Office of Utilities Regulation

Telecommunications Market Information Report

January – March 2015 - Revised

Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Page 2 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Telecommunications Market Information Report: January – March 2015

Office of Utilities Regulation 3rd Floor, PCJ Resource Centre 36 Trafalgar Road Kingston 10 Jamaica Phone: 876-968-6053-4 / Fax: 876-929-3635 website: www.our.org.jm facebook: facebook.com/officeofutilitiesregulation twitter: theOURja

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The information and statistical material contained in this document were obtained from various sources available to the Office of Utilities

Regulation (OUR) at the time of publication and are intended for information purposes only. The OUR does not give any warranty as to the

accuracy, completeness or reliability of the information and shall not be liable for any loss or damage howsoever caused arising out of any use

or reliance upon any statements made or information contained in this document.

Page 3 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Contents Fixed Market Data ......................................................................................................................................................................................................... 4

Figure 1 Fixed Services Subscriptions ................................................................................................................................................................ 5

Figure 2: Fixed Call Minutes ................................................................................................................................................................................. 6

Figure 3: Fixed Call Revenue Distribution ............................................................................................................................................................ 7

Figure 4: Fixed Services Average Revenue per User (ARPU) ............................................................................................................................... 8

Mobile Market Data ...................................................................................................................................................................................................... 9

Figure 5: Mobile Services Subscriptions ............................................................................................................................................................ 10

Figure 6: Mobile Minutes ................................................................................................................................................................................... 11

Figure 7: Mobile Services Revenue Distribution ............................................................................................................................................... 12

Figure 8: Mobile Services Average Revenue per User (ARPU) .......................................................................................................................... 13

Internet Market Data .................................................................................................................................................................................................. 14

Figure 9: Internet Services Subscriptions ........................................................................................................................................................... 15

Industry Penetration and Concentration ................................................................................................................................................................... 16

Penetration Rate ..................................................................................................................................................................................................... 17

Concentration Ratio (Herfindahl-Hirschman Index) .............................................................................................................................................. 17

Appendix ...................................................................................................................................................................................................................... 18

Page 4 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Fixed Market Data

Page 5 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 1 Fixed Services Subscriptions

0

50

100

150

200

250

300

Q1 2014 Q4 2014 Q1 2015

Sub

scri

pti

on

s '0

00

'

Q1 2014 Q4 2014 Q1 2015

Total Subscriptions 253.95 253.5 257.04

Residential 178.96 180.1 183.72

Business 74.99 73.4 73.32

Fixed Services Subscriptions ('000)

% Change: Q1 ‘15/ Q4 ‘14

Total Subscriptions: 1.40%

Residential: 2.01%

Business: -0.11%

Page 6 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 2: Fixed Call Minutes

- 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00

FIXED TO FIXED

FIXED TO MOBILE

TOTAL INTERNATIONAL

INT'L - OUTGOING

INT'L - INCOMING

Fixed to Fixed Fixed to Mobile Total International Int'l - Outgoing Int'l - Incoming

Q1 2015 120,180.94 133,164.37 72,468.06 17,971.06 54,497.00

Q4 2014 118,922.14 128,632.52 80,511.58 17,458.47 63,053.11

Q1 2014 200,699.13 120,438.75 98,395.70 18,602.70 79,793.00

Fixed Call Minutes ('000)

% change: Q1 ‘15/Q4 ‘14

Fixed to Fixed: 1.06%

Fixed to Mobile: 3.52%

Total International: -9.99%

Int’l - Outgoing: 2.94%

Int’l - Incoming: -13.57%

Page 7 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 3: Fixed Call Revenue Distribution

Q1 2014 Q4 2014 Q1 2015

Fixed to Fixed 141,225.58 149,039.34 146,704.78

Fixed to Mobile 179,950.93 172,167.22 164,152.98

Total International 1,103,731.44 890,862.65 811,983.14

Int'l - Outgoing 121,155.44 118,438.65 119,921.14

Int'l - Incoming 982,576.00 772,424.00 692,062.00

-

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

Re

ven

ue

(J$

'00

0)

Fixed Call Revenue Distribution % change Q1 ‘15/ Q4 ‘14

Fixed to Fixed: -1.57%

Fixed to Mobile: -4.65%

Total International: -8.85%

Int’l - Outgoing: 1.25%

Int’l - Incoming: -10.40%

Page 8 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 4: Fixed Services Average Revenue per User (ARPU)

0 500 1000 1500 2000 2500 3000 3500 4000

FIXED TO FIXED

FIXED TO MOBILE

INT'L - OUTGOING

INT'L - INCOMING

Fixed to Fixed Fixed to Mobile Int'l - Outgoing Int'l - Incoming

Q1 2015 570.75 638.64 466.55 2,692.46

Q4 2014 587.92 679.15 467.21 3,047.00

Q1 2014 556.11 708.6 477.08 3,869.14

Fixed Services ARPU

% Change: Q1 ‘15/ Q4 ‘14

Fixed to Fixed: -2.92%

Fixed to Mobile: -5.96%

Int’l - Outgoing: -0.14%

Int’l - Incoming: -11.64%

Page 9 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Mobile Market Data

Page 10 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 5: Mobile Services Subscriptions

Q1 2014 Q4 2014 Q1 2015

Total Subscriptions 2860.99 3,005.49 2,981.43

Postpaid 160.05 154.4 155.5

Prepaid 2,700.94 2,851.09 2,825.93

0

500

1000

1500

2000

2500

3000

3500

Sub

scri

pti

on

s ('

00

0)

Mobile Services Subscriptions% Change: Q1 ‘15/ Q4 ‘14

Total Subscriptions: -0.80%

Postpaid: 0.71%

Prepaid: -0.88%

Page 11 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 6: Mobile Minutes

-

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

Min

ute

s ('

00

0)

Calls to fixedservices

On-Net Calls Off-Net Calls Int'l CallsInt'l Calls -Outgoing

Int'l Calls -Incoming

SMS and otherMobile data

Traffic

Q1 2014 78,835.65 1,302,116.24 316,447.07 485,657.20 388,606.33 97,050.87 2,451,026.39

Q4 2014 70,900.09 1,213,986.10 393,513.65 673,306.75 530,290.16 143,016.59 2,017,350.91

Q1 2015 71,675.29 1,160,721.41 403,321.18 640,192.79 511,488.87 128,703.92 1,687,968.58

Mobile Minutes% Change: Q1 ‘15/ Q4 ‘14

Calls to fixed services: 1.09%

On-Net Calls: -4.39%

Off-Net Calls: 2.49%

Int’l Calls: -4.92%

Int’l Calls – Outgoing: -3.55%

Int’l Calls – Incoming: -10.01%

SMS & other Mobile Data Traffic:

-16.33%

Page 12 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 7: Mobile Services Revenue Distribution

Q1 2014 Q4 2014 Q1 2015

Calls to fixed services 235,317.45 210,223.89 216,986.09

On-Net Calls 4,291,908.19 5,204,076.25 5,231,446.62

Off-Net Calls 1,023,742.81 1,261,503.45 1,330,832.92

Int'l Calls - Outgoing 840,529.56 576,563.94 900,138.10

Int'l Calls - Incoming 878,665.06 2,187,024.67 1,978,134.93

SMS and other Mobile Data Traffic 893,919.89 849,385.74 764,620.19

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

Re

ven

ue

(J$

'00

0)

Mobile Services Revenue Distribution

% Change: Q1 ‘15/ Q4 ‘14

Calls to Fixed services: 3.22%

On-Net Calls: 0.53%

Off-Net Calls: 5.50%

Int’l Calls – Outgoing: 56.12%

Int’l Calls – Incoming: -9.55%

SMS & other Mobile Data

Traffic: -9.98%

Page 13 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 8: Mobile Services Average Revenue per User (ARPU)

0

200

400

600

800

1000

1200

1400

1600

1800

Q1 2014 Q4 2014 Q1 2015

(J$

'00

0)

Q1 2014 Q4 2014 Q1 2015

Calls to fixed services 82.25 69.95 72.78

On-Net Calls 1,500.15 1,731.52 1,754.68

Off-Net Calls 357.83 419.73 446.37

Int'l Calls - Outgoing 293.79 191.84 301.92

Int'l Calls - Incoming 307.12 727.68 663.49

SMS and other Mobile Data Traffic 312.45 282.61 256.46

Mobile Services ARPU% Change Q1 ‘15/ Q4 ‘14

Calls to fixed service: 4.05%

On-Net Calls: 1.34%

Off-Net Calls: 6.35%

Int’l Calls – Outgoing: 57.38%

Int’l Calls – Incoming: -8.82%

SMS 7 other Mobile Data Traffic:

-9.25%

Page 14 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Internet Market Data

Page 15 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Figure 9: Internet Services Subscriptions

WAP & Mobile Internet and Total Subscriptions data were revised for all quarters

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Q1 2014 Q4 2014 Q1 2015

Sub

scri

pti

on

s ('

00

0)

Q1 2014 Q4 2014 Q1 2015

Total Subscriptions 1,069.45 1,384.61 1,398.44

Broadband (≥ 256k) 144.35 156.04 160.42

Dial-up 0.97 0.97 0.97

WAP & Mobile Internet 924.13 1,227.60 1,237.05

Internet Subscriptions

% Change Q1 ‘15/ Q4 ‘14

Total Subscriptions: 1%

Broadband (≥ 256k): 2.81%

Dial-up: 0%

WAP & Mobile Internet: 0.77%

Page 16 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Industry Penetration and

Concentration

Page 17 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Penetration Rate1 Penetration Rate Q1 2014 Q4 2014 Q1 2015

Fixed Subscription Penetration Rate 9.36% 9.31% 9.44%

Mobile Subscription Penetration Rate 105% 110% 109%

Fixed Broadband Subscription Penetration Rate 5% 6% 6%

Mobile Broadband Subscription Penetration Rate 34% 45% 45%

Total Broadband Subscription Penetration Rate 39% 51% 51%

Concentration Ratio (Herfindahl-Hirschman Index)2

1 Calculated using population year end 2014 data from the Statistical Institute of Jamaica: 2,723,246. Mobile Broadband Subscription Penetration Rate for all quarters was revised Total Broadband Subscription Penetration Rate for all quarters was revised 2 Calculated using subscription data. Mobile Broadband HHI for all quarters was revised

Herfindahl-Hirschman Index (HHI) Q1 2014 Q4 2014 Q1 2015

Fixed HHI 8,347 8,326 8,261

Mobile HHI 6,286 6,053 6,036

Fixed Broadband HHI 5,001 5,000 5,001

Mobile Broadband HHI 8,303 7,648 7,309

Page 18 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Appendix

Page 19 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Fixed Market Q1 2014 Q4 2014 Q1 2015 % Change Q1‘15/Q4’14

% Change Q1‘15/Q1 ‘14

Total Subscriptions (‘000) 253.95 253.5 257.04 1.40 1.20

Fixed to Fixed (‘000 minutes) 200,699.13 118,922.14 120,180.94 1.06 -40.12

Fixed to Mobile Calls (‘000 minutes) 120,438.75 128,632.52 133,164.37 3.52 10.57

Total International Calls (‘000 minutes) 98,395.70 80,511.58 72,468.06 -9.99 -26.35

Outgoing International Calls (‘000 minutes) 18,602.70 17,458.47 17,971.06 2.94 -3.40

Incoming International Calls (‘000 minutes) 79,793.00 63,053.11 54,497.00 -13.57 -31.70

Total Revenue (J$’ million) 2,523.70 2,326.33 2,264.37 -2.66 -10.28

Mobile Market Q1 2014 Q4 2014 Q1 2015 % Change Q1‘15/Q4’14

% Change Q1‘15/Q1 ‘14

Total Subscriptions (‘000) 2,860.99 3,005.49 2,981.43 -0.80 4.21

On-Net Calls (‘000 minutes) 1,302,116.24 1,213,986.10 1,160,721.41 -4.39 -10.86

Off-Net Calls (‘000 minutes) 316,447.07 393,513.65 403,321.18 2.49 27.45

International calls 485,657.20 673,306.75 640,192.79 -4.92 31.82

Outgoing International (‘000 minutes) 388,606.33 530,290.16 511,488.87 -3.55 31.62

Incoming International (‘000 minutes) 97,050.87 143,016.59 128,703.92 -10.01 32.61

SMS and other mobile data traffic 2,451,026.39 2,017,350.91 1,687,968.58 -16.33 -31.13

Total Revenue (J$ ‘ million) 9,146.89 13,391.68 13,849.97 3.42 51.42

Internet Market Q1 2014 Q4 2014 Q1 2015 % Change Q1‘15/Q4’14

% Change Q1‘15/Q1 ‘14

Total Subscriptions (‘000) 1,069.45 1,384.61 1,398.43 1 30.76

Broadband (≥256K) 144.35 156.04 160.42 2.81 11.13

Dial-up 0.97 0.97 0.97 0 0

WAP & Mobile Internet 924.13 1,227.60 1,237.05 0.77 33.86

Total Revenue (J$’ million) 1,839.89 3,616.92 3,573.91 -1.19 94.26

WAP & Mobile Internet and Total Subscriptions data were revised for all quarters

Page 20 of 20 Telecommunications Market Information Report: January – March 2015 Document Number 2015/TEL/012/QSR.002 Office of Utilities Regulation 2015/12/21

Mobile Broadband Subscription Penetration Rate for all quarters was revised Total Broadband Subscription Penetration Rate for all quarters was revised Mobile Broadband HHI for all quarters was revised

Penetration Rate Q1 2014 Q4 2014 Q1 2015

Fixed Subscription Penetration Rate 9.36% 9.31% 9.44%

Mobile Subscription Penetration Rate 105% 110% 109%

Fixed Broadband Subscription Penetration Rate 5% 6% 6%

Mobile Broadband Subscription Penetration Rate 34% 45% 45%

Total Broadband Subscription Penetration Rate 39% 51% 51%

Herfindahl-Hirschman Index (HHI) Q1 2014 Q4 2014 Q1 2015

Fixed HHI 8,347 8,326 8,261

Mobile HHI 6,286 6,053 6,036

Fixed Broadband HHI 5,001 5,000 5,001

Mobile Broadband HHI 8,303 7,648 7,309