LNO250304LNC&W052GRGM-C1

21 June 2005St. Kitts & Nevis

Preparing for the CSMEvis-à-vis new and Emergent Technologies, Competition, Regulations

Colin C James Chief Executive, Cable & Wireless Dominica

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Caricom Single Market and Economy

What does the Final Product Provides?

• A mechanism within CARICOM countries to respond and to take advantage of globalization

•A fully developed and implemented legal framework

•A stronger collective governance framework  

•The full enjoyment of national treatment by citizens and nationals of all Member States in respect of

•Production and trade in goods

•The provision of services

•The free movement/transfer of skill and capital

•Growth and expansion of intra - regional trade

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CSME – C&W a role Model

C&W has been here for over 100 years

•A pan Caribbean operator in 13 territories

•The development of Caribbean nationals & the transfer of talent

•First Caribbean Female CE in Region: Patricia Walters in SKN

•Caribbean Nationals make up 99% of Senior Management.

•Ubiguitous Service offering; common look & feel to products

•Centralised Service Platform for economies of scale

•Strong Presence of Community Stewardship & Sponsorship

•Improved standards of employment = improved standards of living

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C&W & the CSME

Technology

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Leading edge vs. Bleeding edge

•Building Infrastructure is capital intensive

•Relies heavily on external financing, necessary for upgrade and maintenance

•Must balance POTS and PANS

•Population 69,000

•Size – In Square Miles-289

•GDP per capita in USD$1,987•Age profile

–0 – 19: 26,781–20 – 34: 14,799–35 – 54: 15,555–55 – 65+: 11,500

•Unemployment – Percentage-15.7%

Customers Buy Applications not Technology

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Platforms that empower people & business

•Seamless & Virtual business operation across the region (E.g. ECCB Video Conference Facility)•Multimedia

•Remote access and management, across islands

•Borderless virtual communities

•On-line payments; self provisioning

•Development of local content & Active Internet community

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C&W & the CSME

Competition

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How is Cable & Wireless Preparing?

•Focus on our strengths:

•Leverage of Scale and Full Service Provider status

•The convergence of technologies

•Mobile & Broadband is the way of the future

•Stay on message with Strong Brand, and product sub-brands

•Efficiency in Product definition & rollout

•Single development & multiple execution

•Strategic partnerships; Opportunities for consolidation

•Increasing our footprint by taking advantage of opportunities

•Customer Service; Good internal = Good external

Competition

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•Personal Internet Communicator

•Affordable entry to Internet

•Robust, easy to use for newbies

•Max2, Coming soon!

•***Literacy Program***

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C&W and CSME

Regulatory

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Promoting a Fair Regulatory Regime

•Principle of cost oriented rates for wholesale, price caps etc.

•DOM SKN,GDA,SLU,SVD: Eastern Caribbean Regulatory Authority ECTEL

•Local NTRC

•JAM: Office of Utilities Regulations OUR

•CAY: Information Communications &Technology Authority ICT

•BGI: Fair Trading Commission FTC

•AXA: Public Utilities Commission PUC

•Analogous regulations in each jurisdiction ensures a high level of fairness and uniformity

•Uniform treatment balanced by individual sovereignty

Multiple Regulatory Regimes

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•Common IDD rates to some destinations:

•Between ECTEL States EC $0.50 per min

•Between ECTEL States and another EC $0.66 per min CWWI operating company

•Between ECTEL State and another EC $0.99 per min country within the Caribbean

•Price cap plan in each country:

•Residential line rentals across ECTEL differ by no more than 25%

•Business line rentals differ by no more than 18%

•Fixed to fixed calling rates differ by no more than 35%

•Fixed to mobile calling rates differ by no more than 35%

Regulation (ECTEL)

ECTEL's approach was clearly motivated by CSME type concerns.

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Regulation: Summary

• Support for the Regulatory process: Fully resourced legal & regulatory team

• Better resourced regulators are more process conscious

• Uniformity does reduces the cost of Regulations

• Harmonization of policies and products to improve the customer experience

• Ensure balance of Regulations with scale and individual sovereignty

• Flexibility must be maintained to deal with local circumstances

• Leverage on our Scale & experience to remain competitive.

How is Cable & Wireless preparing?

C&W & the CSME

The benefits as we see it

• An excellent Telecommunications Network is needed for reliable exchange of information

• Optimal allocation of our Resources

• Increased Revenue services through production integration

• Access to entire CARICOM Market in first instance and to market opportunities abroad

• Enhanced competitiveness

• Increased opportunities for Cable & Wireless’ employees in the new CSME environment

• Net positive impact on the profitability of our Companies– Removal of barriers = growth

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“We must all hang together or assuredly we shall all hang

separately.”

 Benjamin Franklin

Caricom Single Market and Economy

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C&W & the CSME

“A local reality”

DVD presentation