THE explosion in the use of social media and mobile applications in recent years has dictated what will largely be in store for the telecommunications sector this year.

And while dramatic reduction in call rates was the highlight of 2013, the introduction of number portability this year is set to change the face of the industry once again.

Both mobile providers — Digicel and LIME — have already started investments in expanding, strengthening and speeding up their networks.

LIME says it will continue to roll out its $8.4-billion mobile network upgrade and expansion project, which is designed to deliver “the fastest 4G speeds” and which is scheduled for completion in October having begun last year.

“Some customers are already experiencing faster browsing speeds and are able to do a lot more with their tablets, laptops and smartphones connected to the LIME network,” said Elon Parkinson, LIME’s corporate communications manager, in an email response to the Business Observer.

Following on a $7-billion investment in its network between 2011 and 2012, Digicel said that it spent an additional $4 billion last year and has committed to investing a further $4 billion in its 4G mobile broadband technology in 2014,primarily to increase penetration and capacity.

“Our aim is to continue to invest and make improvements to our network in order to meet the demands of our customer base,” said Barry O’Brien, CEO of Digicel Jamaica. “Digicel continues to expand our 4G network, which already has 80 per cent population coverage.”

The increased demand for mobile data and data-enabled handsets has been phenomenal.

“In 2013, we saw a 50 per cent increase in data-enabled handsets compared to 2012 and based on the trend, we expect this to continue,” said the head of Digicel Jamaica. “The adaptation of the Bring Your Own Device (BYOD) phenomenon further supports the argument that smart devices are the future of mobility.”

Still, broadband penetrati—on still has a way to go  the latest report by the Broadband Commission of the International Telecommunications Union estimated mobile broadband penetration in Jamaica at 1.6 in every 100 inhabitants and 4.3 per 100 for fixed line in 2012.

The potential for expansion is tremendous, given that by some estimates the economy grows by 0.5 per cent for every 10 per cent increase in mobile broadband penetration.

The failure of the Spectrum Management Authority (SMA) to sell two licences in 700 megahertz (MHz) band last year might have been a setback, while it is not clear if there is any real interest in the other spectrums — 1800 MHz, 1900 MHz, 2.5/2.6 gigahertz (GHz) and the 1700/2100 MHz bands — for which the SMA invited expressions of interest last month.

Of course, additional spectrum will have to be issued within the framework of a recently imposed Aggregate Spectrum Cap Policy that limits the overall spectrum holdings of mobile operators at the level of 80 MHz.

The spectrum cap, along with an amendment to the legislative and regulatory framework, which allows for the development of infrastructure sharing rules, as well as the pursuit of number portability were viewed as critical steps towards enhancing competition in Jamaica’s telecommunications sector.

“Presently, Digicel is unable to deploy LTE in the prime lower 700Mhz band due to a imposed spectrum cap but will consider deployment on higher, less efficient bands,” said O’Brien. “It is of note that Digicel has already rolled out LTE networks in markets such as Antigua and Cayman (where it used the 1800 MHz band).”

The increased competition expected from the introduction of number portability, which allows phone users to switch companies and keep their telephone numbers, will likely be more pronounced than the data wars.

The Government announced that number portability would come into effect in May.

The operators of Flow say with number portability, consumers will be the real winners.

“Business customers that previously resisted switching providers in order to take advantage of more robust and advanced technologies and greater cost efficiencies will be able to do so more readily with number portability,” Michele English, president of Columbus Communications Jamaica, previously told the Business Observer.

At the same time, Digicel announced plans to aggressively go after the fixed line market — an area that LIME dominates, and at which Flow is chipping away.

Competition aside, players in the telecommunications sector continue to face another major challenge this year.

Despite a strict scrap metal regulation being introduced at the start of 2013, as well as public awareness and closer collaboration with law enforcement, LIME is still concerned about the theft of fuel and dry cell batteries from its installations.