In 2006, the Virgin Islands deregulated its telephone industry. Previously, Cable and Wireless had established a monopoly in the Caribbean countries, both in the telephone and other communication services. However, a local company named CCT Boatphone expanded its services into cellular telecommunications for users in the Virgin Islands. This meant than Cable and Wireless only retained their monopoly on internet services and fixed lines while CCT took over cellular communication services. Currently, there are four telecommunication companies offered licenses to operate in the Virgin Islands; they include, Digicel, CCT, Bmobile, and BVI Cable TV. Bmobile acquired a quick virtual stranglehold on the telecommunication market due to an amalgamation of aggressive advertising and favourable prices (Golding, and Tennant).
Digicel is a Caribbean-based entertainment provider and cellular phone network that operates in over 33markets across Oceania, Central American and the Caribbean. With its headquarters located in Jamaica, Digicel is assimilated in Bermuda and owned by Denis O’Brien, an Irish businessman. Currently, Digicel has broadened its operation into countries such as Haiti, Fiji, Jamaica, Tobago and Trinidad. After its launch in April 2001, Digicel expanded its operation to St. Vincent and St. Lucia in the following year. Later in 2005, the company purchases the Bermuda and Caribbean Cingular Wireless Operations. The year 2006, saw Digicel’s expansion into Haiti and Central America (Golding, and Tennant).
In 2013, after Digicel announced its willingness to invest $9billion in a cell phone network company in Myanmar; a city that had no telecommunications infrastructure. Additionally, the company stated that it had plans to cover 96% of the country with telecommunication network coverage by the end of the year 2015. However, due to unavoidable circumstances, the company lost the bid of Myanmar’s telecommunication license to Ooredoo and Telenor. Digicel’s expansion into the pacific in 2006, aroused various critics from other telecommunication companies operating in the area. The operation of the company in the pacific region was mainly in Papua New Guinea and Samoa (Golding, and Tennant).
On November 2010, Digicel Fiji changed its logo with the last ‘cell’ in the logo getting a blue colour in attempts to represent the backdrop of Fiji’s flag. Earlier in July 2010, the company launched its very first mobile money banking that was deployed in Samoa, Tonga, Nauru, Papua New Guinea and Vanuatu. In Vanuatu, Digicel deployed its strategy of lower costs hence making it ahead of the competition. With the reduced prices, Digicel made it possible for a larger number of the Caribbean population to own mobile phones. For instance, at the launch, a single phone sold at 500vatu while incumbent operators such as Telecom Vanuatu Limited sold at 1000 vatu. Also, Digicel company became the first company to introduce mobile banking services hence creating an ecosystem of money agents that include BSP, ANZ Bank, Bank Vanuatu and Westpac (Condon).
The year 2018 was welcomed by the rebranding of Digicel after a tedious process by the executive management in attempts to develop a new Digicel. The company decided to settle on a new corporate identity and logo. The initial cartoon images on the logo were replaced by white and black talents that were accompanied by red accents. A design team based in Miami was tasked with changing the logo; the change signified the transformation of all assets to improved adaptations based on new guidelines (Golding, and Tennant).
Digicel company has faced various controversies over the years. In attempts to regulate the telecoms market, the Jamaican Telecoms Regulator took their case to court and battled it out with Digicel that was suspected for breaching a contract. The OUR was asked by the then Jamaican minister of industry, technology and commerce to refrain from getting involved and interfering with the pricing policies that surrounded Digicel company. The issue aroused when Digicel was pricing its interconnectivity fee higher than the ideal fee provided by OUR. Therefore, OUR went ahead and instructed Digicel to adjust its pricing accordingly. It was later established that Paulwell, the then Jamaican minister of industry, technology and commerce, had limited power in issuing directives to OUR. However, in 2003 Digicel won the case after taking the case to the Supreme Court (Golding, and Tennant).
Later in 2012, the Tax Administration of Jamaica (TAJ) raided the Digicel offices located in Jamaica in attempts to audit various companies in the telecoms sector. After a public debate, TAJ was forced to seek court services to secure the crucial information on Digicel. Similarly, TAJ denied reports that they had served Digicel with a tax assessment. On the other hand, Digicel made it clear that they had not received any figures of tax owned provided by TAJ. However, TAJ also accused Digicel of making misleading and unfortunate accusations regarding tax administration by TAJ. Also, they indicated that TAJ would not be deterred from its tax auditing services (Golding, and Tennant).
The other telegraph company operating in the Virgin Islands is the LIME that stands for ‘Landline, Internet, Mobile, Entertainment’. LIME is a telecommunication provider that is owned by British Cable and Wireless Communications. It operates it numerous countries that include, Virgin Islands, Anguilla, Barbados, Jamaica, Grenada, Dominica, Cayman Islands and the St. Lucia among others. The company was founded on November 3rd 2008 by the current chairman Ian Campbell. Various businesses operating in the Caribbean that relate to Cable and Wireless technology merged to form LIME. Initially, it was known as Bmobile before it rebranded to LIME. Digicel company is LIME’s largest competitor in the Caribbean countries. Notably, the LIME company is authorised by only Apple as the only carrier for iPhone in the Caribbean countries. Initially, Claro had secured the contract and was licensed to offer carrier services to iPhone user; however, after its exit from the Caribbean market in 2011, LIME took over the contract (Haas).
In 2015, the parent company acquired Columbus Communications and adopted the name FLOW. Gradually, by May 2016, the name LIME was discontinued. LIME company has been very instrumental in the Cable and Wireless technology in the Virgin Islands. LIME provides services such as domestic and international voice telecommunication services; this ensures that individuals residing in the Virgin Islands are able to communicate not only together but also with people on the mainland. The company also provides IP/DATA services such as Frame, ISDN and ADSL and therefore offers internet coverage to those living in the Virgin Islands. Additionally, the company has been vital in the provision of 4G and 3G network coverage to both Apple and Samsung users. LIME company also offers additional services such as television entertainment services and satellite communication services (Haas).
The history of LIME operation in the Caribbean countries can be dated back to the beginning of the Cable and Wireless network in 1880. After Digicel won the court case against the Virgin Islands regulator, it was introduced into the Caribbean telecommunication network. During the period of court intervention, Bmobile took a competitive advantage in the Caribbean market through a combination of aggressive advertisement and lower prices. Additionally, the company gained a competitive advantage because it wisely invested in technology and infrastructure. In 2010, a split occurred in the Cable and Wireless giving rise to the Cable and Wireless Communications and the Cable and Wireless Worldwide. LIME greatly benefitted from this split because it became a subsidiary of the Cable and Wireless Communications (Haas).
Also, LIME gained its competitive advantage from its assimilation with Columbus Communication; this is because its competitor, Digicel, has insufficient line data and voice capability. This limitation on Digicel makes the merger to become a monopoly on telecommunication services in the Virgin Islands. Despite the fact that the amalgamation has been green-lighted by crucial markets such as Jamaica, it still awaits approval from other markets in the Caribbean (Haas).
In 2015, the LIME company announced its rebranding to FLOW; this was the customer brand of Columbus Communications. The main reason for rebranding is attributed to the fact that customers viewed the brand LIME as a lacklustre spotty customer service provider. FLOW was all round and positively received, making it a success in the Caribbean market. An independent study on the reasons for rebranding LIME company indicated that the company was seeking to develop a customer-centred brand that focuses on exposing the new values of the Columbus Communication network. The rebranding also signified the renewed and improved efforts of the company towards providing quality telecommunication services (Haas).
The Virgin Islands-based telecommunication companies have been very instrumental in various vital world events. On January 2007, the annual Karl Merklein Art Show was conducted. The show showcased various artists’ art as well as Giclee prints. The news on the details surrounding the show was aired by Digicel. The show was also aired by television entertainment providers such as LIME hence making it available to all the people across the Caribbean countries. On February 8th, 2007, the Virgin Islands celebrated the annual Sweethearts of the Caribbean in addition to the 25th Annual Classic Yacht Regatta. The two events were visited by people across the globe, seeking to witness and taste the culture of the people living in the Virgin Islands (Haas).
On March 9th to 12th, the Virgin Islands celebrate the Dark and Stormy Regatta that is often hosted by Jolly Roger Inn and Restaurant. The event was aired by various telecommunication companies in the Caribbean countries such as LIME, Digicel and CCT. These telecommunication companies ensured that the attendance was at its peak after spreading information regarding the events across the Caribbean countries (Condon).
Sosthenes Behn was an American businessman born on January 30th, 1884. He was widely known for founding ITT. He founded the Puerto Rico Telephone Company and ITT in 1924. Behn helped in narrowing down communication and helped replace the indigenous forms of communication in the Virgin Islands. Ludwig Roselius was also instrumental in the telecommunication industry in the Virgin Islands because he worked side by side with Behn in the development of ITT in Puerto Rico. Later in 1943, ITT grew to become one of the major stakeholders of the Cable and Wireless Technology in the Virgin Islands (Condon).
Works Cited
Condon, B. “Rabble Rouser (Denis OBrien Of Digicel Group)”. Strategic Direction, vol 25, no. 1, 2008. Emerald, doi:10.1108/sd.2009.05625aad.004.
Golding, Paul, and Vanesa M. Tennant. “Strategy And Technology In Telecoms: Digicel Withdraws IPO”. Journal Of Information Technology Teaching Cases, vol 7, no. 2, 2017, pp. 122-131. SAGE Publications, doi:10.1057/s41266-017-0020-8.
Haas, Ryan. “Time To ‘LIME’ At Cable & Wireless”. SKN Vibes.Com, 2008, Accessed June 12th 2020.