The Bahamas Telecommunications Company (BTC) is forecasting a 40 percent "uplift" in data traffic this year after registering an 81 percent explosion in smartphone usage for 2012. After pouring tens of millions into its network, the country's sole mobile network operator is continuing to reap the rewards from eager consumers. While in December 2011 smartphones comprised just 10 percent of total devices sold, last Christmas that figure jumped to nearly 50 percent, according to Marlon Johnson, senior vice-president of marketing and communications at BTC.
"The truth of the matter is customers are shifting over to smart handsets and doing more with them. It will continue to be healthy," he said. Johnson, speaking to Guardian Business following his presentation the Grand Bahama Business Outlook, said BlackBerry has gone from making up 90 percent of all smartphone sales to just 55 percent. The executive said this statistic is a key indicator that Bahamians are developing a more diverse appetite. In particular, consumers are becoming increasingly hungry for Android devices.
Johnson revealed that the Samsung Galaxy S4, launched in New York City yesterday, will arrive on shelves here in The Bahamas in May. The much anticipated BlackBerry Z10 is going to launch here in mid-April. BTC is targeting both a high-end smartphone market and an even more expansive entry-level line of devices. The result is far more data usage and ultimately higher revenue for BTC. In 2012, mobile data traffic grew more than 50 percent, Johnson said. Average smartphone usage expanded a whopping 81 percent. And data usage in Android phones is now higher than iPhones.
"These phones can of course do more things. But customers certainly are buying these devices due to the data services," he told Guardian Business. In tandem with data and smartphone penetration is the growth of BTC's actual network capabilities. According to its presentation yesterday, $42.8 million has been invested in its new mobile network, which includes 4G data and 2G voice. It also highlighted the Next Generation Network (NGN), which represented a $62 million investment to replace the 20-year-old radio system and 50-year-old underground cables.
BTC's Long Term Evolution (LTE) system has begun technical trials in New Providence, Johnson explained. Full service on New Providence and Grand Bahama is expected by the end of 2013 "That promises to add more substantial reliability for mobile data," the BTC executive said. "It will be revolutionary for commercial opportunities, such as mobile video conferencing." Other initiatives from BTC include the introduction of its 24-hour call center, the launch of online and social media help centers and the construction of 11 flagship retail stores on five islands in The Bahamas within 13 months.
While the company has been slow to enlist franchisees, it insisted that 40 of them will be open in the next 18 months. BTC is 51-percent owned by Cable and Wireless Communications, listed on the London Stock Exchange. The company is expanding its presence and gearing up for mobile phone competition as early as 2014.
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