DIGICEL TCI CEO E. JAY SAUNDERS, TELLS LATIN AMERICAN OPERATORS WHY THEY ARE BETTER POSITIONED TO BENEFIT FROM 4G LTE

E. Jay Saunders, CEO of Digicel TCI returned home late last week from the LTE Latin America 2012 Conference, which was held in Rio de Janeiro, Brazil on 17-18 April 2012. At the conference, E. Jay spoke on the topic of “Leveraging the Need for Internet Connection: How are operators preparing their customers to want all the traffic growth that LTE will bring” and he was also part of a CEO Panel discussing the topic “How Will the Operator Business Model Be Transformed with the Introduction of LTE.”

 

During his presentation, E. Jay stated that since Latin American operators are not constrained by the same issues facing USA operators they are better positioned to financially benefit from LTE. E. Jay highlighted this fact with examples of value added services with high customer experience levels that Latin American and Caribbean operators can roll out in conjunction with LTE that will generate new revenue streams and greater ARPU’s – a win win situation for both the operator and the customer. According to E. Jay, when it comes to LTE, business model innovation is going to be critically important due to its large capital requirements, with some USA operators expecting to spend up to US$20 billion dollars to rollout their LTE services.

 

“At LTE Latin America 2012 in Brazil, E. Jay Saunders gave an insightful speech, raising important issues regarding the new technology. Regulators should be more opened to discuss the excellent points raised by Saunders.” stated Marceli Passoni, research analyst at Informa Telecoms & Media, the company that hosted the conference.  Informa estimates that in 2016 LTE will account for 42 million users in Latin America, representing 5% of total subscribers. According to Informa, “LTE is the next mobile change-out which will enable mobile operators to better and more cost-effectively transport the rapidly growing data traffic on their networks. LTE will help Latin American operators to deliver new applications and value-added services, boosting data revenues.”

 

E. Jay, who is scheduled to speak next at the LTE World Summit 2012 being held in Barcelona, Spain at the end of May, stated that “…there are companies that are currently spending hundreds of millions of dollars, and in some cases billions of dollars to rollout LTE, and they are not going to make back their investments with the old voice centric business models. With data traffic growing at a faster rate than voice traffic, operators are now experiencing higher costs to support mobile data than the revenues that they are making from it. This trend is not sustainable, and the only way they can reverse it is by innovating on the business model side.”

 

Some of the other speakers at the 2 day conference were:

Ajay Joseph, CTO, iBasis;

Anderson André, Latin America Service Provider Director, CISCO Systems;

Chris King Sr, Director, Oracle;

Daniel Borras, Director Business Development, Samsung;

Daniel Locklear, Sr. Director Business Development, Alcatel-Lucent;

Emmanuel Coelho Alves, Wireless Product Line Senior Manager, Huawei;

Hanna Maurer Sibley, Product Manager LTE, ERICSSON, Sweden;

Philippe Leon, Worldwide OSS Director, HP;

José Geraldo de Marco, Latin America Technical Marketing, MOTOROLA MOBILITY;

Marcelo Gonçalves, Portfolio Planning Manager Latam, NOKIA MOBILE.

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by RTC Director

TCHTA’s Members and Community Partner for Earth Day to make TCI SHINE!

Members of the Turks and Caicos Hotel and Tourism Association (TCHTA) and the community across Providenciales, came out on Saturday 21 April 2012 to make “TCI SHINE” in commemoration of Earth Day, which is recognized to as a day to raise awareness of issues that affect the earth.

 

TCHTA’s 4^th annual cleanup campaign, “TCI Shines”, attracted the participation of approximately 240 persons, who came out with one objective, to clean up the highways and byways of Providenciales, and to bring an awareness to Earth Day and keeping Mother Earth litter free. The initiative, spearheaded by the Association and its Project Committee, focused on involving the community at large. Some groups where amazed at how much trash was being collected, quotes like; “I will now think twice before tossing anything from my car”, and “I now know the beer of choice in TCI”, due to the amount of bottles collected.

 

Association Executive Stacy Cox noted, “This year’s objective was to involve the wider community through various organizations, like Churches, Schools and Civic Groups, or just to have people clean up around their homes on this day”. The event for us is always bittersweet and we are happy to clean up our communities but disappointed that we are still collecting so many bags of garbage, after hosting “TCI Shines” twice a year for the past three years. We collected approximately 750 bags of garbage in addition to microwaves, golf clubs, drums and shopping carts.

 

Cox added, “For this cleanup we focused on awareness and outreach in the community, as the more people involved in a cleanup campaign the more people will begin to think twice about littering”

 

Special thanks to the members of the TCHTA, BEST Institute, Enid Capron Primary School, Mills Institute, TCI Middle School, TCI Youth Department, Gods Gem, Power 92.5 FM and 102.5 KISS FM, Harvest Bible Church, The Church of God of Prophecy and members of The Filipino Community for doing their part to help TCI Shine.

 

 

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by RTC Director

POLICE NAME DIVING VICTIM

POLICE have today named a teenage American tourist who died following a diving accident off Grand Turk, earlier this month.

Bhavish Zinzuwadia, 17, a passenger on the cruise ship, Carnival Pride, lost consciousness in the water during a Carnival Cruise Lines-sponsored SCUBA diving excursion on April 4.

He was treated at the scene by diving instructors before being rushed to the Cockburn Town Medical Centre.

The victim was then transferred to a hospital in South Florida where he died on April 8.

The incident is currently under investigation.

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by RTC Director

POLICE ENTER THE WORLD OF SOCIAL MEDIA

RTCI Police has unveiled a new tool in the fight against crime.

Officers are turning to social media networks in a bid to catch criminals and engage with local residents.

The police have set up Facebook and Twitter accounts and have appointed a specialist social media officer, PC Kevin Clarke.

PC Clarke, who has just returned from an intensive training course and conference in Canada, said the initiative could save lives.

He explained: “This is a major step forward for the RTCI Police and one we are very excited about. The power of social media is immense, with millions using it every minute of the day.

“Facebook and Twitter not only helps us to communicate instantly with local residents, but it also assists in solving crimes and tracking down criminals.

“It can be used in so many ways and its value in police terms has been proven time and time again.

“Say for instance a young child goes missing. Within minutes we can issue a photograph via social media and instantly we have an army of people on the lookout for that child.

“Social media, coupled with the ongoing support of the Press and the co-operation of the general public, is a huge asset and it can ultimately save people’s lives.”

He added: “Law agencies all over the world are achieving successes with social media tools in areas and we are delighted to be at the forefront of this technology here in the Turks and Caicos Islands.”

Supporting the initiative is communications giant, LIME.

The company has donated two Galaxy tablet computers to the RTCI Police to enable officers to update information to social media sites from crime scenes and other locations.

LIME’s Delleriece Hall said: “Here at LIME we put the community first and we fully support this latest police initiative. Social media is hugely popular and certainly the way forward.

“We endorse anything that improves the quality and safety of people’s lives here in the TCI and we are delighted to assist by donating two tablet computers to the force.”

Meanwhile PC Clarke, who is responsible for implementing the force’s social marketing presence, today urged people to follow the RTCI Police online.

“It’s so easy”, he added. “Facebook users just need to like our page while Twitter users simple have to follow us.

“It’s a great service with traffic updates, crime prevention tips and all sorts of other useful information available.

“But it’s a two-way process and therefore we are absolutely dependent on comments, feedback, information and suggestions from the public.”

You can follow the RTCI Police at www.facebook.com/RTCIPF and on Twitter @royaltcipolice.

ENDS

 

 

 

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by RTC Director

FINANCIAL SERVICES COMMISSION PUBLISHES ACTION PLAN

The Financial Services Commission is pleased to announce that following extensive consultation with the industry and other stakeholders it is today publishing its Action Plan 2012-16 outlining its core areas of activity for the next five years, today, 25 Apr 2012.

 

The Action Plan draws together and addresses the recommendations contained in recent reports from the International Monetary Fund; the Toronto Centre; and the Caribbean Financial Action Task Force, and was given renewed impetus following the closure of TCI Bank in April 2010. These reports, plus earlier work performed in the 2009 Foot Review of the Opportunities and Challenges facing the British Crown Dependencies and Overseas Territories, highlighted areas of the regulatory and supervisory regimes in the TCI that required development, and were used as the basis in drawing up the Action Plan, which will be made available on the FSC’s web site and be periodically updated.

 

His Excellency Governor Ric Todd said: “I congratulate the FSC on this initiative.  The publication of an Action Plan is an important step in demonstrating the commitment of the Financial Services Commission, and by extension the Interim Administration, to the future of financial services in the Turks and Caicos Islands. The Action Plan charts a positive way forward for the sector and describes the steps that will be taken to ensure the TCI keeps pace with the latest international regulatory standards. I am sure the private sector will rise to the challenges ahead and work with the FSC to ensure that TCI’s reputation as a financial services centre is enhanced.”

 

Errol Allen, Chairman of the FSC, added: “The Action Plan is the culmination of a great deal of work by the FSC and its partners in the financial services sector, and represents a summary of our objectives for the next five years. Completion of these objectives will provide the TCI with an extremely robust and practical legislative and regulatory framework designed to support the industry into the future.”

FSC Action Plan: 2012-2016

 

Introduction

The Financial Services Commission (FSC) was established in 2001 as an independent statutory body with responsibility for the administration of the regulatory framework for all financial services in the territory.

As a result of the Caribbean Financial Action Task Force (CFATF) Report in 2008 and the Foot Review in 2009 it was recognised that there was a need for significant institutional strengthening if the FSC was to meet international regulatory standards.

The closure of TCIB in April 2010 resulted in several focused reviews of the FSC; firstly, the Non-Executive Directors Report on the FSC’s supervision of TCIB and secondly, the Toronto Centre Report of the Assessment of Supervisory Methodology and Practices for Banks. In addition the IMF conducted two missions in March 2011 (Exploring Depositor Protection Options) and September 2011 (Establishing a Special Bank Resolution Regime and Deposit Insurance Follow-Up).

The Action Plan that follows is designed to address the recommendations contained in the above reports. The Plan organised by regulatory departments viz Banks and Trusts, Insurance (Domestic and International) and Securities (Mutual Funds and Investment Dealers) under the headings of “the Supervisory Methodology, the Legal Framework and the Professional Resources”. The final section deals with the overall administration of the Commission itself.

 

Banks & Trusts Department

Supervisory Methodology

• Supervisory Manual- The existing manual requires review and updating. Current best practices utilised by the FSC will be documented and areas such as “Problem Bank Resolution and Crisis Management” will be added.

• Regulatory Reporting- The current suite of statistical returns for banks requires revision. For example, there is a need to provide for more detailed reporting on Liquidity, in particular mis-matched positions, to clearly define the instruments that constitute liquid assets as well as to specifically provide for the banks reporting of their compliance or non-compliance with the prevailing regulatory minimum Liquidity Ratios.

• Secondary Source Reporting- There is a need to institutionalise the use by the FSC of the banks’ existing internal information sources. In addition to the annual audited financial statements, the FSC will require the submission of reports by the banks’ Internal Auditors, Compliance Officers etc. to facilitate its own off-site surveillance processes.

• Guidelines- The FSC will complete its framework of guidelines to the industry covering such issues as Licensing, Capital, Liquidity, Loan Classification, Loan Loss Provisioning, Interest Non-Accrual etc.

• Market Information- The FSC will produce a Quarterly Statistical Report containing the consolidated figures for the banking industry, based on the regulatory returns, for website publication.

 

Legal Framework

The present legal framework for banking in the territory is out dated. The FSC proposes to have the following new legislation enacted:

• Financial Services Commission Ordinance

• Banking Ordinance

• Bank Insolvency Ordinance

• Deposit Insurance Ordinance

• Trustees Ordinance

 

Professional Resources

• Recruitment- The FSC expects to seek to expand its existing Banking & Trust team through the recruitment of additional experienced bank and trust regulators.

• Training- The FSC is applying for membership in the two premier regional institutions that provide professional training in supervision and regulation viz ASBA (The Association of Supervisors of Banks of the Americas) and CEMLA ( The Association of Caribbean and Latin American Central Banks) to allow its staff to have access to the most advanced training resources in the region. In addition, the FSC will incorporate the completion of online training programs into the performance evaluation of entry level staff members.

• External Expertise- The FSC will continue to utilize external experts to bolster its regulatory processes, particularly in such areas as the preparation of industry guidelines and the conduct of its on-site examination program.

 

Insurance Department

1. Domestic

Supervisory Methodology

• Supervisory Manual- The FSC does not presently have a manual for supervision of the insurance sector. It is proposed that a manual based on the International Association of Insurance Supervisors (IAIS) core principles will be commissioned to document procedures for both off-site surveillance and on-site examinations.

• Regulatory Reporting- In 2010 the FSC introduced quarterly reporting for domestic insurers however such returns remain rudimentary. It is proposed to utilise the suite of returns developed by CARTAC for the Caribbean Association of Insurance Regulators (CAIR) to improve the comprehensiveness of the data collection effort.

• Secondary Source Reporting- In addition to the submission of the annual audited financial statements, the FSC will institutionalise the submission of reports by Actuaries, Internal Auditors and Compliance Officers etc. in order to enhance its off-site surveillance methodology.

• Guidelines- The FSC will commence the development of a framework of industry guidelines for domestic insurers dealing with such issues as Licensing, Capital, Restricted Deposits, Solvency, Eligible Assets etc.

• Market Information- - The FSC will produce a Quarterly Statistical Report containing the consolidated figures for the domestic insurance industry, based on the regulatory returns, for website publication.

Legal Framework

The present legal framework for domestic insurers proved inadequate when faced with the failure of CLICO and British American in 2009. In addition to developing a network of Memoranda of Understanding with regional insurance regulators it is therefore proposed to enact a new modern domestic insurance ordinance.

 

Professional Resources

• Recruitment- The FSC proposes to expand its regulatory team with the recruitment of additional insurance analysts and senior insurance regulators.

• Training- The FSC will utilise the IAIS online training modules for on-going staff training and the Toronto Centre Leadership Program for more advanced technical education.

• External Expertise- The FSC will continue to utilise external expertise to ensure that the new laws and regulations are IAIS compliant as well as to provide guidance when it commences the introduction of on-site examinations for insurers.

 

2. International

Supervisory Methodology

• Supervisory Manual-There is a need to clearly document the current regulatory practices for Captive insurers and PORCS. In particular there is a need for greater clarity in the definitions for each category of insurer and reinsurer.

• Regulatory Reporting- There is a need to ensure that each insurance manager is providing current information on international insurers for which they are responsible and it is proposed to introduce quarterly reporting for insurance managers.

• Guidelines- The FSC will issue industry guidelines dealing with such issues as the Role of the Insurance Manager, Restricted Deposits etc.

Legal Framework

• The industry has requested amendments to the existing ordinance in connection with the definitions of PORCS.

 

Professional Resources

• Recruitment- The FSC expects to recruit additional insurance administrators.

• Training- The FSC will utilise the online options available (IAIS) as well as the annual educational offerings of the Offshore Group of Insurance Supervisors (OGIS).

 

Securities Department

Supervisory Methodology

• Supervisory Manual- The FSC does not presently have a manual governing the supervision of the securities sector. It is proposed that a manual based on the IOSCO core principles will be commissioned to cover both on and off-site supervision procedures.

Legal Framework

• The FSC will seek amendments to the ordinance to facilitate the licensing of Investment Advisors.

• The FSC will seek amendments to the securities ordinances to bring them in line with IOSCO recommendations.

• The FSC will seek membership in IOSCO.

 

Professional Resources

• Training- The FSC will utilise the annual educational offerings of IOSCO to upgrade the skills of existing staff in the department.

 

The Commission

The Commission has completed Phase 1 of its relocation exercise with the transfer of the Banks & Trusts department and the Finance & Administration department to the Providenciales offices. It has now commenced Phase 2, the relocation of the Insurance department. To date the Domestic Insurance Unit has been transferred while the International Insurance Unit’s transfer is awaiting the acquisition of additional office space in Caribbean Place.

Appendix I: FSC Project Priority List

Project	Priority High/Medium/Low	Estimated Completion Date
Banks: risk-based framework, incl Manual and guidance	H	Dec 2012
Banks: regulatory reports update	H	Dec. 2012
Banks internal & external audit	M	June 2013
Market information – banks & insurers	M	December 2013
FSC Ordinance amendments	M	June 2013
Banking Ordinance - new	M	June 2013
Bank insolvency and resolution	M	Dec. 2013
Deposit Insurance	M	June 2014
Private Trustee regime	M	Dec. 2013
Trustee Licensing Ord - new	L	June 2015
Domestic Insurers – manual and guidance	M	Dec. 2013
Domestic insurers – supervisory reporting	M	June 2013
Insurance Ordinance (domestic)	H	June 2012
International Insurers – manual, guidance and reporting	M	Dec. 2013
International Insurers – new Ordinance	L	Dec. 2015
Investment Business licensing amendments	M	Dec. 2014
Investment Business manual and guidance	M	Dec. 2014
Investment Business – new legislation	L	June 2016

 

 

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by RTC Director