The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Fixed broadband Internet subscribers enjoyed their highest-ever year-over-year increase in 2023 to coincide with the market entrance of Elon Musk's Starlink service, it was revealed yesterday.

The Utilities Regulation and Competition Authority (URCA), unveiling data on the health of the Bahamian communications market, revealed that fixed broadband Internet customer numbers increased by more than 9,000last year compared to 2022.

"The Bahamas Telecommunications Company (BTC) and Cable Bahamas remain the primary fixed broadband service providers. However, 2023 saw the entry of satellite internet service provider, Starlink, into the market," URCA noted.

"Cable Bahamas has significant market power in the provision of retail fixed broadband in New Providence, Grand Bahama, Abaco,and Eleuthera, while BTC has significant market power in all remaining islands where only BTC offers broadband services.

"Overall, fixed broadband subscribers increased by 13.22 percent, from 84,022 subscribers in 2022 to 95,123 subscribers in 2023, representing the highest number of fixed broadband subscribers and the largest year-over-year increase since URCA has been tracking the information. The fixed broadband penetration rate increased to 23.68 subscriptions for every 100 persons."

URCA did not attribute this increase directly to Starlink, whose wireless satellite service has proven especially popular in the Family Islands and remote communities where Cable Bahamas and BTC's infrastructure does not extend to. A market disruptor, it is drawing plenty of competitive attention from the two Bahamian incumbents.

And fixed broadband Internet was not the only communications market segment to enjoy an increase. "The use of landlines (fixed voice services) has seen an increase contrary to the global trend of declining use," URCA said.

"The Bahamas recorded an 11.85 percent increase in fixed voice subscribers in 2023, the most significant rise since URCA began monitoring these metrics. This increase suggests a return to pre-COVID usage patterns, underscoring the enduring value of landlines in certain segments of the population. The penetration rate for fixed voice services has also risen from 21.75 to 24.08 subscriptions per 100 inhabitants."

As for mobile services, URCA added: "These numbers show the sector has witnessed a slight contraction in the number of mobile phone subscribers, decreasing from 403,993 in 2022 to 399,630 in 2023, a 1.08 percent reduction year-over-year.

"The number of mobile phone subscribers has remained steady since 2020 with minor fluctuations of less than 2 percent annually. The mobile subscriber penetration rate experienced a marginal decline from 101.61 to 99.47 mobile voice subscriptions per 100 persons between 2022 and 2023." Mobile data-only subscriber numbers remained flat at 33,232 in 2023 compared to 33,327 the year before.

"Retail mobile data services represent a niche segment that caters to users who exclusively subscribe to mobile broadband, utilising devices such as laptops, tablets or USB dongles with 3G/4G connectivity, rather than smart phones," URCA added. "This market remained relatively stable, suggesting a consistent demand for these services.

"The pay TV sector, led by Cable Bahamas with BTC also proving competitive, has experienced its first subscriber increase since 2017, growing by 4.9 percent" to 56,553 total subscribers as opposed to 53,909 in 2022.