (34%).

5.2.7.2 Satisfaction with Directory Service
Respondents were asked to rate their level of satisfaction with directory assistance on a
scale from 1(not satisfied) to 10 (completely satisfied). In all states surveyed more than
sixty percent of the respondents indicated that they were satisfied with directory
assistance. In Dominica 60% of respondents gave directory assistance a rating of 7 or
more, 67% in Grenada, 70% in Saint Lucia and St Vincent and the Grenadines had the
highest level of satisfaction with 72% rating the service 7 or better.




                                                                                         89
Figure 36: Satisfaction with Directory Assistance
                                     Satisfaction with Directory Assistance




   St Vincent and the       8.6      19                        72.4
       Grenadines



                              1
                             1 .6     18.7                        69.7
            St Lucia



                              14.3         19.2                    66.5
            Grenada



                              15.4            24.2                    60.4
           Dominica


                       0%            20%             40%    60%              80%   100%   Unsatisfied
                                                                                          Neutral
                                                                                          Satisfied

Source: ECTEL



For respondents who were dissatisfied with directory assistance the most popular reason
cited by persons in Dominica was it used to be fee/cost too much (39%), followed by
slow service ((18%). Respondents in Grenada cited the opposite with the most common
reason given as slow service (34%) followed by it used to be fee/cost too much (16%).

In Saint Lucia the reasons were similar to Grenada with slow service (23%) followed by
it used to be fee/cost too much (10%) as the two most common responses. Respondents in
St Vincent and the Grenadines reported can’t reach a local operator (32%) and slow
service as the top two reasons for their dissatisfaction. Other reasons included can’t find
the listings that I know are listed and get wrong numbers/don’t give me correct number.
In all surveyed states, 15 to 20% of respondents gave no specific reason for their
dissatisfaction.

5.2.8 AWARENESS OF REGULATOR
Respondents were asked if they were aware that the National Telecommunications
Regulatory Commission regulates telecommunications service providers. In each state
surveyed less than 25% of respondents gave a positive response. Respondents in
Dominica had the greatest awareness with 29%, giving a positive response. In Grenada
19% of respondents answered yes 23% in Saint Lucia St Vincent and the Grenadines.




                                                                                                 90
Figure 37: Awareness of National Telecommunications Regulator
                       Awareness of National Telecommunications Regulator


  St Vincent and the
                              22.6                    58.1                      19
      Grenadines



           St Lucia           22.7                       64.6                        12.1




           Grenada            19                        70.7                         10.3




          Do minica                28.6                        63.2                    8.1

                                                                                                     Yes
                       0%                 20%   40%            60%      80%                 100%     No
                                                                                                     No t sure

Source: ECTEL

Respondents were also asked if they were aware that ECTEL is a Regional advisor on
telecommunications, the response was only slightly more favourable, in Dominica and
Saint Lucia 34% said yes, 17% in Grenada, and 29% in St Vincent and the Grenadines.

Figure 38: Awareness of Regional Telecommunications Authority
                       Aw areness of Regional Telecom m unications Authority



  St Vincent and the
                                   28.8                 53.6                  17.1
      Grenadines



           St Lucia                 34.4                       54.2             10.6




           Grenada          17.4                      71.1                       1
                                                                                1 .5




          Do minica                 34.2                        58.5                 7.3

                                                                                                   Yes
                                                                                                   No
                       0%                 20%   40%          60%       80%             100%
                                                                                                   No t sure

Source: ECTEL




                                                                                                           91
5.2.9 CONSUMER COMPLAINTS
When asked what they would do if not satisfied with telecommunications provider, in all
surveyed states, more than 75% of respondents indicated that they would complain to the
service provider. Eighty six per cent of respondents in Dominica said they would
complain to the provider, 90% in Grenada, 77% in Saint Lucia and 85% in St Vincent
and the Grenadines. Other options included complain to the NTRC, switch service
provider and do nothing.

Figure 39: Handing Dissatisfaction with Telecom Service




Source: ECTEL
Multiple responses allowed




                                                                                    92
                                  REFERENCES
Brown, Franklin. “Mobile Competition and its Impact: A Case Study of Jamaica”.
   Caribbean Journal of Public Sector Management 5(2): May 2004.

Eastern Caribbean Central Bank. Annual Economic and Financial Review, 2004.

Eastern Caribbean Telecommunications Authority. ECTEL Fifth Anniversary Magazine,
   2005.

Elixmann Dieter, Rolf Schwab and Cornelia Stappen. Development Of The
   Telecommunications Market in Germany Since Liberalization, 2003.

George, Calixte. “Historical Overview of Telecommunications Liberalization in ECTEL
  Member States”. ECTEL Fifth Anniversary Magazine 2005: 23-25.

International Telecommunication Union. ICTs in the Eastern Caribbean: Saint Lucia
   Case Study, June 2004.

Macro Environment and Telecommunications. Hp. Online. Available:
  http://cbdd.wsu.edu/kewlcontent/cdoutput/TR501/page27.htm. 5 Feb. 2006.

Office of Utilities Regulation Surveys. Hp. Online. 2006. Office of Utilities Regulation.
   Available:http://www.our.org.jm/new/Utilities/Telecoms/Surveys/telecomsurveys.asp.
   2005.

Oregon Public Utility Commission. Telecommunications Consumer Survey, February
  2005.

The World Bank Group. Organization of Eastern Caribbean States (OECS)
Telecommunications
   Reform Project Project Appraisal Document, Report No: 17772-LAC, Washington,
   D. C. 1998.

The World Bank Group. “Telecommunications Reform in the OECS Impacts on Prices
  and Services” A joint report of the Eastern Caribbean Telecommunications Authority
  and the World Bank Group

USAID/CARANA ECITCT Project. “OECS/Telecommunications Liberalization
  Programme, Impact Assessment: ECTEL States” January 2004.




                                                                                      93

								
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