Report: Caribbean needs new broadband investment models as connectivity demands grow

A new report from Danish telecom consultancy Strand Consult argues that while mobile broadband prices across the Caribbean are broadly affordable by international standards, the region faces a growing challenge in financing the next generation of digital infrastructure — creating significant opportunities for institutional investors in telecoms and ICT assets.

The report, Caribbean Broadband Prices: Global Comparisons, Policy Implications & Affordability, analyses 275 prepaid mobile broadband plans across 24 Caribbean markets and concludes that the region does not face a consumer pricing crisis. Instead, the central issue is the sustainability of infrastructure investment needed to support future demand for 4G, 5G and broader digital connectivity.

According to the study, the population-weighted average mobile broadband price in the Caribbean stands at $0.85 per GB based on 30-day prepaid plans, while most countries already meet the UN Broadband Commission benchmark that 5GB of data should cost less than 2% of monthly GNI per capita.

However, Strand Consult warns that affordability for consumers has not translated into a healthy investment environment for operators. Telecom providers across the Caribbean continue to face high costs related to spectrum, energy, international capacity and network maintenance, despite operating in relatively small and fragmented markets.

The consultancy estimates the Caribbean broadband investment gap at between $9 billion and $14 billion, spanning both fixed and mobile infrastructure. The report argues that without new financing models and stronger policy support, the region risks underinvestment in critical digital infrastructure needed to support economic competitiveness and future technologies.

For institutional investors, the findings point to growing opportunities in ICT infrastructure, including fibre networks, mobile towers, data centres, edge computing and 5G deployment. As global demand for digital connectivity accelerates, telecom infrastructure is increasingly being viewed as a long-term, inflation-resistant asset class capable of generating stable returns.

The report also calls for governments to simplify permitting processes, reduce unnecessary regulatory costs and encourage infrastructure-sharing frameworks to help unlock investment.

Strand Consult further argues that large global technology platforms and hyperscale companies should contribute more directly to network financing, given their growing consumption of broadband capacity and digital infrastructure resources.

While retail affordability has largely been achieved, the report concludes that the Caribbean’s next digital challenge is ensuring sufficient capital flows into the infrastructure underpinning the region’s future connectivity ambitions.