Two mobile licences to be put on auction - Paulwell
Published:Wednesday | March 27, 2013 | 12:00 AM
Daraine Luton, Senior Staff Reporter
Phillip Paulwell, the minister of science, technology, energy and mining, is insisting that despite Jamaica having reached the point of saturation in voice telephony service, there is still great potential for the mobile market.
The minister yesterday announced in the House of Representatives that Jamaica is to auction two licences for use of the 700 MHz band, with a view to attracting new entrants to the wireless telecommunications market.
"If we can get a third player through this, then it will lead to better quality broadband services at lower prices than prevailing ones," Paulwell told The Gleaner.
Paulwell told the House of Representatives that the Government hopes to issue the licences by July 15.
He also said the licences would be open to current wireless providers but it is hoped that at least one will be taken up by a new investor.
"It will also force the existing player to shift focus from voice to data services. There remains a significant shortfall in the provision of data services islandwide. This will now be corrected and thereby enable Jamaica to improve its international e-readiness ranking," Paulwell said.
Jamaica is ranked at 74th in the world in e-readiness, which refers to the ability to use information and communication technologies (ICT) to develop one's economy and to foster one's welfare.
Only two players
At present, there are two players in the wireless market, LIME, and Digicel. A third player, Claro, last year sold its portfolio to Digicel and left the island.
Yesterday, Audley Shaw, the member of parliament for North East Manchester, questioned whether there is space in the market for a third player.
Paulwell said the data market provides a tremendous opportunity for businesses.
"Very soon, voice telephony will become a free service. We are almost there already. All you need to do is to purchase the data and you can use so many other voice application free of cost," Paulwell said.
He added: "There is tremendous scope in Jamaica to accommodate broadband services delivered by wireless technology and so I have no doubt that those who are looking on, including the existing players, will see this move will see that this move is absolutely critical if they are to survive in this marketplace."
In addressing the House yesterday, Paulwell said the Government would begin pre-auction activities in early April 2013 with the issuance of an information memorandum which would be advertised internationally, as well as posted on the websites of the ministry and of the Spectrum Management Authority.