BMI View: Our expectation for major changes in the Caribbean has already begun to play out, with thenews that CWC will need to sell its 49% stake in operator Telecommunications Services of Trinidad andTobago (TSTT). This means the market is looking at a significant shake-up, one of many that will take placein the region. The CWC acquisition of Columbus International will have a far-reaching regional impact inthe broadband internet and pay-TV markets, which remain underdeveloped and ripe for growth and isalready affecting regulatory environments in other markets. In response to the acquisition we expectacquisition activity from rival Digicel in the broadband and pay-TV market, as it looks to match CWC'sscale. Digicel already agreed to the buyout of Bermuda Telephone Company and more can be expected inthe coming year. We expect interest in the region to really take off in 2015, with plenty of opportunities forinterested players to enter these markets.
Cayman Islands has the highest mobile penetration at over 160%, while Cuba's penetration rate remainedbelow 20%.
ETECSA plans to activate 800,000 new mobile lines in 2015, according to ETECSA CommunicationsDirector Luis Manuel Diaz. The operator reportedly activated 565,000 new mobile lines in 2014.ETECSA also expects to activate 30,000 landlines in 2015, up 42% from 2014. Diaz revealed that thereduction in international mobile tariffs, initially valid until December 30 2014, will be extended untilJune 30 2015.