WILLEMSTAD – Curaçao has a new telecom company: AquaTel, officially founded as an initiative of Integrated Utility Holding NV/Aqualectra NV. The company promises to deliver better and more affordable services than other telecom providers on the island.
According to Zita Jesus-Leito, an independent member of Parliament and former Minister of Economic Development during the restructuring of the Pisas II Cabinet, the establishment of AquaTel is now complete. She stated that AquaTel’s statutes have been amended and signed, officially launching the company.
The creation of AquaTel stems from the desire to improve Curaçao’s telecom market. For some time, there has been a demand for better and more affordable telecom services, noted Jesus-Leito and other members of Parliament.
The idea for AquaTel originated during the Pisas II Cabinet but was revised after the coalition between MFK and PNP dissolved. AquaTel’s mission is to increase competition and provide more options for consumers. The MFK has previously expressed that residents should not rely solely on commercial companies for essential services like internet and telephony, as the risks are too significant.
Next Steps: Obtaining a License
When AquaTel will become operational is still unclear. In an interview with the Antilliaans Dagblad, Aqualectra CEO Neysa Schoop-Isenia said that the next step is securing a license. This license, issued by the Regulatory Authority Curaçao (RAC), formerly known as the Bureau Telecommunication, Post, and Utilities (BTPU), will allow AquaTel to offer its services officially.
Fair Competition Concerns
The competition between AquaTel and existing commercial providers like Flow and Digicel raises questions about fairness. As a government-affiliated company, AquaTel might benefit from advantages such as financial support or favorable regulations that commercial companies lack, potentially disrupting the market.
Conversely, AquaTel’s establishment could stimulate competition in a market dominated by a few players, benefiting consumers through lower prices and improved services.
Whether competition remains fair will depend on equal opportunities and rules enforced by an independent regulator, which in Curaçao is the RAC.
Government vs. Private Sector Competition
Competition between government-linked and commercial entities is not unusual in other countries or industries, such as energy, telecommunications, and public transport. However, ensuring a level playing field is crucial to prevent market distortions. The success of AquaTel in fostering healthy competition on Curaçao will largely depend on how the RAC regulates the market and enforces equal conditions for all players.
