BTC is the sole provider of mobile services to the Bahamian market. This legal monopoly expired on 6^th April 2014.^[1] Mobile penetration is estimated at 84.17% (2013) which represents a total subscriber base of just over 302,500 subscribers. As shown in Figure 1, this penetration rate is comparable with the average penetration rate for developing markets.

Although, growth in the Bahamian mobile market has remained relatively flat and decreased marginally by 0.09% in 2013, average revenue per user (ARPU) increased by 24.75%. Real change has come in the type of handset technology that has been adopted by mobile customers. BTC recently indicated that in 2011 roughly 30,000 customers were using smartphones compared to 200,000 users in 2013.^[2]

Roughly 84.82% of BTC’s mobile customer base obtains services on a prepaid basis.^[3] The proportion of customers within the market who are prepaid customers continues to dominate client share within this market and has also varied markedly in recent years (Figure 2.).

Figure 3 shows that there has been a marked uptake in mobile data services by customers since 2010. Although the number of subscribers decreased by 12.35% in 2013 from 2012, the number of subscribers (more than 96,000) remains more than five-fold the figure for 2011 (See Figure 3). Uptake and usage of mobile data is expected to remain strong particularly given the recent (February, 2014) launch of a LTE network that is capable of providing data services at much faster speeds than previously utilised networks.

Post-paid mobile packages for personal use are offered at prices that range from $10 per month to $139.99 per month for varying amount of in plan voice minutes, text and data. Prepaid voice rates are $0.33 per minute during peak hours (i.e., 7 am-6:59 pm); $0.15 per minute off peak (i.e. 7 pm – 6:59 am) and $0.20 per minute on weekends. Prepaid data packages can be purchased for prices that range from $3 and $30 per month. Prepaid credit is debited at $0.05 for local texts and $0.15 for international texts.^[4] The following retail pricing structure applies with respect to BTC’s mobile network:

• Mobile-to-mobile calls – Calling Party Pays (CPP);
• Mobile-to-fixed calls – Calling Party Pays; and
• Fixed-to-mobile calls – Mobile Party Pays (MPP). This principle applies even if the call originates on a fixed network owned by another operator (e.g., CBL).