THE EDITOR, Sir:
While in competitive markets abroad, Cable and Wireless is being forced to face the consequences of its poor performance, here in the Caribbean -- and particularly in Jamaica where it has a licensing agreement that guarantees 17.5% return on investment -- it is business as usual for the company.
The iniquitous nature of the agreement between C&W and the government of Jamaica, makes it highly unlikely that its local executives could be punished for "bad decisions" -- as happened recently to top managers of C&W North America. The licence guarantees the company a healthy profit, but imposes no compulsion on it to give quality service.
In the USA, C&W will have to spend nearly a billion US dollars to extricate itself from failed commercial operations after regulators pressured the company to bring rates more in line with the global level. Here, our government is unwilling, or unable, to initiate any action against the company.
The restrictions imposed by Cable & Wireless on expansion of Internet use into areas like voice transmission is an example of the way it abuses its dominant power.
Looking around at the existing local telecom environment, I see no reason to believe that in short order, a policy regime will be developed to allow consumers the level of Internet access enjoyed in many countries.
That's why I look forward eagerly to the day when the current Cable & Wireless licence expires. The telecom sector will than be opened up to more competition, to the benefit of everyone.
The source of some of our telecom problems can be traced to a raft of misguided government policies, including the assumption that data processing firms would play a much bigger role in the economy. As it turned out, most of these companies could not afford the rates charged by Cable & Wireless. And their operations were further undermined by the unreliability of the company's services.
Opening up the sector will help others in the telecommunications sector, such as the cable television industry, which has a network of cables even more extensive than that of Cable and Wireless.
I am, etc.,
ALEXANDER MURPHEY
16 Maxfield Avenue
Kingston 13
