Newly-appointed chief executive officer of Digicel T&T, John Delves, has called for a leveling of the playing field between his company and its main rival Telecommunications Services of T&T (TSTT). It has been six weeks now since Delves took control of the Digicel's local business, but he argued while Digicel has now emerged as the country's number one mobile provider, it has taken longer to become number one because the playing field has not been level. Asked why it had taken Digicel six years to have the largest market share in the mobile sector as opposed to how the company was able to quickly dominate the markets of the eastern Caribbean and Jamaica, Delves said: "A key difference here is that we obviously don't really compete in the government sector. "The fact that our competitor is 51 per cent owned by the Government means there is a whole section of the market that we are effectively blocked out from. So while the market has been liberalised, there hasn't been true liberalisation in that the playing field isn't exactly flat. The odds are still tilted slightly against us. What obviously we would like is a fully level playing field." He argued that Digicel can offer the Government much better service at more competitive rates than TSTT and feels that should be what both the Government and business should want in tough economic conditions.
The new Digicel CEO said the company was well over its market share in terms of prepaid customers and private companies. He said: "We think by offering customers the best network, the best coverage, the best customer care, we can continue to grow." In a wide ranging interview at his office on Monday, Delves said Digicel was unafraid of competition and should the Government seek to bring in another player in the local market, it will be prepared to compete as long as the rules of competition are fair. "What Digicel prides itself in is bringing competition to the Caribbean. When Digicel first came 11 years ago, we broke monopolies right across the region. So if further competition comes into the market place, we will embrace it. I always feel competition is good, whether it is two players of three, and we'll be happy to compete against anyone," Delves told the Business Guardian. A key strategy to competing, said Delves, is the introduction of the latest technology and handsets affordable to the average consumer. It is in this context he boasted of Digicel's ability to beat TSTT to the market with widespread 4G coverage. He explained there were a lot of Smartphone owners who were unable to make the maximum use of their phone because of the limited data capacity of the network, but promised change.
He said loyal Digicel customers now have a network that can really make a smart phone be used the way it was designed. He talked about people's frustration at not having the full range of access to Smartphones' capabilities. "I think the penetration is unlikely to increase. But the point is, will people switch from one device to another and I think they will because now you can get so much more out of your Smartphone. There will be greater integration of the smartphone with people's lives," Delves said. He pointed to an explosion in apps with 2.25 billion apps per month being downloaded, which will bring the phone to life, and the third element missing is the network. He said: "We are obviously proud that we are the first network to bring true 4G network to your phone." Delves said while Smartphones have the features of laptops and will lead to an increase in Internet penetration in T&T, the real threat to the laptops and PC will come from tablets. "I definitely think the tablet is the direct threat to the laptop. I think a lot of people now are quite happy to have their tablet provide that everyday use. Smartphones are getting smarter and they are, in a real sense, small laptops from what you can get on a Smartphone today. So I think, yes, it will increase Internet penetration."
He said the key to increase Internet penetration will be ensuring handsets are affordable. In a clear jab at his competitor, TSTT, Delves said this has not historically been the case. "Digicel T&T has launched Smartphones from as low as $499, so again there is no point in having the network, no point in having the applications if you can't provide affordable high quality handsets." He added: "Our strategy when we came into the Caribbean 11 years ago was to make sure that communication wasn't only for the elite, wasn't only for the rich, that communications should be accessible for everyone. We want to do the exact thing in providing broadband access for your mobile. So we will be subsidising the Smartphone devices. We have increased the penetration of Smartphone handsets." While admitting the market is saturated, Delves said Digicel's future growth will come from people switching over and making Digicel their primary handset for voice and data. He explained that the 4G investment ran into a few hundred million dollars, including subsidising handsets to ensure people had access. Asked if it was not really a business decision to flood the market with handsets so that when TSTT comes with its 4G, people would have already been locked into Digicel's plans, Delves said the company only wants to make Smartphones accessible.
About John Delves
A graduate from the University of Ulster with first-class honours in international marketing, Delves is the father of three, with a fourth expected soon. He said his family will be moving to T&T when his wife delivers their fourth child. At age 35, the young CEO said the Digicel T&T team is the strongest he has come across in the Caribbean. He wants to build on that inherited success. He has two other plans: invest in new technology through 4G, and focus on the customer, not the competitor. Asked about the future of its Blackberry phones in the context of the challenges being faced by its makers Research in Motion, Delves said whatever happens Blackberry will be around in on e-shape or fashion and has been very successful phone regionally and beyond.
