The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Cable Bahamas’ top executive says it will likely be “well beyond the half-way point by December” in rolling-out its new fibre-to-the-home network infrastructure across New Providence.

Franklyn Butler, the BISX-listed communications provider’s executive vice-chairman, president and chief executive, told Tribune Business that more than 40,000 homes on the island have already been passed with AlivFibr as the company now moves to focus on service quality and customer responsiveness.

Earlier, writing in Cable Bahamas’ just-released 2023 annual report, Mr Butler wrote: “We continue to be steadfast in our rollout of our fibre-to-the home (FTTH) network having successfully passed and certified over 40,000 homes in our ALIVFibr roll-out on New Providence.

“ALIVFibr services are now available in several communities throughout New Providence, including Adelaide, Coral Harbour, Stapleton Gardens, Golden Gates, Gladstone Road, Lyford Cay and Sandyport. Our continued expansion of FTTH represents a significant leap forward in fibre-optic broadband technology, offering exceptionally high speeds, efficiency and scalability.

“Furthermore, this roll-out of the fastest fibre network in our region, boasting a maximum speed of 10 gigabytes per second for both upload and download, not only demonstrates our capability to deliver superior services but also creates a distinct advantage over our competitors.”

Mr Butler, meanwhile, said Cable Bahamas is targeting a 5 percent improvement in its cost margin over the next three years as it bids to counter multiple operational expenses increases. “A primary focus and ongoing challenge for us has been the annual increases in operational costs across various categories such as electricity, insurance, fuel and more,” he conceded.

“In response to this, we have committed to a thorough re-engineering of our processes. Our aim is to achieve greater streamlining and efficiency, thereby reducing waste and avoidable costs. This strategic approach is not just about cost-cutting; it’s about smart cost management that aligns with our broader business objectives.

“By targeting a 5 percent increase in our cost margin over the next three years, we are setting a clear, measurable goal. This target reflects our dedication to continuously improving our operational efficiency, which is crucial for maintaining a competitive advantage and ensuring sustainable growth,” Mr Butler continued.

“Our efforts in transforming our cost base and boosting productivity are integral to our long-term financial health and our ability to deliver value to our customers and shareholders alike.” Mr Butler acknowledged that adjusted free cash flow for the year to end-June 2023 was slightly lower when set against 2022 comparatives, but added that this was due to the ongoing investment in the FTTH roll-out.

“Our adjusted free cash flow (FCF) for financial year 2023 was $22m, slightly lower compared to $25.8m in financial year 2022,” Mr Butler said. “However, the decline in free cash flows this year is primarily due to our strategic decision to invest heavily in ALIVFibr in New Providence.

“This significant investment, though impacting our short-term, is a vital part of our long-term strategy to enhance our infrastructure and service offerings..... Our fixed network now supports over 135,000 connections, nearly half of which are for our high-speed broadband service, indicating a strong demand for reliable and fast Internet.

“In the realm of fixed residential services, we’ve successfully defended our customer base despite a global shift in consumer preferences, evidenced by a 4 percent decrease in TV connections as more people move towards streaming services. Nevertheless, the average revenue from each fixed business customer has remained stable, showcasing our resilience in a changing market,” the Cable chief added.

“On the mobile front, our customer base has grown by 5 percent, with a 3 percent increase in average revenue per mobile customer compared to last year. This growth not only demonstrates our strong market presence but also our ability to adapt to customer needs. Overall, we now hold a 55 percent share of the consumer market, with 66 percent in fixed services like broadband and 52 percent in mobile services.”

Looking to the future, Cable Bahamas said it was aware of the competitive threat posed Elon Musk’s Starlink satellite Internet services. 

“Our residential Internet service and wireless broadband offering face competition from our main competitor in the Bahamas, being BTC (Bahamas Telecommunications Company) as they continue to roll out their own fibre network, as well as the introduction of the Starlink Satellite services which can have an impact, especially in the Family Islands,” Cable Bahamas added.