Monday, January 01, 2007The transition to bmobile

Vance LewisCable & Wireless gets ready to take on a liberalized telecommunications market.

First-rate telecommunications services play a critical role in a modern economy and even more so in an economy such as that of the British Virgin Islands which is driven by financial services and tourism.

This, coupled with the fact that the BVI is deregulating this sector creates a very dynamic period for telecommunications in the territory and for Cable and Wireless. As the dominant provider of telecommunications in the territory and the sole provider of long distance and internet services, this is quite a challenging period for the company.

In 1960, the BVI depended solely on HF radio communications in any disaster. And even this, in some cases, required putting out 30 calls at scheduled hours to raise help. By 1961, government had installed a 20-line telephone system and later expanded it to a 100-line public telephone system.

The telephone switchboard was an Ericson PMBX with 20 lines, which was manned by a couple of operators. The subscribers had magneto telephones, which, when hand-cranked, generated ringing on the switchboard. The operators answered and connected the call to the requested subscriber. The government provided the service in conjunction with International Air Radio London, IACL, which supplied the technology. This partnership ended around 1965-66.

In 1967, when Cable & Wireless started operations in the British Virgin Islands, there were only fifty telephones. The company was the only one to respond to a government invitation to provide telecommunications in the country, on a license basis. At that time, very few companies had either the means, or the desire, to invest money in the region. This explains how Cable & Wireless won the contract with the BVI government to become the monopoly for as long as they did.

Cable & Wireless achieved, even surpassed, in some cases, what government asked it to do. The goal, under the licensing agreement, was to build a telecommunications infrastructure and give access to the network to others who wanted it. Thirty years later, the BVI enjoyed a line penetration equal to North America, a level that took the U.S. 90 years to achieve.

Elements of the transmission system began to be digitized in 1984. The digital switch DMS 1001 was brought into service in January of 1987. Today, Cable & Wireless supplies service to a total of 19 islands, with Tortola having the most lines using a combination of radio and optical fibre. Virgin Gorda has two exchanges for service delivery, while Beef Island and Camanoe are supplied by cable.

In January 2006, Cable & Wireless received a Letter of Intent from the government of the British Virgin Islands advising of its intent to issue the company a mobile license. The letter did not contain a target date for issuance of a license however.

C&W PLC had expressed its willingness to forego its license in this market and elsewhere, confident it would succeed in a competitive environment and thrive on competition.

There are three monopoly providers in the BVI: Cable & Wireless operates the fixed voice, data network and international services; CCT Global Communications operates the mobile network; and BVI Cable TV Limited, operates the television cable network. The government has stated it expects to initially issue licenses to these operators and possibly one more.

With the advent of a liberalized market, C&W undertook the initiative, with government approval, to rebalance rates. Revenues from international calls had been used to subsidize the provision of local telephone service, and the development and maintenance of the network. This will not continue in a liberalized environment. The rebalancing of rates was an introduction to cost-based pricing. C&W believes that without rebalancing, investors will be attracted only to the lucrative areas, such as international service. However, in a competitive environment, cost-based pricing, or rebalancing, will stimulate inward investment in areas in which the competitors would not otherwise be interested.

On June 2nd, the Telecommunications Act was passed by the Legislative Council, signaling government’s intent to liberalize the industry. Cable & Wireless competes and operates successfully throughout 33 markets globally and welcomes competition in the British Virgin Islands. The BVI is the last of two markets in the Caribbean to be liberalized, the other being Montserrat. We firmly believe that a deregulated/liberalized market, one that provides a level playing field for all operators, including transparent regulation, will benefit the BVI, its citizens and the telecoms market. In fact, the impact to the economy and the telecoms market can only be a positive one, since liberalization will provide customers greater choices, the most innovative technology, and in some instances, lower prices. Cable & Wireless intends to have a state-of-the art network to deliver reliable voice and data services to residents and tourists in the British Virgin Islands, providing the most comprehensive island-wide coverage. Earlier this year, the company began to put the infrastructure in place, with the erection of monopoles at Sage Mountain, Long Swamp, Stevens Estate, Frenchman’s Cay, Zion Hill, Palestina, Luck Hill and Windy Hill, and the outfitting of a service center in Road Town.

In addition, on June 7th, C&W and Nokia announced the deployment of the new GSM network in the BVI. Nokia will supply the Nokia GSM/EDGE base Station Subsystem from its radio portfolio, Nokia MSC Server mobile softswitch from its core network portfolio and Nokia NetAct™ network and service management system from its services portfolio. EDGE will be deployed island-wide.

C&W is eager and energized to work with Nokia and is well-positioned to take full advantage of the fast-growing Caribbean mobile market. With Nokia’s industry-leading equipment, solutions, and services, as well as world-class experience in network deployment efficiency, C&W will have a second-to-none mobile service, which has brand recognition.

C&W has built mobile brand awareness and an affinity with consumers throughout the Caribbean and is expected to continue building on the competitive platform that provides captivating promotional offers and deals for packages, handsets and service.

We believe that the response to our mobile service offerings will rapidly gather momentum and achieve market dominance very quickly. We are confident that our state-of-the-art network, along with the value proposition, will meet and exceed the public’s expectations.Market conditions, regulatory rulings, demand and other factors will largely determine mobile pricing in the BVI. However, C&W is positioned to be the leader in delivering “best value” at competitive prices, while offering a reliable and high call quality and exceptional customer service through its retail outlets. The mobile service in the BVI will have the most advanced scientific mobile solutions to fit all lifestyles. Mobile products and services will be wide-ranging, affordable and supply a superior suite of multimedia services with a wide appeal for all market segments. This would include pre-paid, post paid, and alternate eTopUp methods. Cable & Wireless is constantly reviewing and developing its network architecture. The deployment of technologies such as Wideband Code Division Multiple Access, WCDMA, and High Speed Downlink Packet Access, HSDPA, will be driven by the demands of the market.

This would be one of the most extensive networks C&W has ever built to date. The position of being the challenger is quite exhilarating for Cable & Wireless, providing as it does a tremendous opportunity to effectively market and deliver on brand promises for a successful launch. The most valuable lessons learned from other markets where C&W’s incumbent mobile service was challenged by new competition are: persist in constructing and maintaining a quality, flexible network offering island-wide coverage; have the best value proposition to deliver a full suite of products and services at affordable prices; and of utmost importance, revolutionize the customer experience. Cable & Wireless’ near 140 year legacy is rooted in a single belief that by bringing information communication technology to every citizen of the Caribbean, it is helping to open the door to better education, the key to the future of today’s young people.

Since 1868, the company has woven itself into the fabric of Caribbean society because the Cable & Wireless story is a Caribbean people’s story. The company’s commitments are not only in the development of infrastructure, but in all areas of society. Specifically, it has targeted the areas of health, sports, education, culture, and youth development.

There is hardly an organization, service group or cause in the BVI that has not received a contribution from C&W at some stage. No single company has invested more in supporting programmes that bring education, sports, and music to the citizens of the Caribbean than Cable & Wireless. Cable & Wireless firmly believes that by developing key partnerships, it can provide exclusive opportunities for its customers.

In preparation for competition, our staff has undergone extensive customer service training with focus on the importance of operating in a competitive environment. We are energized. We are ready!

Oyster Publications Inc, PO box 3369, Road Town Tortola, British Virgin Islands, VG1110