Companies that require high-speed Internet connection will benefit from more players in the industry

Technology minister Phillip Paulwell expects a reduction in the rate of high-speed Internet connection used by businesses, once another player enters the market for which a licence is to be granted by November.

Some five telecommunications companies have expressed interest in purchasing the right to lay fiber optic cables between Jamaica and Florida, joining Cable & Wireless which is still the only company to have such a facility.

"The rates that are charged now for data services are expensive in my view, because we only have one player," Paulwell told the Business Observer on Monday.
"Competition is therefore going to force the rates down and it will also make the use of DSL and broadband more available," he argued.

In July Cabinet gave the go-ahead for the licence to be awarded based on a tender process. At one stage government officials hinted that a single licence would be granted. Companies however have since said that more than one licence ought to be granted.

"The deadline for applications is two weeks' time and by the end of November we are going to issue the licence," Paulwell said.

The investment involved in laying the cables is expected to be around US$40 million, with Paulwell expecting the process to take some four months to complete.

Last week Friday, Paulwell told businessmen in Montego Bay that the persons who were interested in laying the cables had assured him that the service would become available within four months after the granting of the licence.

"In addition to the additional capacity, we believe that the service will result in less expensive rates for you," he told the businessmen.

The competition, he argued, would be positive for the business community, especially those companies that operated call centres.

Because Cable & Wireless controls the only fibre optic ring that leaves Jamaica, companies that offer Internet services and other data intensive services have to go through its network to leave Jamaica.

This is one of the last critical remaining areas in the telecommunications sector that is under the control of a single company.

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