Nearshore Americas
Caribbean broadband

Rural Caribbean Areas Falling Behind in High Speed Internet

Across the Caribbean, hundreds of towns and villages remain untouched by optical fiber internet. Over a million households have no access to broadband whatsoever, while another half a million have not signed up despite cables running right past their doors.

A large majority of residents have hooked onto cellular networks, yet only 1% of all connections in the region rely on 5G technology, according to Danish telecom consultancy Strand Consult.

The reasons for this digital divide vary by country, but a major hurdle is the sparse population in many areas. Telecom companies fear they won’t recover the significant investments required for rolling out fiber infrastructure. As a result, nearly 30% of the region’s population remains without access to high-speed fiber internet.

However, not all Caribbean nations face the same challenges, says Seattle-based tech company Ookla after conducting speed testing in the region. Trinidad and Tobago tops the region with blazing fixed broadband speeds of 110 Mbps, followed closely by Bermuda at 109 Mbps and the Cayman Islands at 104 Mbps.

In stark contrast, countries like Cuba and Haiti are lagging far behind. In Cuba, a state-run telecom monopoly caps broadband speeds at just 3 Mbps, highlighting the stark inequalities in internet access across the region.

High-speed internet is not a luxury—it is a lifeline for economic opportunity. More than $1.3 billion was invested in the BPO sector between 2006 and 2020 alone, according to Caribbean’s Association of Investment agencies. Even a 10% increase in broadband connectivity can lift GDP by over 3%, says IDB Invest.

The challenge the Caribbean is facing is quite unique. Scattered islands and rugged terrains make expanding network infrastructure a logistical nightmare, observes Michele Marius, Director of ICT Pulse, a Jamaica-based telecom advisory firm.

Michele Marius, Director of ICT Pulse, has been closely following the Caribbean’s telecom sector for years.

“Most of the Caribbean countries have very small population. Jamaica has less than 3 million, and the Dominican Republic and Cuba have more than 10 million. There are some countries where barely 50,000 or 60,000 people reside.” Telcos doubt they will be able to recoup the money they plan to invest.

Many governments also seem uninterested in pouring money into broadband networks. “The governments could invest in ICT infrastructure, but where will they find the money?” questions Marius, pointing to the weak revenue growth in some countries.

For telcos, Caribbean looks unattractive. The average revenue per user is $10 monthly, while a basic fiber-to-the-home (FTTH) connection costs around $50.

Rural regions encounter unique hurdles, especially regarding electricity. In some areas, power cables are entirely absent. Since fiber cables are usually installed along power distribution lines, this poses an additional challenge.

Thunderstorms and hurricanes pose another threat to operators. These storms frequently cause extended power outages, leaving telecom equipment unable to function. Following Hurricane Maria in Puerto Rico, widespread power failures led to complete communication blackouts in many regions

The lack of competition among telecom providers exacerbates the problem, keeping broadband prices unaffordable for many. For instance, in Montserrat, FLOW is the sole telecom carrier. This issue also affects Dominica, Saint Kitts and Nevis, Saint Vincent, and Grenada.

Today, a significant portion of the population relies on cellular internet. In early 2024, GSMA projected that mobile internet connections would account for 91% of all internet connections in the Caribbean by 2025.

Exploring Options

To overcome the challenges, many nations have turned to foreign support. Among these efforts is the Universal Services Fund (USF), which has financed broadband projects in nearly a dozen Caribbean countries, including investments of over $20 million in Jamaica and similar amounts in St. Vincent, the Grenadines, and Trinidad and Tobago.

Another initiative is the European Regional Development Fund’s CaribIX project, aimed at enhancing internet infrastructure in French territories such as Guadeloupe, Saint Barthélemy, and Saint Martin. Similarly, the World Bank has contributed $34.56 million for broadband projects in Grenada, St. Lucia, and St. Vincent and the Grenadines.

Trinidad: Setting an Example

Trinidad and Tobago has pioneered a model for other Caribbean nations to follow in improving internet speeds and expanding network coverage to underserved rural areas.

This transformation began in 2004 with the government’s decision to break the monopoly held by the state-owned telecommunications company, TSTT.

Two years later, Digicel entered the market, challenging the incumbent. A decade later, FLOW joined the competition, further intensifying market dynamics. As urban centers began showing signs of saturation, TSTT turned to rural areas to maintain its viability.

Meanwhile, the twin-island nation identified potential in hotspot boxes. These devices create a wireless local area network (WLAN), enabling multiple devices to connect to the internet simultaneously.

By converting cellular signals—3G, 4G, or 5G—into Wi-Fi signals, these devices eliminate the need for fixed-line infrastructure, granting rural users seamless internet access. In mid 2024, the Trinidadian government distributed personal hotspot devices to approximately 45,000 students in rural areas.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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