New Air Service Launched in BVI

On October 8, it was announced by USVI-based carrier Seaborne Airlines and the British Virgin Islands Tourist Board in collaboration with the BVI Airport Authority about the start of daily round-trip flights between San Juan’s international airport in Puerto Rico and Terrence B. Lettsome International Airport, serving the British Virgin Islands. Flights are to be commenced in two months, on December 8, 2012. It was also stated that by April 2013 Seaborne plans to operate 49 weekly round-trip flights in the BVI.

On December 8, the carrier based in St. Croix, US Virgin Islands, is going to start new service from San Juan to Virgin Gorda. Seaborne will also introduce special promotional fares for BVI residents travelling to San Juan. BVI travellers will have access to Seaborne’s premium lounge at San Juan's Luis Munoz Marin International Airport.

By words of Gary Foss, the president of Seaborne Airlines, this first scheduled service to the British Virgin Islands from their connecting complex in Puerto Rico will allow customers from United States and Canada easy connection to the BVI territory.

Brian Obvi,
Offshore Analyst

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Tenth Anniversary of British Virgin Islands Financial Services Commission

This week, there was the 10th anniversary since the British Virgin Islands Financial Services Commission had been established as an independent regulatory authority for the international financial centre. In December 2001, the Financial Services Commission Act was passed that formally created the Financial Services Commission on 2 January, 2002.

Since that time, the Commission has successfully operated as the body responsible for the regulation, supervision and inspection of all financial services business conducted in and from within the British Virgin Islands. The Registry of Corporate Affairs is a division within the BVI Financial Services Commission that administers the BVI Business Companies Act.

Before the creation of the Financial Services Commission, the financial services industry within the British Virgin Islands was regulated by the BVI government through the Financial Services Department under the Ministry of Finance. All responsibilities previously handled by Government through the Financial Services Department have been taken by the Commission since its establishment.

Brian Obvi,
Offshore Analyst

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BVI Government to Give Regulatory Approval to CFC

The Minister for Communications and Works of the British Virgin Islands and the Telecommunications Regulatory Commission have approved the application of National Rural Utilities Cooperative Finance Corporation (CFC) to acquire BVI Cable TV Ltd.

National Rural Utilities Cooperative Finance Corporation is a cooperative that serves BVI rural utility systems, providing its members with an assured source of market-priced capital and financial products and services. The company has more than $20 billion in assets. Last January, CFC announced that it would make a credit bid to acquire the outstanding stock of BVI Cable and other companies owned by the Innovative Communication Corporation (ICC).

The credit bid is conditioned on approval of regulatory authorities in the jurisdictions where ICC's companies are operating. Prior to receiving the approval of BVI authorities, CFC had already received interim bankruptcy court approval and U.S. antitrust clearance approval. After receiving the remaining approvals, CFC will apply to the bankruptcy court for authorization to proceed with the transfer of control process, acquire and rehabilitate BVI Cable and other ICC-owned companies in the U.S. Virgin Islands and Dutch St. Maarten.

Brian Obvi,
Offshore Analyst

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Brand New BVI Website Launched by Digicel

Digicel, which officially started operations in the British Virgin Islands two weeks ago, now has announced the launch of its brand new website.

On the website, which adopts the new format across all of company's other markets in the region, Digicel will feature a host of information and offer full range of services to its customers and other interested persons. The address of the website is www.digicelbvi.com.

Alan Bates, CEO of Digicel BVI Ltd, noted that the innovative service presented by Digicel to its customers and the BVI public, is easy to use, accessible and quick. He also invited everyone to take a look at the site, explore the Digicel offers and learn more about the company.

Digicel purchased license to the BVI operations a year ago. Having invested over US$17 million in the BVI, the company has promoted strong competition into the telecommunications market in the territory, and was the first to bring the whole range of innovative products and services to the British Virgin Islands.

Brian Obvi,
Offshore Analyst

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Digicel Launches in BVI

Caribbean operator Digicel Ltd. has launched services in the British Virgin Islands (BVI) by investing US $17 mln in the network for the country.

For Digicel, BVI is 25th market in the Caribbean and Central America and 30th market worldwide – with a population of 23,000 and 90% mobile coverage. Now the fastest growing mobile operator in the Caribbean region plans to provide coverage to 98% of the population, by building a brand new state-of-the-art network that includes innovations such as self-service top up machines with 24-hour access and online bill payment.

Colm Delves, CEO of Digicel Group, said that as the third entrant to the market (after CCT Global Communications and Cable & Wireless) they will drive competition by providing “the best coverage, best care and best value for the people of the country”. He also thanked the BVI Government for all of its assistance with their entrance to the market.

CEO of Digicel BVI is Alan Bates who has been with Digicel since 2003, serving as head of sales and distribution for the Dutch Caribbean region and sales director for Digicel Bermuda.

BVI is one of the most prosperous economies in the Caribbean, with rapidly developing tourism and financial services industry.

Brian Obvi,
Offshore Analyst

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BVI Ports Authority to be Managed by the New Team

The BVI Government has approved a seven-member board to manage the British Virgin Islands Ports Authority, Mr. Ronnie Lettsome being the new chairman for a three-year term. Other members of the BVI Ports Authority were appointed to the board with different terms: Mr. Franklin Walters will serve the same three-year term as the chairman, Mr. Gregory Adams and Mr. Maxwell Smith will serve for two years, Mr. Kent Bernier and Ms. Patricia Romney have been appointed for one year.

The Managing Director of the BVI Ports Authority Board, Permanent Secretary in the Ministry of Communications and Works, and the Financial Secretary were appointed ex-officio members of the board. All the appointments took effect on July 23.

The BVI Ports Authority was established in 1990 as a corporate entity, and began its operations in 1991. Its main purpose is to provide and maintain the required harbour and marine infrastructure and facilitate the safe, efficient and effective use of ports in the BVI Territory. Starting from July 2008, the BVI Ports Authority enforced harbor charges for vessels entering and staying in the territorial waters of the BVI.

Brian Obvi,
Offshore Analyst

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BVI Government Lifts the Ban on Cell Towers Construction

Next day after the announcement by Minister of Communications and Works Hon. Julian Fraser that BVI government lifted the stop of cell sites construction in the territory, Digicel BVI Ltd began the process of relocating the first of several cellular site in the BVI in areas of concern identified by the BVI community.

The BVI government placed a stop order on any further construction of mobile towers on 26 June this year, and construction work was frozen for three months as government organized several meetings between all three licensed telecommunications operators - Cable & Wireless, CCT Global Communications and Digicel – to agree on a tower sharing strategy. The Ministry for Communications and Works and the Telecommunications Regulatory Commission from their side participated in the meetings.

The last meeting of the three mobile providers was held on 26 September, at the invitation of Hon. Julian Fraser who facilitated it with the purpose to review mobile operators' strategy and agreement on co-location of towers in the territory. The mobile operators have agreed on sharing approximately 20 cellular tower sites, and some additional locations are currently undergoing technical evaluation concerning their ability to support co-location.

So, following consideration of the progress made by BVI government and the commitment by the operators achieved in the series of meetings and negotiations, on Monday Minister Fraser announced the decision to lift the freeze. The approval of the mobile tower sharing strategy allowed the recommencement of the construction of mobile towers in BVI.

The benefits of the tower sharing strategy and implementing recently developed DRAFT planning guidelines are minimization of the proliferation of cell towers throughout the territory (which was the problem of the community), and providing mobile operators the ability to improve their coverage profiles.

Brian Obvi,
Offshore Analyst

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New Yacht Storage System Introduced in the BVI

The largest full-service marina and boatyard in the British Virgin Islands has introduced a new yacht storage system for hurricane storage that will increase the safety of yachts stored. By this system, Nanny Cay Marina has received the status of an approved hurricane storage facility by one of the world's leading insurer of luxury yachts, Pantaenius.

Nanny Cay is the first boatyard in the Caribbean Windstorm Exclusion Area (CNWEA) with this yacht storage system for hurricane storage. The British Virgin Islands are in the middle of the CNWEA, and from 1 July to 15 November, in the season of hurricanes, yachts generally go south of latitude 12.4N to maintain insurance coverage.

Brian Obvi,
Offshore Analyst

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New Airport Being Developed in the British Virgin Islands

BVI Premier Hon. Ralph T. O'Neal said that the renovated Virgin Gorda airport will have the capacity to accomodate 19 seater planes. The project of the complete purchase and development of the airport started in 2002; now, by words of Premier, the new airport will replace a narrow 1960-era airstrip built by administrators of the high-end Little Dix Bay resort. The facility was sold to the government in the late 1990s.

British-based Halcrow Group Ltd. has signed a contract to upgrade the Virgin Gorda site over the next year. Earlier, the company developed airstrips in Montserrat and St. Vincent and the Grenadines.

Brian Obvi,
Offshore Analyst

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New Harbor Charges Implemented by BVI Ports Authority from July 1

The British Virgin Islands Ports Authority enforces harbor charges effective today (July 1, 2008). Under the new fee structure, vessels entering and remaining in the territorial waters of the BVI will be charged $1 per foot for the first day, $0.75 per foot for the second day and $0.50 per foot for the third day. Vessels using Ports Authority facilities will be levied harbor charges in the amount of $1 per foot of vessel length per day, boats less than 15 feet and those that are home ported in the BVI are exempt from the harbor charges.

By words of Minister of Communications and Works Julian Fraser, for the Ports Authority, as a self-funded organization responsible for the development and maintenance of its infrastructure, it is necessary to collect harbor charges.

In 1991, the Ports Authority awarded a contract to a Canadian firm Sedley & Co. to study the authority's financial situation, and it recommended another fee structure that would ensure the economic viability of the organization. The regulations went into effect in 1997, but have never been enforced until now.

Brian Obvi,
Offshore Analyst

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Digicel Announces the Appointment of New CEO of British Virgin Islands

Digicel, the fastest growing mobile operator in the Caribbean and new entrant to the Central American market, has announced this week the promotion of Alan Bates to the position of Digicel CEO British Virgin Islands (BVI).

Alan Bates is a 10-year telecommunications industry expert and former sales director for Digicel Bermuda and the Dutch Caribbean. Prior to joining Digicel he worked as a consultant and held a number of senior sales and management positions in the Irish telecommunications company ESAT. He has worked with Digicel since 2003 in many posts, being head of sales and distribution for Digicel Aruba and head of sales and distribution for the Dutch Caribbean region. In 2006, he was promoted to sales director for Bermuda subsidiary where he played an instrumental role on the team that led Digicel to the number one position in the market, increased the total number of subscribers by more than 100% since 2006, and made Digicel Bermuda as the number one cellular provider in the market.

Kevin White, Digicel Group COO, has commented on the appointment of Alan Bates in BVI: “As CEO, Alan will leverage his vast experience to ensure Digicel's entry into BVI delivers crystal clear coverage, excellent customer care and innovative services that offer customers the best value for their money”.

After Digicel was granted a GSM license in December 2007, to operate in the British Virgin Islands, the company is set to launch its 24th market before the end of the year 2008. Now the company is looking forward to build a state-of-the-art network, and provide close to 100% population coverage. In December 2007, Digicel recorded six million customers, having invested more than US$2 billion in 23 markets.

Brian Obvi,
Offshore Analyst

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U.S. New Passport Cards Ease Travelling Regime between BVI and USVI

The U.S. State Department this spring will start issuing passport cards for those who cross border frequently, and these new documents will be also accepted by the British Virgin Islands as the neighbor state.

Passport rules have been tightening in the United States since September 11, 2001, and the new passport cards are just part of an overall tendency. The cards that will be of special importance at land borders with Canada and Mexico can also be useful to local boat captains and other residents of U.S. Virgin Islands who often travel to the BVI and do not want to fill in their paper passports with stamps.

The passport cards will be acceptable for entry and exit by sea from the BVI and other Caribbean territories. The U.S. State Department's assistant Consular Affairs spokesman Cyril Ferenchak said that the entry document will be granted to those going by ferry from the U.S. Virgin Islands to the BVI.

The top officials dealing with passports in both territories, including deputy chief immigration officer for BVI Immigration, recently said they were not aware of any arrangements for passport cards for use by sea in the territory. David Edgecombe, special assistant to the U.S. Virgin Islands governor for external affairs, said he expected the passport cards issue to be discussed with BVI officials during the next weeks.

Brian Obvi,
Offshore Analyst

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Positive Effects of Telecoms Liberalization in the British Virgin Islands: Cable & Wireless Lowers its Rates

Cable & Wireless, one of the leading full service telecommunications providers in the Caribbean, announced that it introduces the new Home Plus calling plans and a 25 per cent rate reduction to call mobile numbers from C&W fixed lines in the British Virgin Islands.

Home Plus is a new fixed line calling plan for residential customers, which will be available from 1st February 2008. Home Plus will be added to an existing Home Plan, and will include calls to mobile numbers, in addition to any local Cable & Wireless number, for just $5.00 more per month. Each Home Plus plan has a new one-year contract term.

Home Plus calling and new fixed line rates offer also other benefits and great savings, including:

• Bundled free minutes for all calls made to any local mobile number in the British Virgin Islands;
• 75% decrease in fixed line call rates to mobile calls outside of the bundled free minutes;
• Customers can get unlimited calls to any local Cable & Wireless number, including mobile numbers, for only $5 more each month for the Home Unlimited plan;
• Wider calling area that includes calls to mobile phone, NetSpeak, and more than 10,000 fixed lines, with no connection fee or migration fee to add Home Plus calling.

Brian Obvi,
Offshore Analyst

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Digicel gets mobile license in BVI

On December 17, Digicel announced that it has been granted a license to operate in the British Virgin Islands. Soon, the fastest growing mobile operator in the Caribbean and new entrant to Central America will be able to operate a GSM network in the BVI.

The liberalization process that preceded the license was initiated by the BVI Government in the beginning of 2005. With the licence, Digicell becomes the 3rd entrant into the BVI mobile market, so, it should create good competition and move mobile telecommunications development further – and bring enormous benefits including competitive pricing, better choice and technology innovation to mobile customers in the British Virgin Islands.

The BVI is to become the company's 24th market. It should be reminded that entering a number of Caribbean markets was not an easy task for Digicel. Previouslly, Digicel had filed legal action against the BVI Telecommunications Regulatory Commission, and won it, and then it filed an application against the rival operator Cable & Wireless that, as Digicel claimed, used illegal practices to delay the entry of Digicel into a number of Caribbean markets.

Digicel is planning to spend USD 15 million as its initial investment. This is needed to build a network that would offer close to 100% population coverage. The company will directly have 20 employees in BVI as well as create hundreds of indirect jobs.

Digicel’s goal announced by Colm Delves, Digicel Group CEO, is becoming the number one operator in the BVI.

Brian Obvi,
Offshore Analyst

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BVI Moves Towards Achieving Category 1 Registration Status

The British Virgin Islands will probably change its vessel registration status from Category 2 to Category 1 within the Red Ensign Group. At the current moment, British Virgin Islands have the status of tax neutral Category 2 Red Ensign port of British Registry operating under the authority of the Merchant Shipping Act, 2001. At the Red Ensign Group (REG) Conference that was held in Guernsey in summer it was announced that the Secretary of State for Transport has agreed to upgrade the British Virgin Islands Shipping Register (VISR) to Category 1 status limited to general cargo ships.

In 2006, the BVI government launched the VI (Virgin Islands) Shipping Registry, which was created out of a merger of the Shipping Registry Division of the BVI Financial Services Commission, with the Marine Services Unit of the Ministry of Communication and Works. Forming of the Registry, which falls administratively under the authority of the Chief Minister's office, means that one of the final conditions required for BVI to operate as Category 1 Shipping Registry is fulfilled.

A change of registration status would lift the current tonnage restrictions on vessels that may be registered under the BVI flag, and provide the new possibilities to the jurisdiction in the merchant shipping arena benefiting.

The BVI government is planning to find the resources needed to create the infrastructure required for the change in status during the period of 2003-2007. Probably, the new status will be formally received before the end of 2007, and then BVI will join the ranks of Bermuda, the Cayman Islands, Gibraltar, the Isle of Man and the United Kingdom.

Brian Obvi,
Offshore Analyst

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Cable & Wireless Provides Broadband Upgrade in the Region

The leading full-service telecommunications provider in the Caribbean Cable & Wireless Ltd., which was recently involved in the legal dispute with Digicel in the British Virgin Islands, announced in the beginning of September the providing of major speed and value upgrades to its broadband customers in the Caribbean region. Chris Hetherington, Chief Executive Officer of Cable & Wireless Americas & Caribbean, informed that this launch is the result of a US$140 million investment in Cable & Wireless' Next Generation Network for the Americas & Caribbean region. The purpose of this three-year investment were physical and operational infrastructure improvements.

Cable & Wireless offers various plans for each specific group of customers, so people can choose the plan based on their needs. In addition to this launch of upgraded broadband services, this August launch signifies a shift to the name Cable & Wireless Broadband for all Broadband services across the region. According to Mr. George Lewis, VP Networks, the shift from XNet in some countries in the region to Cable & Wireless Broadband will take place over the next few months. In the British Virgin Islands, Cable & Wireless has always carried the Cable & Wireless Broadband branding.

Mr. Vance Lewis, Chief Executive of Cable & Wireless, has commented, “Now the starting level, minimum standard for Cable & Wireless Broadband customers in the BVI and across the Caribbean, is speed of up to 1 MEG – for the same low prices they paid before.”

Brian Obvi,
Offshore Analyst

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Legal Dispute between Telecom Operators: Digicel against C&W

After Digicel filed legal action against the BVI Telecommunications Regulatory Commission, and won it, the company has filed an application against Cable & Wireless. The company declares that the rival operator used illegal practices to delay the entry of Digicel into a number of Caribbean markets, and seeks for multi-million-pound compensation for lost revenue, profits and market share.

The lawsuit was filed last week in a British high court, the countries involved are St Lucia, Saint Vincent and the Grenadines, Grenada, Barbados, the Cayman Islands, Trinidad and Tobago, the Turks and Caicos Islands. According to Digicel, when it began expanding its operations in the markets of these countries from 2002 to 2006, C&W resisted interconnection between different mobile and fixed land providers.

Brian Obvi,
Offshore Analyst

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BVI Shipping Registry to be Upgraded to Category 1 Red Ensign Group

The British Virgin Islands will be able to welcome megayachts to its shores for the first time since the country has started the launch of its tourism industry sector. At the Red Ensign Group (REG) Conference held in Guernsey it was announced that the Secretary of State for Transport has agreed to upgrade the British Virgin Islands Shipping Register (VISR) to Category One status limited to general cargo ships.

The decision was preceded by consultations between the Maritime & Coastguard Agency (MCA), the Foreign & Commonwealth Office (FCO), VISR and with the BVI Governor and his staff. The BVI has recently completed a 3 year programme to meet REG Category 1 standards.

The monitoring visit to the BVI was carried out by the MCA in October 2006, and the VISR was found to have met the technical requirements to become a REG Category One Register limited to general cargo ships including large commercial yachts.

The VISR upgrade to Category 1 status will be implemented by an order made under Section 18 of the Merchant Shipping Act 1995.

Red Ensign Group (REG), in addition to the United Kingdom, includes shipping registries of Anguilla, Bermuda, tne BVI, the Cayman Islands, the Falkland Islands, Gibraltar, Guernsey, St. Helena, the Isle of Man, Montserrat and Turks and Caicos Islands.

Annually, the REG meets in a member country to exchange views on policies and technical issues involving regulation, marine safety, etc. The decision to upgrade the BVI was made after consultation with the UK's Maritime and Coastguard Agency, the Foreign and Commonwealth Office, VISR and other BVI government officials.

The BVI Shipping Registry was officially launched in September 2006, and operated as a Category Two Red Ensign British Registry, which can register ships of up to 150 gross tons, and pleasure vessels of up to 400 gross tons.

Concerning the current upgrade, BVI Chief Minister Orlando Smith said, “This announcement is of great significance, as it will position the BVI to attract large cargo vessels of unlimited tonnage and megayachts of up to 3,000 gross tons."

Smith also said that the upgrade will create opportunities for new sources of government revenue from ship registration fees as well as positive prospects in a number of areas for private businesses. He also said that once the legal process is finalized, the decision will be approved formally by the Privy Council.

Brian Obvi,
Offshore Analyst

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Digicel vs BVI Telecommunications Regulatory Commission

Legal action that was taken by Digicel against telecommunications regulators of the British Virgin Islands, has been settled 2 weeks ago in favour of the license holder. Digicel's application for a mobile telecommunications license was rejected in February 2007 by the BVI Telecommunications Regulatory Commission, and on April 30 the company filed the application against the TRC in the BVI High Court; the company also once again expressed its interest in entering the BVI market.

Digicel's victory against the BVI government in the BVI High Court means that the Regulatory Commission has to consider the same application of this telecoms operator for providing telecommunications services on the territory.

Digicel claimed that its application to operate a GSM license in the British Virgin Islands had not been addressed in accordance with the Act, which stipulates that each application must be considered on an objective, transparent and non-discriminatory basis. On May 18 it was ruled by the Court that Digicel's application for a Judicial Review into the issuing of licences by the BVI Telecommunications Regulatory Commission succeeds on the reason that the TRC had acted unreasonably.

In the end of April, BVI government gave final approvement of Telecommunications Liberalization Policy, having invited the three currently licensed public suppliers to apply for licenses to operate across fixed line, mobile and cable sectors. By this other applicants were excluded from the process, among them were Digicel and Virgin Live Media.

In the opinion of the BVI government, it was not constitutionally or legally obliged to open the market immediately to full competition. The government also stated that Digicel had no unfettered right to apply for a license.

Justice of the High Court Rita Olivette argued that the Act provides no barriers to applicants wishing to receive license other than meeting the criteria defined by the legislation. Olivette also issued an order requiring the TRC to consider and determine Digicel's application filed on February, and ruled that the TRC must pick up Digicel's costs.

Brian Obvi,
Offshore Analyst

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Results of a Survey on the Public Opinion about Telecoms Liberalization in the BVI

JML Communications Ltd. commissioned a survey to get people's individual opinion about the process of telecommunications liberalization taking place in the British Virgin Islands. The survey was conducted by Research and Planning - a reputable research firm based in El Salvador. From May 2-10, 2007 they have interviewed a total of 350 persons, using the BVI Telephone Directory.

As a result of the survey, an estimated 77% of BVI residents surveyed think that the government should provide licenses to more than three companies currently having them, to operate in the new liberalized telecommunications market. 76.8% of customers interviewed by Research and Planning said they would prefer that government allows more than the three existing companies to receive a license,while 12.9% said they would prefer government allows only the three existing companies to receive a license; 10.3% didn’t know or had no opinion. Certain number of people also responded that they want to see the companies working with telecommunications to be local, because the money generated this way would stay in the islands.
Respondents also want the following mobile telecoms operators to enter the BVI market - Cingular (4.23), Digicel Group (4.14); bMobile (3.64); Cable & Wireless (2.86); and CCT Global Communications – (2.42).

Other things indicated by the survey are that:

• Telecommunication liberalization is estimated positively by most respondents;
• Liberalization should bring better rates, reliable services and technical support, bigger diversity of services and reliable companies;
• By the opinion of many respondents, the government has delayed resolving of the matter because they are protecting the existing companies from other competitors;
• A large amount of people did not have any knowledge of any company applying for a license, but most of them mentioned Digicel, which had been refused a license by government. Most respondents also mentioned that they would like to see Digicel in the BVI market, because it provides good and reliable services and would lower prices;
• The government should not grant more licenses than the market can handle, but also should not restrict the number of companies applying for a license.

Brian Obvi,
Offshore Analyst

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