Cayman’s communication sector is undergoing rapid disruption, with increased competition, infrastructure buildouts and a regulatory revamp.
For most of its inhabited history, Cayman was a remote outpost, connected loosely to the global economy by infrequent ship-delivered mail. That changed in the 1930s with the installation of the island’s first radio transmission station.
As Cayman transformed into a global financial centre, it steadily developed its communication infrastructure, with subsea cables providing high-speed connections to the internet.
But the jurisdiction’s small size and lack of internal competition meant prices remained high. By 2019, a global study found that internet prices in Cayman were the second-most expensive in the Caribbean and the 13th-highest in the world.
Yet Jeff Hart, the new general manager of Logic Cayman, noted that the cost of internet per quantity consumed has fallen since 2020. “From a consumer perspective, the value for what you’re getting has improved drastically. In the last three to four years, subscriber connectivity has moved from speeds of 20, 40 and 60 megabits per second, to around 250 and 500 megabits or even 1 gigabit.”
Hart’s comments are backed up by a 2024 study from UK telecom researcher, Cable, that found Cayman had the fastest internet speed in the Caribbean and the 29th worldwide, albeit those positions were unchanged from 2019.
Data consumption is increasing around the world as people increasingly live more of their lives online. But the increase is particularly noteworthy in Cayman amid the fast growth of the jurisdiction’s knowledge economy. “The demand for connectivity has increased exponentially,” said Hart. “There are more users, more connected devices and more demand at home and in businesses.”
Logic recently rebranded its business solutions unit as Brava to better serve the growing demand from companies in Cayman. “Brava is growing quickly because businesses in Cayman need data and tech solutions as they figure out how to maximise the benefits of emerging technologies like AI, while staying safe from new threats like cybersecurity,” said Hart, who ran Brava before being made general manager of Logic Cayman.
Need for another subsea cable
One factor in the high prices is the cost of access to Cayman’s two subsea data cables, said Hart. “All the service providers in the market get access to the World Wide Web via two cable systems that connect us to the islands: Maya-1 and CJFS (Cayman–Jamaica Fibre System),” said Hart. “And the owners of those cables set the price.”
Liberty Networks, formerly Cable and Wireless, owns or controls both landing stations for the two subsea cables that provide transport of data into the Cayman Islands. It also owns local telecoms provider, Flow.
Hart’s comments are the latest in a long-running issue, with telecoms regulator, the Utility Regulation and Competition Office, known as OfReg, last year raising the prospect of subsea cable price controls.
Given that the two existing cables are reaching full capacity, one mooted solution is to build a third cable. To that end, parliament is currently debating the Submarine Cable (Telecommunications Resilience) Bill, which would see the government partner with the private sector to build a new cable.
“We welcome the ongoing consideration of an additional subsea cable for the Cayman Islands,” said Hart. This is a vital step in strengthening connectivity and expanding capacity to support businesses, households, education and innovation across the islands, ensuring a resilient digital future for all.”
Busy regulator
The frantic pace of change in Cayman’s communications market is creating plenty of work for OfReg.
On 5 Dec., OfReg launched a consultation on proposals to change Cayman from “voluntary ‘best effort’ guidelines to a modern, enforceable regulatory regime”. The new regime is based on eight pillars, but the basic principle is to create a more consumer-friendly regulatory framework that would have more power to punish telecommunications companies that deliver a poor level of services to consumers.
On 3 Dec., the Compass reported that telecoms firm Digicel asked the Grand Court to compel OfReg to refund about $1.6 million in fees. Flow also served OfReg with a writ for fee repayment in December. This followed a September court ruling that found the regulator had acted illegally when it demanded broadband firm C3 to settle unpaid licence charges.
Hart was unwilling to comment on specific industry disputes with the regulator but noted that he had met with OfReg officials recently. “I think there is an opportunity for a tighter partnership to ensure steady, engaged communication,” he said. “I think there is room for the regulation to mature based on where we are in the industry right now. My commitment to the regulator is to make sure we have a strong partnership going forward.”
Related Videos
