The Tribune

By NEIL HARTNELL

Tribune Business Editor

THE Bahamas Telecommunications Company (BTC) will likely have invested between $65-$70 million in its Next Generation Network (NGN) for fixed-line broadband by the time it is completed, its chief executive telling Tribune Business that increased penetration in this area was already spurring the creation of "a whole new class of entrepreneurs".

Geoff Houston, in a wide-ranging interview with this newspaper, said the newly-privatised carrier was initiating "a lot of investment in the Bahamas right now to drive broadband penetration" from both a fixed and mobile perspective.

He revealed that BTC was set to introduce Android phones priced at under $100 within the next few weeks, as the carrier moved to match customer products with its upgrade 4G network.

And Bahamian consumers already appear to be on board with the trend towards mobile data products, BTC data detailing that for the year-to-date, the carrier has sold some 17,500 smart phone device.

On pre-paid data, BTC has seen some 64,000 data activations, with 220,000 Blackberry activations, while on the post-paid data side it has seen 2,500 data activations and 15,000 Blackberry activations.

"We're about to open up a whole new world of opportunity on fixed broadband, as the network is moved to an NGN network," Mr Houston told Tribune Business. "

"By the time we get through with it, based on what BTC invested before it was acquired by Cable & Wireless Communications, and what has been invested since, the total investment will probably be $65-$70 million."

He added: "I think it's vital the Bahamas improves its broadband penetration just in terms of the economic benefits it can drive. Today, with the SMS platform, we've seen a whole new class of entrepreneurs coming through, wanting to provide data and information services to Bahamian customers.

"That serves to illustrate the kind of economic benefits the Bahamas gets from new business types appearing."

Other benefits from increased fixed and mobile broadband penetration, Mr Houston added, would be the ability for Bahamian-owned, Family Island-based hotels to "market more aggressively online". Long distance learning would also be facilitated.

"It's a handy stimulus to the economy. The small business sector, hopefully, will be a huge recipient from the benefits of broadband," Mr Houston said. Apart from locating and marketing to customers, these Bahamian companies could use the network to find new overseas suppliers, driving down costs, or open up new distribution networks.

"There are a lot of investments being made in the Bahamas right now to drive broadband penetration," Mr Houston told Tribune Business. "Part of the challenge is to make all these investment and keep things running as smoothly as possible.s

"We are introducing some very affordable new Android devices in the next couple of weeks, and have already introduced iphones and smart phones, which have gone down very well.

"I do believe you're going to see the first sub-$100 Android phone coming out in the next few weeks. Right across the Bahamas, we'll make it available, as the 4G network is here, and consumers will get better access and better experiences."

The BTC chief executive told Tribune Business: "We're seeing pretty good demand coming through for the new Android phones, and seeing data package take-up. That's exceeded our expectations.

"We've not gone too aggressively at the moment, as we have to get the platform in place."

Mr Houston added that a key BTC objective was to ensure consumers had the right technology in terms of mobile devices, and the carrier was looking at putting "more and more offers out there for people to exchange and trade up".

This, he explained, was intended to eliminate the older technology still in the hands of many Bahamian consumers, "make the network experience better and drive more broadband usage".

Adding that "a small army" was working on the 4G network upgrade, Mr Houston added: "The biggest challenge we have is managing expectations while going through these many changes.

"It's been very challenging the last few weeks, but we're very confident based on the work in the last week that we've got through the bulk of the changes and it will settle down in the next few weeks."

The upgrade, he added, had not been easy "especially in a business not used to change".