Caribbean Regional Communications Infrastructure Program (“CARCIP”) Feasibility Study for Broadband Connectivity in the Caribbean Region Focusing in particular on Grenada, St. Lucia and St. Vincent Technical, Economic and Financial Feasibility Assessment August 2012 FINAL Prepared By: WiArt Net4 Group, LLC CONFIDENTIAL AND PROPRIATARY INFORMATION 1 Table of Contents Table of Figures ..................................................................................................................................... 4 1. Executive Summary ............................................................................................................ 6 2. Introduction ...................................................................................................................... 10 3. Regulatory Review ............................................................................................................ 13 3.1. Regional and National Regulation ............................................................................................... 13 3.2. Market Entrance ......................................................................................................................... 14 3.3. License Types and Procedures .................................................................................................... 14 3.4. Right-of-Ways.............................................................................................................................. 15 3.5. Interconnection ........................................................................................................................... 15 3.6. Shared Infrastructure .................................................................................................................. 15 3.7. Wholesale ................................................................................................................................... 16 3.8. Private Networks ......................................................................................................................... 18 3.9. Conclusions ................................................................................................................................. 23 4. Intra - Country and regional assessment ........................................................................... 28 4.1. Grenada ....................................................................................................................................... 28 4.1.1. Sector Performance ............................................................................................................ 28 4.1.2. Domestic Fixed Voice Service.............................................................................................. 29 4.1.3. Domestic Mobile Market .................................................................................................... 29 4.1.4. Broadband Internet Services .............................................................................................. 30 4.1.5. Service Providers - Fixed ..................................................................................................... 31 4.1.6. Service Providers – Mobile.................................................................................................. 34 4.1.7. Service Providers – Independents....................................................................................... 34 4.1.8. Telecommunications Licenses............................................................................................. 34 4.1.9. Broadband Adoption ........................................................................................................... 37 4.1.10. Technology Assessment ...................................................................................................... 41 4.1.11. Gap Analysis ........................................................................................................................ 43 4.1.12. Grenada to Carriacou and Petit Martinique – Submarine Fiber Optic System ................... 43 4.2. Saint Lucia ................................................................................................................................... 46 4.2.1. Sector Performance ............................................................................................................ 46 4.2.2. Domestic Fixed Voice Service.............................................................................................. 47 4.2.3. Domestic Mobile Market .................................................................................................... 48 4.2.4. International Voice Service ................................................................................................. 49 4.2.5. Internet Broadband Services .............................................................................................. 49 4.2.6. Service Providers - Fixed ..................................................................................................... 50 4.2.7. Service Providers – Mobile.................................................................................................. 52 4.2.8. Telecommunications Licenses............................................................................................. 53 4.2.9. Broadband Adoption ........................................................................................................... 54 4.2.10. Technology Assessment ...................................................................................................... 57 4.3. St. Vincent and the Grenadines .................................................................................................. 61 2 4.3.1. Sector performance ............................................................................................................ 61 4.3.2. Domestic Fixed Voice Service.............................................................................................. 61 4.3.3. Domestic Mobile Service..................................................................................................... 62 4.3.4. International Voice Service ................................................................................................. 62 4.3.5. Broadband Internet Services .............................................................................................. 62 4.3.6. Service Providers - Fixed ..................................................................................................... 63 4.3.7. Telecommunications Licenses............................................................................................. 66 4.3.8. Broadband Adoption ........................................................................................................... 66 4.4. Technology Assessment .............................................................................................................. 67 4.4.1. Gap Analysis ........................................................................................................................ 71 4.4.2. St. Vincent – Cross Country Road........................................................................................ 76 5. Inter-Country Assessment ................................................................................................. 77 5.1.1. Global Caribbean Network .................................................................................................. 78 5.1.2. Antilles Crossing .................................................................................................................. 80 5.1.3. Eastern Caribbean Fiber System ......................................................................................... 81 5.2. Gap Analysis ................................................................................................................................ 82 5.2.1. Government Network (“GovNet”) ...................................................................................... 82 5.2.2. IXP and Regional Data Bank ................................................................................................ 90 5.3. Review of Demand Side Policies ................................................................................................. 95 5.3.1. Grenada ............................................................................................................................... 95 5.3.2. Saint Lucia ........................................................................................................................... 97 5.3.3. St. Vincent and the Grenadines .......................................................................................... 98 5.4. Broadband Affordability.............................................................................................................. 99 5.4.1. Wholesale Access ................................................................... Error! Bookmark not defined. 5.4.2. International Connectivity ..................................................... Error! Bookmark not defined. 5.4.3. Cost of Electricity ................................................................... Error! Bookmark not defined. 5.4.4. Regional IXP and Data Bank Strategy ..................................... Error! Bookmark not defined. 6. Peak Demand and Projections ......................................................................................... 101 6.1. Methodologies .........................................................................................................................