Fixed line Penetration rates (%) 1.2 TELECOMMUNICATIONS AND ICT ADVANCEMENTS The telecommunications infrastructure of a country is a foundational element of its ICT agenda and is a fundamental building block of a national ICT plan. As such, it is instructive to review some key telecommunications indicators for SVG and to assess how this defines the relaunching point for the 2010 – 2015 national ICT plan. SVG is fortunate to have a relatively young population, with some 51% being under the age of 25 years, as it is generally acknowledged that young people have the most potential to embrace and innovate with ICT. So not surprisingly, given the tough economic realities, Government embarked on an aggressive and comprehensive ICT and Private Sector Development Programme to increase the country’s efficiency and competitiveness. Recognising the nexus between ICT and national development, Government sought to develop a comprehensive National ICT Plan for the development and operation of the ICT sector itself, and for using ICT to enable other sectors, including government, over 2010 to 2015. SVG’s telecommunications infrastructure is relatively well developed and has improved substantially over the last decade. Fixed line penetration has been relatively stable, moving from 22.75% in 2004 to a peak of 23.43% in 2008, and settling at 22.24% in 2009. NTRC reports about 22,777 main telephone lines as of July 2008, shared between the two fixed line providers. This represents a total number of landlines to total number of households of about 54.6%. The % of fixed line subscribers over the last five years are shown in Figure 2 above. The 25 21.68 21.61 2005 2006 22.49 23.43 22.24 0 2007 2008 2009 Figure 2: Fixed Line Penetration 2005 – 2009 rate in EC$ for ‘fixed line to fixed line’ during peak hours has stabilised, moving from $0.09 in 2004, to $0.07 during the period 2005 to 2008, and rising to $0.08 in 2009. ‘Fixed line to mobile’ has fallen over the period 2004 to 2009, from $0.81 to $0.70. Mobile penetration has grown tremendously - are now available at prices comparative to markets in the USA. Figure 3 illustrates the rapid growth in mobile penetration rates over the period 2005 to 2009. ‘Mobile to mobile’ calls have stayed relatively constant at $0.85 for the new entrant, rising to $0.86 in 2009. On the other hand, the Mobile Penetration rates (%) 2005-2009 150 125 100 75 112.46 120.6 2008 2009 89.27 59.57 64.94 2005 2006 50 25 0 2007 Figure 3: Mobile Penetration Rate 2005 – 2009 54.7% over the last 5 years, from 65.9% in 2004 to a high of 120.6% in 2009. There are now about 121,114 mobile users in SVG. This growth is due to government’s strategic management of the sector which saw a new entrant entering the market in 2005 and the introduction of prepaid services. More than 90% of current mobile customers use prepaid services. Mobile handsets St. Vincent & the Grenadines National ICT Strategy and Action Plan P a g e | 22 incumbent’s rates fell from $0.99 (2004) to match the new provider in 2006 and 2007, eventually falling to $0.63 (2009). ‘Mobile to fixed line’ moved from $0.88 in 2004 to $0.98 in 2009 for the new entrant. While the rates fell from $0.79 in 2004 to $0.63 for the incumbent. SVG is clearly experiencing the benefits of well-managed competition.