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 Friday, July 13, 2007

Antigua may have only a small population of 70,000 people, but it is certainly facing some big issues.  According to an article yesterday in the Antigua Sun newspaper, the use of Voice over Internet Protocol (VoIP) has increased exponentially over the last couple of years, while the telephony voice calls revenue of the Antigua Public Utilities Authority (APUA) revenues have been stagnant, and even declining. VoIP has been illegal in Antigua since the introduction of the Telecommunication Law in 2003, but an article in Telecom Web suggests thatthe Government may now move to enforce this ban, on the basis that they are losing tax revenues from VoIP services.

Telecom Web also suggests that the move may be linked to the massive revenue losses that Antigua is suffering from the U.S. gambling ban (an issue that has been pursued though the WTO). In the long-term, VoIP may be legalized as part of moves towards liberalization and the ending of Cable & Wireless' monopoly. The Antigua Sun quotes Darren Derrick, general manager for Digicel, a competitor in Antigua as saying that negotiations over liberalization have not been going the way he had hoped.

Antigua represents a microcosm of larger issues facing many other countries and small island states heavily dependent on tourist and telecommunication revenues.

The ITU has conducted a survey of the legal and regulatory status of VoIP around the world in 2006. For more information, see here.