Digicel buys 700MHz band at near half price
Published:Thursday | April 3, 2014 | 12:00 AM
Daraine Luton, Senior Staff Reporter
HAVING FAILED last year in its bid to sell bands on the prized 700-megahertz (MHz) spectrum, the Government yesterday announced that it has inked a deal with Digicel for the purchase of one of the three bands.
Phillip Paulwell, minister of science, technology, energy and mining, said the band had been sold for US$25 million, which is US$20 million less than the US$45 million the Government was seeking for each band on the spectrum last year.
The minister, however, shot down suggestions that the Government had engaged in a fire sale of the band in order to get quick cash to enable it to make the primary-balance target under the economic programme with the International Monetary Fund.
"In relation to all of the negations that we have been engaged in, there have been very tough negotiations. In fact, at various times, we were at a point where we didn't think we could be successful, but I think in the spirit of cooperation and compromise, we were able to achieve that," Paulwell said, during a press conference held at his New Kingston offices.
"In retrospect, it would have been difficult for us to have got as much as we thought there was value in it and even after we were seeking to negotiate, we were way below the US$25 million. People were coming to us at 10. Getting 25 in the end has been quite significant," the minister added.
The 700MHz band tends to be more penetrative and is seen as a cost-effective option to deploy 4G technologies such as long-term evolution (LTE).
Paulwell said Digicel "will be expected to roll out its services across the islands over time to allow the delivery of data, Internet applications and video streaming at higher speed".
He said that having awarded one of the 700 bands, the Government was "really hoping that we get other bands disposed of within the price points as we have determined".
HUGE DEVELOPMENT
Meanwhile, Barry O'Brien, CEO of Digicel, said the LTE technology would significantly advance his company's position in the Jamaican marketplace.
"This is a huge development for Digicel," O'Brien said, while nothing that his company's network has been designed with the rollout of LTE in mind.
He said the rollout of fiber technology would serve as the backbone that will enable LTE services on the island.
"It does give us the confidence to further invest in Jamaica," O'Brien said, while adding that it would go a far way in driving growth in the ICT sector.