A royal ‘mesh’

Use of devices that have the capacity to enhance cable and Internet services are denting the bottomline of the telecom companies. Smaller players are feeling the heat. According to the cable companies executives, customers are opting to install devices such as the mesh router (while traditional routers broadcast WiFi from a single point, mesh WiFi systems have multiple access points), denting their income.

There is also an influx of streaming devices being used on smart televisions, which eliminate cable television services.

A former CEO of one of the leading cable operators in the Corporate Area who requested anonymity told The Gleaner that he realised that issues were deep-rooted, he had to “shut down and give it up”.

“We believe that two things were happening, number one, the guys were selling illegal boxes that seem to work forever, and number two they were linking houses not only by themselves, but customers. For instance, a customer decides to take out the fastest Internet and share it to five different people. We would have a situation where instead of five customers we only had one,” he said.

“Because Internet [from established companies] is very expensive. So you wire a certain amount of houses and the infrastructure cost you x amount and when you go there you run five miles of wire and you end up with six customers and then the six splits to another 60 leaving you with the infrastructure cost that you must maintain. As a result of that I said I not gonna bother with this game,” said the former executive.

“That industry me haffi just run leave it. My other big problem was JPS. Their bill was just ridiculous, and you just can’t keep up with it so I had to just cut and leave them,” he said, of acts of vandalism and undermining still plaguing the sector.

SOLD BY EMPLOYEES

A lot of times these devices are reportedly recommended and sold by employees and contractors, the operators said.

The Gleaner spoke with several cable operators across the island who said that they have to be vigilant are often required to improve their mechanism to safeguard against employee theft or revolution in technology.

Nicolee Wright, manager and director at Mars Cable in Manchester said they have had staff turnover because of reported corrupt practices.

“We have much better staffing now than previous years. Yes, we had a few challenges, nothing too major, but it was a bit of challenge here and there,” Wright said.

Mars Cable provides Internet and cable services, however, Wright said she was not aware of the mesh router and that technicians sell to customers.

She, however, said that she is aware of the ‘cable for life’ that some employees and customers are engaged in.

“The mesh router, that one is new to me, but for the issuing of box and the technician collects, for my company it is somewhat minimise unless it is someone from the inside who is working with them, that can happen. I’m not saying it can’t happen in my organisation, but someone from the inside will have to be working with them on the outside. It’s not like you can just put a device on and they have service,” Wright said.

She too underscored that these practices destroy business over time.

“Others will hear of it and they will want to be a part of it. The technicians will start to have their own business out there selling, from my business so I would be losing income and you would not be hearing from those customers any at all. They will be in contact with the technicians. Only time you will hear of it, is when the relationship between them has gone sour,” Wright said.

Mars Cable has been servicing central and south Manchester covering Porus to Mandeville to Christiana for over 15 years.

A representative of Stars Cable WiFi in Ochi Rios told The Gleaner that they too have had challenges in the past.

A service technician who asked not to be identified informed that cable for life can be sold for $15,000 to $20,000 per box.

“A long time people a steal cable and now some find it beneficial to configure their own WiFi set-up and collect from those in reach. Anywhere there is multiple boxes to an account, once you get hand on one is gold. That’s all mi ago say. The mesh router is just teaching customers how to fish. If paying for the Internet is hard then it ago share and collect,” the technician said.

BEST THING

A Corporate Area customer of Digicel said the mesh he acquired from a technician is the best thing since slice bread.

Checks by our news team on Amazon revealled that the devices are sold for as low as US$70.

“I got disconnected for owing $15,000. I still have that box. Mi buy the lifetime cable box for $15,000 and all I needed is WiFi for it to work. My neighbour have the WiFi so I bought a mesh router and connect to the Internet and my cable for life works. If dem don’t come for this box which is their property, and mi have the mesh mi good,” the resident said, showing both devices.

The customer said that many people are not aware that they pay more for the WiFi than cable in the digital era.

“Dem a mek more money off the WiFi because a it power your phone and TV. Some people don’t watch cable. So people going for the WiFi so that make the mesh work like magic,” the resident said.

Last month the St Andrew North police arrested and charged two FLOW subcontractors, 52-year-old Barry Wallace and Kevin Brown, 48, who were caught at night uprooting cable in the Lawrence Tavern community.

Kayon Mitchell, director of communications at FLOW, told The Gleaner that the past decade has seen the company grappling with theft and vandalism. She informed that FLOW has conducted comprehensive investigations into all reported incidents.

“Over the past 10 years, there have been a total of 145 arrests spanning 93 cases related to theft and vandalism of our infrastructure. So, while unfortunate, we regard this as an isolated incident,” Mitchell said.

She added that the issue they are up against is a pervasive one.

“It is reflective of the bigger crime challenge facing the nation and can only be curtailed by taking the decisive legislative actions necessary to protect the industry and Jamaica’s national development,” Mitchell said.

As it relates to instances where employees are selling cable for life, FLOW said they have a robust revenue protection department which investigates all instances of revenue loss and fraudulent activity.

“Where instances of impropriety and lawlessness are found, the appropriate disciplinary actions are taken and where necessary, these are reported to the police for further investigation, and for perpetrators to be prosecuted to the full extent of the law,” Mitchell said.

The Gleaner contacted Elon Parkinson, Digicel’s group head of communications and corporate affairs, but up to press time, the news team’s queries were not answered.

WIN-WIN

A member of staff, who requested anonymity, said that with devices like mesh router taking the market, it would mean more money for Digicel.

“Its a win-win, just like when a person use WhatsApp call instead of direct calls. It slow down credit purchase, but you would still need Internet to connect. So if 10 persons on one system the supplier would need greater bandwidth and stronger Internet package which mean they would buy more,” the manager said.

Regarding the sale of boxes, and cable for life, the manager said they know it is happening by way of complaints from customers and internal chatter.

The chief operating officer of another digital telecoms provider said that while they are a smaller player in the industry once you are in business you are going to be aware of risks and should put things in place.

“If technicians are employed in the field, for any kind of claims that they make, you find a way to verify the work that is being done which may involve a simple video, pictures of the completed work and customer feedback,” the executive, who requested anonymity, said.

He also said having a contractor base that is small and manageable, that one can communicate with on a day-to-day basis is recommended.

“I can see where it could definitely be a problem because once you get to a certain scale it’s more difficult to manage and verify,” he said.