Caribbean Telecommunications Union was established in 1989 in Nassau, The Bahamas, by treaty. CTU was established by the Heads of CARICOM Governments in an atmosphere of cautiousness about setting-up new organizations.

The Organisation established its Headquarters in Barbados, on agreement with that Government in 1990, but relocated to the Republic of Trinidad and Tobago, where it continues to function in accordance with the terms of a Headquarters Agreement, dated April 8, 1993.

The Union enjoys, in its member constituencies, full legal personality and capacity to contract, acquire and dispose of real and personal property and to be party to legal proceedings. It also enjoys immunities and privileges accorded to diplomatic and international organizations of equal status.

At the time of the establishment of CTU, the role played by the operator-group, CANTO, and Technical Assistance by the International Telecommunication Union, were already of significant value.

CTU was set up on the recommendation of the Ministers for Telecommunications to correct:-

1.  the fragmented policy frame of telecommunications sectors of member countries;

2. the problems of frequency incompatibility between and among member countries

3. the lack of Caribbean input in major international issues, which disregarded rights and sovereignty of the Caribbean states, thereby denying them opportunity

4. the absence of coordinating machinery to facilitate an increase in the impact of resources and assistance for Caribbean telecommunications development.

The specific objectives and Functions of the Union are set out in the section, Excerpts From The Articles Establishing CTU and Functions Of The Union, respectively.

The Union membership has done all necessary acts to ensure the elimination of monopoly and introduction of service delivery in a liberalised environment.

Developments in the telecommunication field have further complicated the issues as the various services have converged, thus rendering telecommunications a means to converged services, aimed at the delivery and propagation of IT. The World Trade Organisation declaration of telecommunications as a tradable service and a delivery system has also contributed to the new move to ICT.