The Caribbean region continues to enjoy rapid mobile sector growth

The overall Caribbean mobile market has become one of the most dynamic markets in the world, with subscribers in the region increasing at an average annual growth rate of around 50% per annum between 2003 and 2007. As penetration rates are still relatively low, it is predicted that 2008 will continue to enjoy strong subscriber and revenue growth rates.

One of the star performers in the region in terms of mobile growth has been the region’s poorest country, Haiti. Haitian mobile subscriber numbers increased by nearly fivefold in the three years to early 2008. Growth has been stimulated by the entry of Digicel, which attained approximately 1.5 million subscribers (around 50% of the market) within 18 months of operation.

Carlos Slim’s América Móvil continued its aggressive expansion in the region. It acquired, for instance, Verizon’s interests in the region, thus giving it control of the dominant Puerto Rico Telephone Company and of Verizon Dominicana (to be renamed Codetel) which dominates the Dominican Republic’s fixed line market and holds around 50% of its mobile market.

Cuba’s telecommunications market, which has the lowest mobile and Internet penetration in Latin America, may be on the verge of liberalisation from 2008 following President Castro’s retirement in February and the imminent transfer of power to a more reform-minded successor.