Ahead of our TowerXchange Meetup Americas 2024 on 10th-11th of June, TowerXchange explored the investment opportunities and market growth of the Caribbean. We had a conversation with Teresa Wankin, Secretary General of CANTO, an association comprising operators, vendors, suppliers, and organisations in the Information and Communication Technology (ICT) sector, about why towercos are investing in the Caribbean.
AN OVERVIEW OF CANTO
CANTO is dedicated to addressing ICT issues in the Caribbean with a global perspective. The association’s policy strategy is directed by a board of directors appointed by its membership and executed by the staff of a permanent Secretariat located in Trinidad and Tobago. Funded by member contributions and revenue-generating projects, CANTO consists of a general assembly, a board of directors, and a Secretariat, headed by the Secretary General.
The organisation plays a crucial role in shaping the Information, Communication, and Technology industry in the Caribbean region and the Americas. As an industry association representing telecommunications companies across the Caribbean, CANTO provides a platform for dialogue among all stakeholders. While its members primarily include telecom MNOs, vendors, suppliers, regulators, and governments among its members.
Teresa Wankin will be expanding on this topic in our Roundtable: Caribbean Spotlight | Market overview: Challenges and opportunities at TowerXchange Meetup Americas 2024.
The Caribbean Market overview
The Caribbean market for telecommunications is characterised by its diverse population and geography, leading to significant variations in infrastructure from country to country. While some nations boast well-developed telecom systems, others struggle to provide basic services. Small populations and limited resources in many Caribbean countries pose challenges for securing the necessary investment for high-speed internet and reliable mobile services. Additionally, a lack of competition often results in a single provider dominating the market, leading to higher prices and limited services for consumers, and making it difficult for new companies to enter.
Despite these challenges, the demand for quality connectivity services is growing, presenting opportunities for infrastructure development. Key players like Cable & Wireless Communications (CWC), acquired by Liberty in 2016, operate under the BTC brand in the Bahamas and as FLOW in 15 other Caribbean locations. Digicel, headquartered in Jamaica, is another major operator, though it has faced financial difficulties recently. Other notable operators include América Móvil’s Claro brand in the Dominican Republic and Puerto Rico, and local players like TST in Trinidad and Tobago and ETECSA in Cuba.
The towerco market in the Caribbean is catching up with the rest of the Americas, with Phoenix Tower International and Innovattel/Torresec expanding their portfolios in the region. America Movil’s towerco Sites has a significant presence in the region too. American Tower has a presence in American territories in the Caribbean such as Puerto Rico. The evolving landscape indicates a significant potential for growth and investment in the Caribbean's telecommunications sector.
TowerXchange: What is the current state of the mobile network and wireless sector in the Caribbean and its growth potential over the next five years?
Teresa Wankin: In the Caribbean, we have two major providers, Cable & Wireless and Digicel, alongside smaller players in different countries. The market varies by country in terms of the number of players and licenses. There was a liberalisation of the sector around 2009, leading to increased competition. However, penetration rates vary depending on the provider and country. Looking ahead, the growth potential is significant, driven by factors such as increasing demand for data services, the expansion of 5G networks, and government initiatives to promote digital inclusion and economic development.
TowerXchange: How has CANTO contributed to the advancement of mobile and wireless telecommunications infrastructure in the Caribbean, and what are some notable successes?
Teresa Wankin, Secretary General, CANTO
CANTO plays a pivotal role as an industry association, facilitating dialogue among stakeholders to ensure conducive regulation. We also encourage partnerships and bring unique vendors to the region, benefiting both operators and vendors. Some notable successes include advocating for spectrum harmonisation across the region, promoting infrastructure sharing agreements to reduce costs, and facilitating knowledge exchange through our conferences and workshops.
TowerXchange: What unique opportunities does the Caribbean mobile network & market offer to investors that differentiate it from other regions?
Teresa Wankin, Secretary General, CANTO
The Caribbean holds significant potential for investors due to its population size, the importance of digital infrastructure, and governments' focus on digitalisation. Additionally, the region's geographical diversity presents opportunities for innovative solutions in areas such as disaster resilience and rural connectivity.
TowerXchange: How does CANTO facilitate collaboration between public and private sectors to enhance mobile and wireless ICT development in the region?
Teresa Wankin, Secretary General, CANTO
We organise forums, workshops, and conferences, providing platforms for dialogue between government regulators and the private sector. This facilitates understanding and ensures regulatory frameworks align with industry needs. Additionally, we engage in capacity building initiatives to empower stakeholders with the knowledge and skills necessary for effective collaboration and innovation.
TowerXchange: What are some of the main challenges facing the Caribbean mobile and wireless industry, and how is CANTO addressing these issues?
Teresa Wankin, Secretary General, CANTO
Challenges include spectrum allocation, cybersecurity, and the digital divide. CANTO works with governments to address these issues through advocacy, capacity building, and knowledge sharing. For example, we advocate for transparent and efficient spectrum allocation processes to ensure that operators have access to the frequencies they need for network deployment and expansion. Additionally, we collaborate with cybersecurity experts to develop best practices and guidelines for protecting networks and data from cyber threats.
TowerXchange: How does CANTO's partnership with international organizations like ITU and CARICOM benefit its members and the wider mobile network sector in the Caribbean?
Teresa Wankin, Secretary General, CANTO
Collaboration with organizations like ITU and CARICOM enables us to access resources, best practices, and expertise, enhancing our ability to address regional challenges and opportunities effectively. Through these partnerships, we can leverage global networks and platforms to advocate for the interests of our members and promote the development of robust and sustainable telecommunications infrastructure in the Caribbean.
TowerXchange: What role does CANTO play in promoting regulatory frameworks that encourage investment and innovation in the Caribbean mobile and wireless market?
Teresa Wankin, Secretary General, CANTO
CANTO advocates for transparent, predictable, and fair regulatory frameworks that foster competition, innovation, and investment. We engage with regulators and policymakers to ensure regulations support industry growth while protecting consumer interests. By providing input and recommendations based on industry expertise and best practices, we strive to create an enabling environment for operators and investors to thrive in the Caribbean market.
TowerXchange: What advice would you give to potential investors looking to enter the Caribbean market, and how can they leverage CANTO's resources and network to succeed?
Teresa Wankin, Secretary General, CANTO
Potential investors should capitalise on the region's growth potential and collaborate with CANTO to navigate regulatory frameworks and access valuable industry insights and connections. Our resources and network can significantly support their success in the Caribbean market. Additionally, we offer training programs, market intelligence reports, and networking opportunities that can help investors make informed decisions and establish strong partnerships within the region.