Caribbean EVDO & CDMA Roaming Market: Potential Revenue: 2005 - - PowerPoint PPT Presentation

Caribbean EVDO & CDMA Roaming Market:

Potential Revenue: 2005 – 2010

Prepared for:

Jose F. Otero S ignals Telecom Consulting CDMA Roaming Forum Rio de Janeiro, Brazil – April 18, 2005

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

About Signals

• Founded in August 2004
• Headquarters in Miami
• Regional Offices

– Buenos Aires, Argentina (December 2004) – Brazil (May 2005)

• More than 23 associate consultants
• Partnerships with consultancies in five countries including

– Brazil, Colombia, Mexico, UK and US A

• S

ervices

– Market Intelligence – Competitive Analysis – Business S trategy

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Signals in the Press

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Agenda

• Proj ect S

cope

• The Caribbean Region
• Liberalization Present
• Liberalization Positive Developments
• CDMA Roaming Potential

– Aruba – Bahamas – Cayman Islands

• Conclusions

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

• Caribbean EVDO Revenues
• Caribbean CDMA Roaming Revenues
• Target Operators for CDMA Network Deployment
• Country Profiles

Anguilla Antigua & Barbuda Aruba Bahamas Barbados British Virgin Islands Cayman Islands French Antilles French Guiana Grenada Honduras Netherlands Antilles

• St. Kitts & Nevis

Saint Lucia

• St. Vincent & the Grenadine

Trinidad & Tobago Turks & Caicos

Project Scope

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

The Caribbean Region

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Liberalization Present

• Asymmetric development

throughout the region

– Delayed entrance of competition in the English speaking Caribbean – Young regulatory entities: education is needed!

• Liberalization is j ust beginning…

– Guyana, Trinidad & Tobago, S uriname, Bahamas, etc.

• Liberalized Markets

– Regulation impacting Opex/ Capex

Number portability, E911, etc.

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

OECS Commercial Mobile Operations 1Q05

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Liberalization : Positive Developments

• Rapid increase of the mobile telephony

subscriber base with most markets surpassing 70% penetration levels;

• Benefits to consumers

– Improvement in coverage – Improvement in QoS – Introduction of new services – Introduction of new technologies – Diversity of subscription plans

• Telecom operators’ new paradigm

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Caribbean Total CDMA Revenues by Service

$- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 EVDO Revenues $2,575,262 $5,509,650 $8,755,040 $12,541,699 $16,063,392 $19,512,424 Canada CDMA Roaming $15,925,092 $15,992,046 $16,127,713 $15,891,334 $15,664,289 $15,364,455 US CDMA Roaming $73,328,832 $78,911,508 $82,994,819 $83,979,680 $90,430,416 $90,490,151 2005 2006 2007 2008 2009 2010

CDMA Roaming Revenues

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

• Main target for deployment of CDMA network

for roaming should be incumbent mobile

• perators:

– Most challenged by the arrival of competition at the hands of pan- Caribbean operators such as Cingular Wireless & Digicel – Lack of large quantities of GS M 850 MHz- enabled handsets limits the ability of these networks of capturing roaming revenues

• New entrants to mobile arena

– Could use CDMA roaming as a additional “ captive” revenue to speed-up the

• perator’ s ROI

– Could leverage CDMA network t o provide WLL services – ILECs, IS Ps, CATVs

Target Operators

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Population: 71.218 (July 2004) Area: 193 Km2 Political Status: Dutch Overseas Dept. Language: Dutch & Papiamento Two operators offering mobile services: SETAR GSM (GSM 900/1800/1900 MHz) and Digicel (GSM 900/1800 MHz). Although Cingular Wireless has not mentioned Aruba on its expansion plans for 2005 the island fits into the pan- Caribbean operator regional strategy.

Aruba

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005 Aruba - Tourism by Region of Origin

South Am erica 14% Other Europe 1% Other Regions 1% Caribbean 4% Canada 3% USA 65% Northern Europe 2% Western Europe 10%

Canada & US provide 68% of all incoming visitors; 58% of these visitors stay overnight. 99% of all overnight visitors arrive by air with 4,36% being business travelers. 13% of visitors originate in countries with GSM at 900/1800 MHz. The Netherlands holds the largest share

• f this group as it provides 8,6% of

the total visitors to Aruba. Curacao provides 1,63% of the total visitors to Aruba.

Aruba

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Aruba Total CDMA Revenues

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 EVDO Revenues $86,418 $195,051 $350,836 $557,575 $743,002 $905,621 Canada CDMA Roaming $793,886 $794,425 $798,404 $784,116 $770,331 $753,028 US CDMA Roaming $9,281,850 $9,994,496 $10,516,205 $10,642,751 $11,462,251 $11,471,767 2005 2006 2007 2008 2009 2010

Aruba

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Population: 299.697 (July 2004) Area: 13.940 Km2 Political Status: Commonwealth Nation Language: English

Telecommunications market still is a monopoly in most services. Privatization and liberalization efforts have failed. Mobile incumbent Batelco launched GSM 1900 MHz in February 2004, but coverage needs to improve to reach the same level of service of the

• ld TDMA network

Digicel & Cingular Wireless interested in entering the market

Bahamas

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Baham as - Tourism by Region of Origin

USA 87% Nort hern Europe 3% Sout hern Europe 1% West ern Europe 2% Canada 4% Caribbean 1% Ot her Regions 1% Asia 1%

One of the most attractive roaming markets in the Caribbean with more than 4.5 million annual visitors. 87% of all the travelers visiting the Bahamas arrive from the US and 4% from Canada. Meanwhile, only 6% of visitors originate in countries with GSM at 900/1800 MHz. 69% of all visitors arrive by cruise ships for a 8 – 12 hours stay. Business travelers represent 2,76%

• f all visitors; and 33% of visitors

stay overnight.

Bahamas

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Bahamas Total CDMA Revenues

$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 EVDO Revenues $189,315 $427,295 $768,571 $1,221,470 $1,627,682 $1,983,929 Canada CDMA Roaming $3,103,012 $3,099,299 $3,110,616 $3,053,371 $2,998,051 $2,929,151 US CDMA Roaming $28,297,074 $30,444,472 $32,014,600 $32,392,478 $34,878,340 $34,899,138 2005 2006 2007 2008 2009 2010

Bahamas

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Population: 43.103 (July 2004) Area: 262 Km2 Political Status: UK Overseas Territory Language: English

Considered one of the most important and competitive markets in the Eastern Caribbean Cayman Islands has three mobile operators

• ffering service: Cable & Wireless (GSM

850/1900 MHz), Digicel (GSM 900/1800 MHz) and Cingular Wireless (GSM 850/1900 MHz). 4th mobile licensee TWTC is not expected to launch services in the foreseeable future as the investors are betting to their success in their Guyana operation, Cel*Star.

Cayman Islands

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005 Cayman I slands - Tourism by Region of Origin

Caribbean 7% Canada 5% USA 79% Western Europe 1% Southern Europe 1% Northern Europe 5% Asia 1% Central America 1%

79% of all the travelers visiting the Cayman Islands arrive from the US and 5% from Canada. 85,98% of all Caribbean visitors arrive from Jamaica; 70,38% of all European visitors arrive from the UK. Only 7% of visitors originate in countries with GSM at 900/1800 MHz. Business travelers represent 4,5%

• f all visitors; 86% of all visitors

arrive on cruise ships.

Cayman Islands

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Cayman Total CDMA Revenues

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 EVDO Revenues $39,086 $88,220 $158,680 $252,186 $336,052 $409,603 Canada CDMA Roaming $761,881 $777,749 $779,005 $783,432 $769,610 $756,284 US CDMA Roaming $8,086,416 $8,703,256 $9,154,521 $9,263,505 $9,975,464 $9,982,444 2005 2006 2007 2008 2009 2010

Cayman Islands

IBC’ s Billing S ummit | S an Juan, Puerto Rico 2005

Caribbean mobile operators interested in increasing their revenues will start considering focalized network deployments that will allow them to provide roaming services to visitors subscribed to CDMA mobile services. Key potential Caribbean CDMA roaming markets include Aruba, Bahamas, Cayman Islands and the British Virgin Islands. While intensive data usage is not likely for vacationers, image and location based services are well positioned to stimulate future growth. Due to the expected growth in CDMA market share of US mobile subscribers through 2010, the potential CDMA roaming revenues will grow from 45,2% of all US roaming revenues in the region in 2005 to 51,3% in 2010. Business travelers are small but vital Segment of US CDMA roaming

• revenues. While representing only 4,6% of all travelers, business users

generate 18,7% of all Caribbean basin CDMA roaming revenues

Conclusions

Jose F. Otero President S ignals Telecom Consulting Jose.Otero@ S ignalsConsulting.com Tel: +1 786 866 9729

THANK YOU!