Advertising Feature
After the Telecommunications Act allowed
competition in 2002, the variety of services has
improved in Belize, with positive spillover effects
for tourists whomay need to “roam”.
Competition became the name of the game in
2002 when the government of Belize decided to
liberalize the telecommunications market, a move
whichmade cellular phones and Internetmorewidely
available and cheaper. “We want development,” says
Roberto Young, Chairman of the Public Utilities
Commission (PUC), the body which regulates
electricity, water and telecommunications. “But we
don’twant it tobe costly for the consumer.”
Belize Telecommunications Limited (BTL) was
bringing service through 35,000 fixed lines and
approximately 30,000 cellular lines using an analog
system.A consolidation between the BelizeTelecommunicationsAuthority
(BTA) and the international privateoperatorCableandWireless,BTLhelda
monopoly over telephony.TheTelecommunications Act of 2002 changed
things, allowing the entry of new companies into the sector.“I think in any
industry competition of some description is essential,” says Dean Boyce,
Chairmanof the ExecutiveCommitteeof BTL.“It is very difficult to get the
bestoutof yourbusinessunlessyouhaveanotherorganizationagainstwhich
you can judge your performance.”
After a failed attempt by another operator to enter themarket, Smart!
obtained its license inAugust2003andcompetitioneffectively improved the
market for telecom services. “We saw a reduction in prices when the
monopoly was reversed.Also, one of the most important benefits of the
TelecomAct has been the introduction of new technologies,” saysYoung.
“Before the threat of competition all we talked aboutwas voice telephony.
Now there are internet and digital mobile services.We have been able to
maximizeon technologywithout having to go through a learning curve.”
InDecember 2002, shortly before competition started,BTL installed
a GSM network with GPRS data capability: since then it has seen its
30,000 cellular users grow to110,000.BTLhas also investedheavilyover
the past four years on DSL Internet, managing to increase its usage by
no less than twenty times. “We recognize that telecommunications really
do drive the economy,” says Boyce.
However, reaching remote locations in a country
the size of Massachusetts with relatively low
population density is not a simple matter. “We are
currently expanding the GSM 850 service to as
muchof thecountryasweare reasonablyable,given
the financial constraints and the size of the target
market,” says Boyce. The next step is to install a
completely new overlay wireless service network
across Belize. “The wireless network that uses the
450 frequency will deliver voice and high-speed
internet service to all the small rural communities,
businesses andeco-hotels nomatterwhere they are
located in the country.”
In spite of its status as a private company, BTL
already subsidizes customers whose income falls
below a certain level, and Boyce believes the
companywill be subsidizingusersof thenewwireless
overlay even further. “We’re looking at a very long payback period,” he
says.“But it’s something that Belize as awhole needs.”
Smart! came in with a lot of verve,making sensible agreements with
BTL soasnot toduplicate capital investments in facilities thatwerealready
in place. By offering per second billing, Smart! managed to drop rates by
40 to 50%; they also dropped prices on cellular phones. “We’ve been
working veryhard todemocratize access to telecommunication service in
Belize,” says Eduardo Santiago,CEO of Smart! “Now people have better
access to the services they need.”
Inacountry that finds cellularphonesmoreconvenient than fixed lines,
Smart!managed toentice38,000users in less than four years,a29% share
of the market. “We focus on efforts providing a wide array of wireless
communication solutions,” says Santiago. "And we've just launched
international roaming for tourists who are coming in subscribing to
providers that use CDMA technology.These roamers can now use their
service in Belize.”
Asked if the population of less than 300,000 could do with yet
another operator in the sector, PUC’s RobertoYoung points out: “The
TelecommunicationAct is very pro-competition.We leave it to investors
to decide whether themarket is there, whether they can come in and
compete.”
Telecommunications: A Greater Reach
Taking a rest in SouthWater Caye
