Digicel, C&W in historic declaration to cut CARICOM roaming charges

Prime Minister of Grenada, Dr Keith Mitchell (left); Director, Government Affairs of Digicel Group, Kieran Mulvey (centre) and Vice President South Caribbean at Cable and Wireless Communications, Kurleigh Prescod following the signing of the declaration
Prime Minister of Grenada, Dr Keith Mitchell (left); Director, Government Affairs of Digicel Group, Kieran Mulvey (centre) and Vice President South Caribbean at Cable and Wireless Communications, Kurleigh Prescod following the signing of the declaration

Prime Minister of Grenada, Dr Keith Mitchell and two major telecommunications providers today signed a declaration which will soon allow Caribbean nationals travelling within the region to benefit from a significant reduction in roaming charges.

The historic declaration was sealed in St George’s, Grenada and is said to be the first step in a journey of achieving total elimination of roaming charges for Caribbean citizens.  

In the coming days and weeks, service providers Cable and Wirel ess (C&W) and Digicel  – a major provider in Guyana – are scheduled to roll out new rates and charges that will be designed to ensure customers save significantly.

Several years ago, the removal of roaming charges was identified as an urgent step for Caricom Heads of Government. However, progress on the initiative was slow.

During his remarks, Mitchell, the Lead CARICOM Head of Government with responsibility for Science and Technology, said that the signing of The Declaration of St. George’s Towards the Reduction of Intra-CARICOM Roaming Charges signals the beginning of new opportunities for the region.

He said that a negotiating team began discussions with representatives of Digicel and Cable and Wireless in August, 2021 with the objective of identifying effective and feasible measures to totally eliminate roaming charges among the Caricom member states. “The declaration therefore means we have partially achieved our objective and there is still some work to be done as we seek to achieve the optimal position of total elimination of roaming charges,” he said.

According to Mitchell, parties to the declaration have agreed on an implementation timeframe between the second and third quarter of this year given consideration of the technical aspects of the process and the public awareness campaigns that have to take place.

Having recognized the critical role that communications and information technology play in social, cultural and economic development, Mitchell said regional leaders agreed in 2014 to establish a Caricom single ICT (Information and Communications Technology) space. “The single ICT space represents the digital arm of the Caricom Single Market and Economy (CSME). Clearly, we cannot speak of the region’s future prospects without an understanding of how digital technologies are transforming our economies and the region as a whole,” he further stated.

With Caricom working towards the creation of a single ICT space, the removal of roaming charges is seen as vital to reducing inefficiencies, lowering costs and increasing productivity as part of the digital transformative initiative.

Mitchell said that the COVID-19 pandemic continues to strike at the heart of the region’s economic sectors and brought the issue of technology to the forefront.

As a result, he said both the public and private sectors were placed under enormous pressure to accelerate online service delivery as the movement of people was restricted to curb the spread of COVID-19. “Internet access whether through fixed or mobile access proved to be absolutely essential in all walks of life,” he noted.

Mitchell further explained that the roadmap of the Caricom single ICT space was approved at the 28th intersessional meeting of the conference of Heads of Government of Caricom in 2017. “Long before the pandemic. It was envisaged … that the early adoptions by Government would lead to accelerated and widespread use of ICT across all sector,” he said.

But progress has not been as fast as desired, Mitchell said. “All eyes are set firmly on the ultimate goal which is to achieve total elimination of roaming charges throughout the entire Caricom region,” he added.

Mitchell therefore believes that the critical reduction in roaming charges will help drive digital commerce, regional integration and economic development and will have a greater impact when total elimination is achieved. “The current, unpredictable cost of mobile roaming deters Caricom citizens from using their mobile phones as they travel throughout the region,” he said.

“This declaration therefore means that our citizens will have the option to use their mobile phones as they move freely within the single space at reduced cost. Our citizens will be able to travel without a fear of incurring the normal exorbitant charge for voice and data usage as they conduct business and keep in touch with loved ones and their businesses,” Mitchell added.

Caribbean leaders, he said will continue to push for the elimination of roaming charges.

 

New oil

Meanwhile, during her virtual remarks Barbados Prime Minister, Mia Mottley said data and information really have become the new oil which drives a new economy.

“We are resolved that we cannot build a modern Caribbean economy, we cannot forge a single market and economic space, we cannot develop a Pan-Caribbean market in digital services across education, culture, business, trade and finance if there are serious gulfs between our nations,” she said.

Mottley said it is her hope that there will be a conclusion of the framework within the next 12 to 18 months that will allow for the single regulatory space for the two major telecom providers in the region.

She noted that data bridges are “absolutely” critical especially during a global pandemic. “We know that we have to be able to keep connectivity going. Information and digital connectivity must be available, must be cheap, must be fast,” Mottley said.

The goal, she reiterated is to have the complete elimination of roaming charges. “The reality is our citizens would like to roam as if they are home because they are at home in the Caribbean Community,” she said.

According to Mottley, the Heads of Government along with  the telecommunication providers recognize that this is a journey. “From today my friends there really can be no turning back. We accept that the first stage of that journey is the commitment signed here by the telecom providers offering new roaming arrangements where the charges are substantially lower and more importantly capped at reasonable levels that are monthly commitments that most Caricom citizens can easily and equally afford,” she stated.

She further expressed the desire to allow for competition on rates and services to the benefit of the wide variety of users of voice and data services. “We are not prescribing one way in which cost will fall…We want our citizens to feel it where it matters, in their pockets,” Mottley noted.

She also pointed out that she is prepared to take whatever action necessary to ensure that from today citizens can enjoy broader services and lower, more predictable and capped cost. “We must move on to the next step now of creating that single regulatory space and ensuring the cost borne by our citizens for the respect of telecom services relate to the cost incurred by the telecoms providers and not simply to have rates that are way outside of the pockets of our citizens,” Mottley said.

 

Committed

Representatives of Digicel and Cable and Wireless who were present at the event pledged their commitment towards working with stakeholders to deliver greater opportunities to customers.

Vice President, South Caribbean at Cable and Wireless Communications, Kurleigh Prescod said he understands and appreciates the importance of a true Caribbean Single Market with cost effective, reliable connections.

“We at Cable and Wireless are therefore pleased to share that we have taken this first transformational step to provide our valued Caricom customers with significantly reduced roaming packages across the region which deliver simple, consistent and transparent rates and overall reduction in customers charges and will eliminate the shock of receiving exorbitant bills,” he said, while adding, “we must be adaptive and need to work as a region to reduce the cost of doing business for service providers which will redound  to the benefit of our citizens and communities”.

Prescod took the opportunity to call on Government partners to re-examine the level of licence fees and universal service contributions as well as duties and taxes on network equipment and infrastructure to allow providers to pass on further reductions to customers and a relaxation of regulations especially as it relates to the contracting market for landline telephone services across the region.

Meanwhile, Director, Government Affairs of Digicel Group, Kieran Mulvey described the milestone as a new dawn of working together for Caribbean Governments and Telecommunication providers. “I think these are important milestones and today represents a very significant milestone on the roadway towards achieving a single ICT Caribbean space,” he said.

According to Mulvey, it is important not just for the social aspects of the economy and people of the Caribbean but for economic development. “I would like to think it’s a new dawn for us in terms of cooperation, in terms of working together to achieve greater understandings between us and I think the declaration lays out that ambition for us all,” he said.

Since entering the Caribbean, Mulvey said Digicel has invested over US$6 billion. “…We are very conscious of our corporate social responsibilities of ensuring that we are not just simply about profit and gain…Its also about giving back to the citizens of the Caribbean some of the wealth they have generated for our company,” he said.