The Ideal Convergence

What opportunities drew Altice to invest in the Dominican Republic?

It is no secret that the Dominican Republic is one of the fastest-growing markets in Latin America. There was an interesting opportunity that seemed to fit well with Altice’s vision of where telecoms are going. We are a company that has a strategy of convergence between fixed and mobile, and there were essentially two companies up for grabs, Orange and Tricom. We are a company that believes in convergence between media and telecoms, and the Dominican Republic is a country that loves its entertainment. We also saw a great opportunity not only to invest more in networks, bring connectivity to the people, and democratize access to the internet and telephones, but also to boost employment, education, information, and entertainment.

What benefits come from converging different forms of media?

One of the most important benefits is that we are good at it. We are good at running networks, investing in networks, and have a good understanding of what products are the most suitable for a given network. We also have a proven track record in Israel and France of producing high-quality media that is attractive to the end user. We believe there are synergies between both industries. Obviously, there is an ongoing shakeup in the industry with the arrival of Netflix and others, and in the future it will be difficult to extract the most value out of your broadband connection if you are not also offering the content that is being delivered on it. This does not mean we want to be the only provider of content because there is great content already out there, but we do think it is important that we are somehow a part of that value chain. This is how we deliver the best internet experience, the best smartphone experience, and create a meaningful and sustainable relationship with our customers.

Will your strategy with Tricom and the cable services you offer evolve in the coming years?

In fact, we already have. Just this year we have taken some interesting steps. We have a partnership with Discovery Kids and Fox, and we have an app available here. Additionally, users can extend their viewing onto their tablets or smartphones. We have also initiated exclusive partnerships with existing content producers. We have a long relationship with Caribbean Cinema, which is the leading movie theatre chain in the entire Caribbean. This relationship has now morphed into a more direct relationship, and we have recently launched a TV station together. Caribbean Cinema has a long history of buying traditional Hollywood offerings, but it also purchases smaller scale Dominican productions. We have configured a TV channel with the best premium entertainment content in the market, which is available exclusively to our customers. So in a way, we have embarked on the first step in encouraging local content tailored for our customer base.

What are the broader economic implications of expanding the network and getting more Dominicans regular internet access?

There is a clear correlation between internet penetration and GDP growth, but on a smaller scale the effects are more profound. If we take the example of the small organic banana farmers in the northern part of the Dominican Republic, the internet has dramatically changed their entire economic existence. Their opportunities to market and sell their product and to understand the dynamics of the entire market have shifted in profound ways. From a micro perspective, the internet creates extraordinary opportunities for the most underprivileged. The internet lowers the barriers of entry for the small entrepreneur in ways mankind has not before seen. Of course, information asymmetries persist, but they are the smallest they have ever been. We all now have a responsibility to ensure that everyone with access to information also has the tools and capabilities to use this information. We believe internet and education are the two fundamental cornerstones of building a model economy and democracy.