Roaming Revenues an Opportunity for Caribbean Operators

Although geographically close, the mobile markets of the Caribbean islands are at different stages of development. According to the new Yankee Group report mobile penetration rates in Jamaica and Puerto Rico are already more than 40%, however penetration rates in Cuba and Haiti are still less than 2%. Caribbean mobile markets have the same characteristics as Latin American markets: poor income distribution, with middle- and low-income groups comprising the vast majority of the population.

"One consequence of poor income distribution is that the majority of mobile phone users opt for prepaid plans that do not require monthly fees," says Luis Minoru, Yankee Group Wireless/Mobile senior analyst. "The major Caribbean mobile markets have room to grow. However, sustainable growth is the main challenge. Operators are increasing the number of subscribers with little concern for the ability of new users to pay for mobile services. In some Caribbean countries, the penetration seems too high in comparison with income. Unless the informal economy has a larger impact in the region than elsewhere, operators are offering promotions that attract users who eventually will fail to pay."

Given that the Caribbean is the preferred destination of many North American and European tourists, the Yankee Group recommends that operators give special attention to issues such as branding, roaming, and long-distance services. Carriers should heavily promote call center services that help tourists use their mobile terminals to make long-distance calls while traveling."

Posted to the site on 21st October 2003