Ross Sheil, Staff Reporter
Judy Hylton, sergeant-at-arms of the Rotary Club of St. Andrew, piques the interest, Minister of Commerce, Science and Technology, Phillip Paulwell, at the club's weekly luncheon held at the Jamaica Pegasus Hotel in New Kingston yesterday. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
AT LEAST two telecommunications providers are lining up to bid for Jamaica's fourth cellular phone licence, Minister of Commerce, Science and Technology, Phillip Paulwell, told The Gleaner yesterday.
The minister would not reveal the identities of the providers but said they were from the United States and the United Kingdom. Bidding for the licence is due to begin in the next 30 days.
U.S. provider AT&T surrendered the fourth licence it bought for $300 million in 2004, after the company was purchased by its U.S. rival Cingular last year. The licence had first been put up for auction in 2002 but failed to reach its reserved price of US$15 million.
However, the minister was insistent that AT&T's decision not to make good of the licence did not mean there was no room for growth in Jamaica's telecommunications market.
"I believe there is room for growth in relation to voice telephony, wireless Internet and wireless data services," he said, adding that there was special opportunity for U.S. providers.
"We have a million U.S. visitors each year and there is therefore a huge market for roaming and other niche products - both for tourism and business customers," he said. The thousands of visitors from the U.K. and Europe each year explained the interest of the U.K. provider.
500,000 MORE CUSTOMERS
Minister Paulwell's optimism was backed up in part by Digicel Chief Executive Officer, David Hall. He told a recent Gleaner Editors' Forum that a further 500,000 cellular customers could be added in the next three years before that market reached saturation.
Neither Minister Paulwell nor Colin Campbell, chairman of Spectrum Management, which together with the Office of Utility Regulations will manage the bidding, would speculate on the eventual price. The reserved price, Mr. Campbell added, will be determined by the type
and size of spectrum - telecommunications frequency - the Government decides to auction.
