Friday, February 22, 2008The Battle Begins!

Diane DraytonThe Deregulation of Telecommunications in the BVI

Cell phones have lost their status symbol, at least in the BVI -- a casualty or testament to an environment that allows for equal opportunity for the three licensed providers of telecommunication services to vie for the customer’s satisfaction.

But how does this levelled playing field pan out for the greater population? Project Director for Cable and Wireless, Alan Dodds thinks the deregulated environment and in particular b-mobile, has expanded its consumer base within this market. “People think we have taken all CCT’s customers, but that’s not true. More people now have cell phones than ever before in the BVI; helpers, cleaners, barmaids and general blue collar workers have mobile phones because they are more affordable,” he said.

“Previously only those who had reasonable disposable income could afford a cell phone. Now everyone has a mobile,” Dobbs says. “B-mobile rates are significantly lower with free incoming calls and people are enjoying it. There are many who were never able to purchase or maintain a mobile phone before and now they can.” Dobbs says b-mobile has hit the population at several levels. “We have peeled off layers of the onion to open the market not only to the blue collar worker, but the retiree as well-- those who just need a cell phone in cases of emergency. We feel it is our social responsibility to keep people connected. We are tuned in and are sensitive to all consumers,” he said.

Office Manager at CCT Global Communications Derecia Scatliffe- Thomas agrees that the liberalized market has opened the door to more cell phone users. However she said CCT did lose customers in the transition. “Some of our customers did leave as a result of the introduction of our competitor’s products and services. We also had a number of customers who retained their service with us but purchased an additional cell phone from our competitor. Some are just loyal to CCT and wanted to retain their cell phone numbers. And we have actually had a number of customers return because now we can offer a better rate,” she said. Scatliffe-Thomas explained that CCT is still going strong and growing in the industry.

Just as significant as low rates are to being successful in the market is service reliability. B-mobile Project Manager explained creating a service that is reliable was crucial to b-mobile’s penetration of the market. “Though b-mobile is a newcomer to the block, we were welcomed because there was room to raise the customer’s experience. Through our strategic partner, we made a 15 million dollar investment in the BVI to create a network that allows calls to anywhere, at any time. Our main competitor was not able to service the entire island. If you are going to be profitable, you have to offer a better product. No matter how cheap the product is, if it is not reliable, it is not going to be competitive,” Mr. Dodds said.

Scatliffe-Thomas noted that CCT admits to having one major deficiency in its service, which made it an easy choice to switch service providers--that of incomplete network coverage. “We realize that there are dead areas, where the cell phone signals are lost or nonexistent. Currently, we are working on our network to improve and maintain that coverage and once that work is complete, CCT will become a true competitor in the market,” she said.

How does this levelled playing field pan out for the licensed providers? Dodds said b-mobile has thus far benefited tremendously and, in fact, commended the Government for the way in which it liberalized the market. “Government has approached the market sensibly. It has issued three licenses and allowed us to play in the space to see which can most satisfy the customer. After a period of time, the level of penetration will be assessed to determine if the market should be opened up again. The gauge used to determine the level of penetration is the percentage of persons with mobile service. I hope the market will be satisfied but if not, we may see another player,” he said. He explained that open markets such as these drive providers to look for ways to gain customers and provide positive experiences for them. This, in turn, helps maintain the needed consumer base necessary to remain operational. “The customers ultimately decide. It is essentially survival of the fittest,” he added.

CCT’s Derecia Scatliffe-Thomas said the level playing field has allowed for choice, which is good for everyone including service providers. It allows for the introduction of more creative ways to satisfy the customer pool and wherever there is competition, it is great for the customer, she added. Personally, she noted, “CCT has benefited from a more regulated environment because for the first time we receive the monetary benefits for calls terminating on our network. What is good for the goose is good for the gander.” It is important to note, that prior to deregulation, only b-mobile received benefits from calls terminating on their network.

Both representatives agree that the battle has just begun and that maintaining the top position would depend on who provides better products and services at the most competitive prices. For now, Scatliffe-Thomas touts, “The two of us will fight for the customer’s choice. Be prepared because CCT is coming back strong.”

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