27
Introduction
Key Definitions
Key Market Trends & Observations
Economic Indicators for the BVI
Main Telecoms Indicators
Total Revenue in the Telecoms Sector
Total Mobile Communications Investment
Employment in the Telecommunications Sector
Fixed Line Subscribers & Revenue in the BVI
Fixed Line Penetration Across the Caribbean
Growth Rate of Fixed Line Subscribers across the Caribbean
Mobile Subscribers, Revenue & Traffic in the BVI
Benchmarking Postpaid subscribers to Prepaid subscribers
Benchmarking Mobile Penetration Rates Around the World
Average Revenue per User (ARPU) & Average Usage per User (AUPU)
Fixed Broadband Subscribers & Revenue in the BVI
Benchmarking Fixed Broadband Penetration Around the Caribbean
Distribution of Fixed & Mobile Broadband
Total Broadband (Fixed & Mobile) Penetration
Active Mobile Broadband Penetration
Growth Rate of Fixed Broadband Subscribers
Benchmarking Broadband Download Speeds
Growth Rate of Telecommunication Subscriptions by Service
Conclusion
2
This is the third annual telecommunications market data report which is based on data collected from the licensed public suppliers in the telecommunications market in the British Virgin Islands (BVI): LIME, Digicel and CCT. This report excludes BVI Cable TV.
The report is produced by the Economics Department of the Telecommunications Regulatory Commission (TRC) as part of monitoring and assessing the performance and competitiveness of the telecommunications sector in the BVI.
3
This report looks at the state and development of the telecommunication markets (fixed line, mobile and broadband) comparing the BVI to similar island nations and islands in the Caribbean. The report covers data from 2009-2013 and presents data for 2013 for the first time.
Average Revenue per User (ARPU) – measures the average monthly revenue generated percustomer
Average Usage per User (AUPU) – measures the average monthly usage generated percustomer
Download speed – the number of bytes per second that data travels from a remote or localserver to the user’s device
Gross Domestic Product (GDP) – the official measure of a country’s economic output
Growth rate – the amount of increase that a specific variable has gained within a specificperiod and context
Penetration rate – a measure of the level of adoption of a particular product or service by thetotal population
Teledensity (telephone density) – the number of telephone connections for every hundredindividuals living within a country.
4
Fixed line penetration is gradually falling in line with the global trend in fixed andmobile substitution.
High mobile teledensity continues to characterize the BVI telecommunications marketto 49,521 subscribers in 2013 as many customers have multiple SIM cards.
Active mobile broadband penetration level in BVI is high at 57% in 2013 as mobilephones and devices allow customers to access the internet on the go.
Mobile data traffic increased by 24% in 2013 as customers rely on the internet for socialmedia and mobile apps.
Mobile voice traffic decreased by 40% in 2013 particularly due to a decline in outgoinginternational calls.
Fixed broadband growth is slowing down at an average of 4% every year. Penetrationlevels have fallen since 2009 to 22% in 2013 and BVI is lagging behind in speed andvalue.
5
Economic
Indicators
2009 2010 Growth
(%)
2011 Growth
(%)
2012 Growth
(%)
2013 Growth
(%)
GDP (US $) 876,811,000 894,437,000 2% 915,592,000 2% 909,355,000 -1% 915,601,000 1%
Number of
households
11,303 11,677 3% 11,224 -4% 11,311 1% 11,628 3%
Total
population
28,882 29,537 2% 28,103 -5% 28,028 0% 28,514 2%
6
Source: Development Planning Unit (DPU)
Indicators 2009 2010 2011 2012 2013
Fixed line services
# of fixed line
subscribers
14,132 12,886 12,773 12,496 13,180
Fixed line
penetration
49% 44% 45% 45% 46%
Mobile service
# of mobile
subscribers
47,031 47,524 46,493 49,224 49,521
Mobile
penetration
163% 160% 165% 176% 174%
Broadband services
# of fixed
broadband
subscribers
7,736 6,969 5,916 6,213 6,410
Fixed
Broadband
penetration
27% 23% 21% 22% 22%
Telecommuni
cation
revenues (in
millions)
$62 $73 $84 $65 $61
CAPEX (in
millions)
$7 $3 $9 $15 $9
OPEX (in
millions)
$33 $33 $32 $35 $36
Number of
Employees in
the Telecoms
sector
309 293 148 140 141
Although fixed line subscriptionsincreased by 5% in 2013, overtimesubscriptions have been declining by2% every year.
On average, mobile subscriptionsincreased by 1% every year due tofixed and mobile substitution and to anincrease reliance on mobile dataservices.
Since 2009, fixed broadbandsubscriptions declined by 17% whilerevenues remained high despite lowspeeds.
Total telecommunications revenuecontinue to decline particularly due todecreasing fixed line revenues.
7
In 2011, revenue increased for theentire telecommunications sector. Forthat year, mobile revenues increased by13% and other services increased by61% which contributed to higherinternational capacity sales and towerrentals.
In 2013, telecommunications revenuewas 6% lower than the year before andhas been declining since 2011.
The decline in 2013 was affected bylower revenues from retail servicesparticularly from fixed and mobileservices which had a combined 28%decrease in revenue.
However, fixed broadband revenuesincreased by 12% from 2012-2013.
8
$62,960,076
$73,841,537
$84,259,374
$65,163,655
$61,092,896
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2009 2010 2011 2012 2013
US
$Telecommunications Revenue in the BVI
The investment in mobile
communications in 2013 was for
acquiring and upgrading property
and networks of public suppliers and
for the provision of services (both
mobile voice and mobile
broadband) within the BVI.
9
$2,141,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2013
US
($
)TOTAL ANNUAL MOBILE
COMMUNICATIONS INVESTMENT
IN 2013
10In 2009: 64% males & 36% females – proportions remain roughly the
same.
309293
148 140 141
2009 2010 2011 2012 2013
Number of Employees working in
the Telecommunications Industry
35%
65%
Total Employees By Gender (%)
in 2013
females
males
11BV Islander – a native born island resident or a person who has been granted the status of a
native-born resident *Please see full definition in theVirgin Islands Constitution Order 2007
77%
23%
Distribution of Employees By Resident Status in 2013
BVIslander Non-BVIslander
49
4445 45
46
2009 2010 2011 2012 2013
Fixed subscribers per 100
inhabitants in the BVI
Since 2009, the number ofsubscribers who use and accessfixed lines declined by 7% as moresubscribers use mobile phones.
Revenue is falling and demand isincreasing. On average, fixed linerevenues are declining by 13%every year.
Fixed line voice traffic is fallingwhich is in line with global trends asmore subscribers rely on mobilephones for voice and VoIP calls. Onaverage, fixed line voice traffic isdeclining by 32% every year.
12
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2009 2010 2011 2012 2013
US
$
Fixed Line Voice Revenue in the BVI
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2009 2010 2011 2012 2013
Min
ute
s
Fixed Line Voice Traffic
The BVI ranks second in the
Caribbean with fixed line
penetration of 46%.
13
Source: BMI, TATT
50%
46%44%
35%
31%
26%
22% 22% 22% 21% 19%
16%
9%
4%1%
0%
10%
20%
30%
40%
50%
60%
FIXED LINE PENETRATION RATE
IN 2013
Like the rest of the world, the BVI is turningincreasingly towards mobile solutions andaway from the traditional fixed linetelephone. Since 2009, mobile subscribersincreased by 5%.
On average, mobile revenues aredecreasing by 2% every year.
Declining mobile revenues comprises areduction in mobile voice calls especiallyto outgoing international destinations.
Mobile voice traffic decreased in 2013mainly driven by a 65% decrease ininternational calls.
Subscribers continue to have a growingreliance on mobile data services such associal media and various Apps which is inline with global trends. Mobile datavolumes increased by 24% in 2013.
14
163 160 165176 174
2009 2010 2011 2012 2013
Mobile subscribers per 100
inhabitants in the BVI
Mobile Voice
Traffic
(minutes)
2013
Domestic 69,908,547
International 32,672,039
Total 102,580,5860
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
2009 2010 2011 2012 2013
Proportion of Mobile Voice Traffic to Mobile
Data Traffic
Total Mobile Voice minutes Total Mobile Data Volumes (MB)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2009 2010 2011 2012 2013
US
$
Mobile Revenue in the BVI
15Approximately 76% of BVI’s mobile subscribers are on prepaid plans.
38,07736,866
35,338
37,227 37,819
8,95510,658 11,155
11,997 11,702
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2009 2010 2011 2012 2013
Breakdown of Mobile Subscribers by Type
Prepaid Postpaid
81%78%
76% 76% 76%
19%22%
24% 24% 24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 2010 2011 2012 2013
Breakdown of Mobile Subscribers by Type
Prepaid Postpaid
16The BVI’s mobile penetration of 174% compares to developing nations average of 89%.
Source: ITU
63%
89%
89%
105%
109%
126%
128%
170%
174%
0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%
Africa
Asia & Pacific
Developing
Arab States
The Americas
Europe
Developed
CIS
British Virgin Islands
Mobile Penetration in 2013 Around the World
17
Source: ITU
The BVI has a high mobile penetration compared to similar island nations and
other Caribbean islands.
Source: BMI, TATT
174%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Mobile Penetration Rate in 2013
160%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Mobile Penetration Rate in 2010
18*ARPU per month in US$ *AUPU per month in minutes
0
100
200
300
400
500
600
700
800
2009 2010 2011 2012 2013
Mb
ps
Mobile Voice and Data AUPU
Mobile Voice AUPU Mobile Data AUPU
0
50
100
150
200
250
300
350
400
2009 2010 2011 2012 2013
Min
ute
s
Fixed Line AUPU
*AUPU per month in minutes
0
20
40
60
80
100
120
2009 2010 2011 2012 2013
Re
ve
nu
e
Fixed, Mobile and Broadband ARPU
Fixed Broadband ARPU Mobile ARPU Fixed ARPU
The number of fixed broadband
subscribers has decreased by 17%
since 2009.
Number of fixed broadband
subscribers are decreasing by 4%
per year meanwhile revenues are
stable. This implied that broadband
services have remained expensive.
19
27%
24%
21%22% 22%
2009 2010 2011 2012 2013
Fixed Broadband subscribers
per 100 inhabitants in the BVI
68%
60%
53% 55% 55%
2009 2010 2011 2012 2013
Proportion of households with
Fixed Broadband subscription
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2009 2010 2011 2012 2013
US
$
Fixed Broadband Revenue in the BVI
20The BVI has low penetration levels similarly to other Caribbean countries
despite being a high income territory with high demand.
Source: ITU
32%
26%
22%21% 21%
17%
12%
7%
5%
1% 0.2%
0%
5%
10%
15%
20%
25%
30%
35%
Martinique Barbados BVI Guadeloupe Puerto Rico Trinidad &
Tobago
Bahamas Dominica Jamaica Cuba Haiti
Fixed broadband Penetration in 2012
72% of total broadband users are
active mobile broadband users
which is line with global trend.
21
28%
72%
Distribution of Fixed Broadband & Mobile
Broadband Subscriptions in 2013
Fixed broadband subscribers Active mobile broadband subscribers
The BVI’s active mobile broadband*
penetration rate at 57% is above the
global average in 2013.
22
75%
57%
30%
20%
Developed BVI World Developing
Active Mobile Broadband Penetration Around the
World
Source: ITU
*Active mobile broadband subscriptions include active handset-based
(mobile phones) and computer based (USB/dongles).
The BVI ranks very low in the
average speed customers receive
when compared to other Caribbean
countries.
Weak competition and insufficient
bandwidth characterizes fixed
broadband services in the BVI
compared to other Caribbean
islands.
Speed isn’t solely determined by the
network, it is also affected by device
capabilities and user behavior.
23
10
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5.6
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(M
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AVERAGE DOWNLOAD SPEED BY
CARIBBEAN COUNTRY IN 2013
Source: Akamai
24
2.4
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Average Download Speed By Caribbean
Country in Q4 in 2012
Source: Akamai
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Average Download Speed By
Caribbean Country in Q4 in 2013
Source: Akamai
There is a wide gap in the average
download speed in the BVI in
comparison to the most connected
countries in the world
25
17.9
12.511.6 11.2 11.2
10.5 10.5
9.3 9.3 9.1
3.5
2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Top 10 Countries: Average Download Speed
(Mbps) vs. BVI in 2013
Source: Akamai
Declining growth in fixed linesubscriptions are in line with globaltrends to fixed and mobile substitution.
The CAGR growth rate in mobilesubscriptions increased by 1.31% since2009.
Lack of growth in fixed broadband forthe BVI is a concern based on quality ofservice and reliability.
Promoting the fixed broadband speedsto comparable levels as in Montserratand to the most connected countries inthe world is a priority. Thedevelopments of fiber is essential forthe BVI to stay competitive.
26
-1.26%
1.31%
-4.01%
-5.00%
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
Fixed line service Mobile service Fixed Broadband service
Compound Annual Growth Rate from 2009-2013 by
Type of Service
On average, fixed line voice traffic is falling by 32% every year asfixed penetration continues to fall in line with global trend infixed to mobile substitution.
Mobile telephony has become an integral part of everyday life ascustomers move away from traditional fixed line voice serviceand grow accustom to accessing mobile data typically on morethan one SIM card.
The marriage of mobile and internet via mobile broadbandallows users to access data on the move and no longer bephysically constrained by location. In 2013, mobile broadbandpenetration at 57% was higher than the global average. Forecastsare expected to increase in line with global trends.
Particularly in 2013, mobile data increased by 24% and mobilevoice traffic declined by 40%, which is driven by a decline inoutgoing international calls. Strong mobile data usage forecastssignal greater demand for LTE.
A key concern for the BVI is decline in fixed broadband servicesfrom 2009-2013, high revenues and the low bandwidth speedavailable. Regulatory intervention may be required to be on parwith the rest of the world.
0
100
200
300
400
500
600
700
800
2009 2010 2011 2012 2013
Mb
ps
Mobile Voice and Data AUPU
Mobile Voice AUPU Mobile Data AUPU
27
