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Telecommunications Policy in the Caribbean: a Case Study of Telecommunications in Jamaica and Cuba

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Telecommunications Policy in the Caribbean: a Case Study of Telecommunications in Jamaica and Cuba View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Calhoun, Institutional Archive of the Naval Postgraduate School Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2013-03 TELECOMMUNICATIONS POLICY IN THE CARIBBEAN: A CASE STUDY OF TELECOMMUNICATIONS IN JAMAICA AND CUBA Yee, Robert A. Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/32923 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA THESIS TELECOMMUNICATIONS POLICY IN THE CARIBBEAN: A CASE STUDY OF TELECOMMUNICATIONS IN JAMAICA AND CUBA by Robert A. Yee March 2013 Thesis Advisor: Bert Lundy Second Reader: Gurminder Singh Approved for public release; distribution is unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704– 0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202–4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704–0188) Washington DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED March 2013 Master’s Thesis 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS TELECOMMUNICATIONS POLICY IN THE CARIBBEAN: A CASE STUDY OF TELECOMMUNICATIONS IN JAMAICA AND CUBA 6. AUTHOR(S) Robert A. Yee 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943–5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. IRB Protocol number ____N/A____. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution is unlimited A 13. ABSTRACT (maximum 200 words) Government influence and direction over a country’s telecommunication infrastructure is determined by policies and regulations designed to provide oversight of how a telecom company should conduct business within the country. While these policies and regulations can range from extremely liberal to authoritarian, a nation’s ideology will dictate how governments interact with telecommunications providers and, ultimately, the telecommunications company’s ability to become a viable entity for economic growth. Vast opportunities within the Latin American and Caribbean region exist for telecommunication investors willing to tackle these complex government ideologies. This thesis explores the Caribbean countries of Jamaica and Cuba, where telecommunication has developed in different ways, based on government involvement in the telecom market, and the policies and regulations designed to foster competition, or lack thereof. A detailed analysis into political, business and foreign influence shows that Jamaica and Cuba can benefit directly from private investors willing to venture into these countries. A comparison reveals that policy enforcement affects the balance in relationship between government oversight, telecommunications business investors, consumers, and the economy. Recommendations are provided for policy and regulatory enforcement/updates to better support privatization and liberalization of the telecommunications infrastructure of Cuba and Jamaica. 14. SUBJECT TERMS Telecommunications, Jamaica, Cuba, Policy, 15. NUMBER OF Regulation, Infrastructure, Cellular, Landline, Internet, Cable, PAGES Digicel, Claro, FLOW, LIME, ETECSA 141 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540–01–280–5500 Standard Form 298 (Rev. 2–89) Prescribed by ANSI Std. 239–18 i THIS PAGE INTENTIONALLY LEFT BLANK i i Approved for public release; distribution is unlimited TELECOMMUNICATIONS POLICY IN THE CARIBBEAN: A CASE STUDY OF TELECOMMUNICATIONS IN JAMAICA AND CUBA Robert A. Yee Lieutenant Commander, United States Navy B.S., Chapman University, 1994 Submitted in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN COMPUTER SCIENCE from the NAVAL POSTGRADUATE SCHOOL March 2013 Author: Robert A. Yee Approved by: Bert Lundy Thesis Advisor Gurminder Singh Second Reader Peter Denning Chair, Department of Computer Science iii THIS PAGE INTENTIONALLY LEFT BLANK i v ABSTRACT Government influence and direction over a country’s telecommunication infrastructure is determined by policies and regulations designed to provide oversight of how a telecom company should conduct business within the country. While these policies and regulations can range from extremely liberal to authoritarian, a nation’s ideology will dictate how governments interact with telecommunications providers and, ultimately, the telecommunications company’s ability to become a viable entity for economic growth. Vast opportunities within the Latin American and Caribbean region exist for telecommunication investors willing to tackle these complex government ideologies. This thesis explores the Caribbean countries of Jamaica and Cuba, where telecommunication has developed in different ways, based on government involvement in the telecom market, and the policies and regulations designed to foster competition, or lack thereof. A detailed analysis into political, business and foreign influence shows that Jamaica and Cuba can benefit directly from private investors willing to venture into these countries. A comparison reveals that policy enforcement affects the balance in relationship between government oversight, telecommunications business investors, consumers, and the economy. Recommendations are provided for policy and regulatory enforcement/updates to better support privatization and liberalization of the telecommunications infrastructure of Cuba and Jamaica. v THIS PAGE INTENTIONALLY LEFT BLANK v i TABLE OF CONTENTS I. INTRODUCTION ............................................1 A. DESCRIPTION AND BACKGROUND .........................1 B. REASON FOR THIS THESIS .............................5 C. SCOPE ..............................................6 D. ORGANIZATION AND METHODOLOGY .......................6 II. JAMAICA .................................................9 A. INTRODUCTION AND EARLY HISTORY .....................9 B. BACKGROUND AND FACTS ..............................18 C. TELECOMMUNICATIONS INFRASTRUCTURE AND DEVELOPMENT .25 D. POLITICAL AND SOCIAL CLIMATE TELECOMMUNICATIONS IMPACT ............................................30 E. GOVERNMENT AND TELECOMMUNICATIONS RELATIONSHIP ....33 1. FLOW .........................................41 2. Digicel ......................................41 3. LIME .........................................43 4. Claro ........................................44 F. CHAPTER SUMMARY ...................................46 III. CUBA ...................................................49 A. INTRODUCTION AND EARLY HISTORY ....................49 B. BACKGROUND AND FACTS ..............................62 C. TELECOMMUNICATIONS INFRASTRUCTURE AND DEVELOPMENT .71 D. POLITICAL AND SOCIAL CLIMATE TELECOMMUNICATIONS IMPACT ............................................79 E. GOVERNMENT AND TELECOMMUNICATIONS RELATIONSHIP ....83 F. CHAPTER SUMMARY ...................................88 IV. TELECOMMUNICATIONS REGULATORY POLICY EFFECTS ...........91 A. MARKET INFLUENCE ON TELECOMMUNICATIONS ............92 1. Jamaica ......................................92 2. Cuba .........................................93 B. POLICY BARRIERS ...................................94 1. Jamaica ......................................94 2. Cuba .........................................95 C. STRENGTHS AND WEAKNESSES OF JAMAICA AND CUBA .....100 1. Strength, Weakness, Opportunity, and Threats (SWOT) Analysis .............................100 a. Jamaica ................................100 b. Cuba ...................................101 2. Regional Growth and Influence ...............102 3. Investors ...................................103 4. Liberalization vs. State Owned ..............104 a. Jamaica ................................104 vii b. Cuba ...................................105 D. RECOMMENDATIONS ..................................106 1. Jamaica .....................................106 2. Cuba ........................................107 V. CONCLUSIONS ...........................................109 A. COUNTRY COMPARISON ...............................109 1. Ideology ....................................110 2. Regulation Effects: Progress/Stagnation .....112 3. Growth ......................................113 B. FUTURE RESEARCH ..................................114 LIST OF REFERENCES .........................................117 INITIAL DISTRIBUTION LIST ..................................123 viii LIST OF FIGURES Figure 1. Jamaica (From Mapquest, 2006). ...................9 Figure 2. Jamaican Coat of Arms ...........................10 Figure
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