Telecommunications Status in Grenada
Status of Telecommunications in Grenada March 2002 - 2006
Overview
In Grenada, the telecommunications sector remained buoyant contributing an estimated 13.2 per cent to GDP in 2005. For the period ending March 2006, total revenues increased by 10.3 per cent to $156.6 million. Fixed line services accounted for the largest share (48 per cent) of revenues, followed closely by mobile services with a share of 44 per cent while Internet services’ contribution remained relatively small at five per cent. Direct employment in the sector grew by 13.1 per cent to 207. Total investment stood at $29.6 million, an increase of 14.2 per cent over March 2005 figures, as Grenada continued its recovery from the ravages of Hurricane Ivan.
In 2005, Digicel acquired operations of Cingular Wireless in Grenada reducing the number of mobile providers to two (2). For the period ending March 2006, no new licences were issued; at March 2006 nine (9) licences had been issued in Grenada, three (3) for Fixed Public Telecommunications, five (5) for Public Mobile Telecommunications and two (2) for Internet Network and Services. The incumbent, Cable & Wireless, remains the sole provider of fixed and Internet Services and launched a flat rate international voice service using VoIP technology in 2005.
Figure 1&2: Revenue & Investment in the telecommunication sector in Grenada
Source: ECTEL/operators
Note: Includes estimates where ECTEL did not receive data from operators
Fixed Line Services
The number of fixed lines in service rose by 17.3 per cent to 29,583 at March 2006, representing a penetration of 27.8 per cent, after declining by 8.9 per cent in the
previous year. This phenomenal growth reflected an increase in the number of lines in service following the restoration of infrastructure destroyed by the hurricane. However, the number of fixed lines in service remained well below pre-liberalisation levels.
Notwithstanding the absence of legal, policy and regulatory barriers to entry into the market for fixed line access, competition has been constrained by supply side restrictions. Consequently, while three licences have been granted to new entrants, the incumbent remains the major market player in the provision of fixed lines services in Grenada.
The fixed line market continues to be regulated under a Price Cap Plan. In keeping with the rate commitment in the Price Cap Plan, off peak rates for local fixed to fixed calls decreased 20 per cent while peak rates held at $0.07. Peak rates for fixed to mobile fell 7 per cent and off-peak rates fell 8 per cent.
Outgoing local traffic from fixed lines increased 9.3 per cent to 271 million minutes at March 2006, compared with a decline of 6.0 per cent in 2005. Fixed line traffic continues to dominate local communications accounting for 78.4 per cent of local outgoing traffic, 95 per cent of local fixed traffic was fixed-to-fixed calling.
Figure 3&4: Telecommunications Penetration and Domestic Traffic in Grenada
Source: ECTEL/operators
Note: Includes estimates where ECTEL did not receive data from operators
Mobile Services
Mobile telephony continues to be an important form of telecommunications services in Grenada owing to increased affordability and access to prepaid services with competition in the market. However, there was a reversal in subscription growth post Hurricane Ivan. At March 2006, the number of subscribers fell 9 per cent to 70,684, representing a penetration of 66.5, with 88 per cent prepaid subscribers, up from 49 per cent in 2002.
Figure 5: Mobile Subscribers in Grenada
Source: ECTEL/operators Note: Includes estimates where ECTEL did not receive data from operators
Statistical Tables
Table 1: Telecommunications Revenues(EC$ Million)
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
$128 |
$114 |
$114 |
$142 |
$157 |
Note: Includes estimates where ECTEL did not receive data from the operators
Table 2: Fixed Line Penetration
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
29% |
29% |
26% |
21% |
28% |
Table 3: Mobile Penetration
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
7% |
21% |
67% |
74% |
67% |
Note: Includes estimates where ECTEL did not receive data from the operators
Table 4: Internet Penetration
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
4% |
4% |
5% |
5% |
6% |
Note: Includes estimates where ECTEL did not receive data from the operators
Table 5: Local Traffic Originating from a Fixed Line
(Millions of minutes)
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
330 |
461 |
248 |
271 |
Table 6: Local Traffic Originating from a Mobile Phone
(Millions of minutes)
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
6 |
18 |
42 |
74 |
Table 7: International Outgoing Traffic
(Millions of minutes)
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
14 |
14 |
14 |
19 |
34 |
Table 8: International Incoming Traffic
(Millions of minutes)
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
35 |
40 |
50 |
61 |
35 |
Table 9: Residential Fixed Line Access Charge (EC$)
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
45.00 |
54.00 |
54.00 |
26.40 |
26.40 |
Table 10: Local Fixed to Fixed Calling Rate
(EC$ per minute)
|
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
Day |
0.09 |
0.09 |
0.07 |
0.07 |
Evening |
0.08 |
0.08 |
0.05 |
0.04 |
Weekend |
0.06 |
0.06 |
0.05 |
0.04 |
Table 11: Local Fixed to Mobile Calling Rate
(EC$ per minute)
|
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
Day |
0.81 |
0.81 |
0.76 |
0.71 |
Evening |
0.80 |
0.80 |
0.75 |
0.69 |
Weekend |
0.78 |
0.78 |
0.75 |
0.69 |
Table 12: Outgoing International Rate from a Fixed Line (EC$ per minute)
|
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
ECTEL States |
0.50 |
0.50 |
0.50 |
0.50 |
C&W Caribbean |
0.66 |
0.66 |
0.66 |
0.66 |
Non C&W Caribbean |
0.99 |
0.99 |
0.99 |
0.99 |
US and Europe |
1.65 |
1.65 |
1.65 |
0.90 - 1.65 |
Rest of World |
2.20 |
2.20 |
2.20 |
1.25 - 2.20 |
Table 13: Telecommunications Investment
(EC$ million)
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
6 |
13 |
51 |
26 |
30 |
Note: Includes estimates where ECTEL did not receive data from the operators
Table 14: Employment in Telecommunications
Mar-02 |
Mar-03 |
Mar-04 |
Mar-05 |
Mar-06 |
219 |
172 |
190 |
183 |
207 |
Note: Includes estimates where ECTEL did not receive data from the operators
Table 15: Mid-year Population (Thousands)
2001 |
2002 |
2003 |
2004 |
2005 |
103 |
104 |
105 |
105 |
106 |
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$). Where it was necessary to convert from another currency to Eastern Caribbean dollars the following exchange rates were used:
JA$1 = EC$0.0406
TT$1 = EC$0.4221
BD$1 = EC$1.35
US$1 = EC$2.70
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.
10. The data for populations are the mid-year estimates from the Eastern Caribbean Central Bank.
11. Gross Domestic Product (GDP) data is based on the Eastern Caribbean Central Bank’s 2005 estimates.
At March 2006 the rates for mobile to mobile ranged from $0.38 for calls on the same network to $0.85 for calls between networks. On-net calls continue to be priced at a significant discount to calls between networks. The rates for mobile-to-fixed calls ranged from $0.70 to $0.85. Rates for mobile-to-mobile and mobile-to-fixed have remained relatively stable since liberalisation.
Local traffic originating from a mobile phone increased 76 per cent to 74 million minutes at March 2006, as mobile usage continues to increase closing in on fixed line usage. Local traffic from mobile phones accounted for 21 per cent of total local traffic in 2006 compared with 14 per cent in 2005. Eighty-seven (87) per cent of local mobile traffic is mobile-to-mobile calling.
International Voice Service
For the period ending March 2006 outgoing international traffic almost equaled incoming international traffic. Between 2002 and 2005 the ratio of incoming to outgoing international traffic averaged 3:1 but fell to a ratio of 1:1 in 2006. International outgoing traffic increased by 80.3 per cent to 34 million minutes while incoming traffic fell by 42.2 per cent. Mobile traffic dominated international voice traffic; 75.1 per cent of incoming international calls terminated on a mobile phone and 57.7 per cent of outgoing international calls originated from a mobile phone. The main reason for this development is the low price differential between fixed and mobile international calls.  |
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Figure 6&7: International Traffic and Rates to the US for Grenada Competitive forces continue to apply downward pressure on international rates. At March 2006, the rates for calls to the United States originating from a fixed line fell by 45 per cent to $0.90. Rates for calls to other ECTEL Member States were held at $0.50 and calls to non-ECTEL Caribbean islands remained in the range of $0.66 to $0.99. |
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Internet
Following marginal growth of 0.4 per cent in subscription at March 2005, Internet subscription rose by 19.8 per cent reaching 6,281 or a 5.9 per cent penetration at March 2006. The Internet market continues to lag behind the market for voice services in Grenada accounting for only 5.4 per cent of telecommunications revenues. The incumbent, Cable & Wireless continues to be the sole Internet Service Provider in Grenada.
Despite the modest overall growth in Internet access there has been significant shift away from dial-up to high speed Internet access. At March 2006, approximately 61.8 per cent of Internet subscribers had broadband access compared to 4 per cent at March 2002.
The rates of dial-up Internet access have remained constant in Grenada for the past four (4) years, while the rates for high speed internet access declined up to 50 per cent at March 2004 remaining unchanged to March 2006. Internet access is also available through advanced wireless last mile broadband technologies such as Wi-Fi with WiMAX just over the horizon. Wi-Fi hotspots are being used to offer public broadband access at airports, hotels and other public places. |
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Figure 8: Internet Subscribers in Grenada Source: ECTEL/operators Note: Includes estimates where ECTEL did not receive data from operators |