Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers
@guardian.co.tt
Reporting from Punta Cana, Dominican Republic
The Caribbean faces a widening digital infrastructure and investment gap that could undermine its ability to compete in artificial intelligence (AI), fintech, digital government and other emerging sectors, CANTO C9 Chair Lisa Agard has warned.
Speaking to the Guardian Media yesterday following the Caribbean Association of National Telecommunications Organisations’ (CANTO) 41st Annual Conference and Trade Exhibition in Punta Cana, Dominican Republic, Agard said the region must treat digital infrastructure as critical economic infrastructure and find new ways to fund network expansion.
She pointed to data showing that about 49 per cent of people across the Caribbean remain offline, despite only about 10 per cent of the population being outside the geographic coverage of mobile networks.
“This tells you that people are offline for another reason, because why would you be in the footprint of a network and not connect?” Agard asked.
The challenge, she explained, extends beyond the price of telecommunications services. The affordability of devices, digital skills, and consumers’ ability to use smart devices effectively are also contributing to the region’s usage gap.
For Trinidad and Tobago, the affordability of connectivity itself appears less significant than in many other Caribbean territories. Agard noted that broadband spending in T&T is about 1.07 per cent of gross national income per capita, well below the international benchmark of two per cent.
The data therefore raises questions about whether the cost of smartphones and other devices, rather than the cost of mobile services, is preventing more people from coming online.
Agard also highlighted the region’s lag in 5G deployment. Current 5G adoption in the Caribbean is estimated at 10 per cent, with adoption projected to reach only 35 per cent by 2030, compared with 57 per cent globally and 50 per cent in Latin America.
Bridging that gap will require significant investment. The estimated investment needed to close the region’s 5G gap is about US$1 billion. If the Caribbean is to achieve the goal of a gigabit society by 2030, including widespread 5G and fibre-to-the-home connectivity, the investment requirement could rise to between US$9 billion and US$12 billion.
T&T, however, is positioned relatively well on broadband affordability, Agard noted, suggesting that the country’s focus should increasingly be on infrastructure investment, digital inclusion and ensuring that citizens have access to capable devices and the skills needed to participate in the digital economy.
The pressure on networks is also growing rapidly.
Agard cited estimates that data usage in the region has increased by about 500 per cent over the past four years. Average monthly data consumption per subscriber, currently around 3.3 gigabytes, is expected to rise to about 15 gigabytes by 2030
.Agard said CANTO believes the answer requires greater cooperation across the digital ecosystem, including telecommunications operators, governments and hyperscalers.
She pointed to Europe’s approach, where policymakers have encouraged ecosystem participants to collaborate on network challenges through commercial negotiations, with mediation available where necessary.
For the Caribbean, Agard believes a similar collaborative approach could help address the region’s connectivity, coverage and investment challenges.
CANTO has already begun raising the issue at the regional political level. Through its membership in the Caricom Private Sector Organisation, the association has brought the importance of continued investment in digital networks to the attention of Caricom.
Agard said there is now recognition among Caribbean policymakers that digital infrastructure and economic development are closely connected.
The next step, she noted, is to take the discussion directly to the hyperscalers and begin building the partnerships needed to support future network investment.
“Digital infrastructure is no longer a narrow telecommunications issue. It is really foundational economic infrastructure,” Agard maintained.
She described ICT infrastructure as the circulatory system of the digital economy, with data as its lifeblood and networks as its arteries.
