The slashing of high-speed internet cost by up to 35 per cent by telecom provider Cable & Wireless Jamaica (C&WJ) is good for consumers, say some industry insiders, but at least one Internet service provider is concerned that the rate cut will hurt competition.

The state telecom regulator, the Office of Utilities Regulation (OUR), said that the move was good for aiding the achievement of universal Internet access.
At present, access hovers at around five per cent of the population.

"We welcome the reduction. Any time rates fall it is usually good for the consumer," said David Geddes, public relations officer at the OUR.

The rates became effective on November 15.
"We hope it will help the process of universal access by increasing Internet access across Jamaica, because certainly price was a factor in not achieving it."

ADSL, the high-speed Internet offered by C&WJ, allows users to download large multimedia files, music, games, video, and software with relative ease.
Additionally, the connection is "always on" and there is no need to dial-up to the Internet.

The popular connection of 256k which is four times faster than the 56k dial-up connection is now selling for US$60 down from US$93.
Jamaica's high-speed internet rates have been almost three times that of the United states although its dial-up rates are similarly priced.

Garfield Bolt, ISP manager at Anbell, said too that the new high-speed price was "good for consumers" but reserved comment on the effect it would have on the ISP market.
Bolt has criticised C&WJ's pricing strategy to ISPs in the past.

The telecoms company controls the main fibre line which exits the island and has been accused, even by the OUR, of dictating bandwidth prices to ISPs. The sector is so competitive that no other provider, save for N5 Limited, currently competes against C&WJ in offering 24-hour high-speed Internet service to residential customers.

But that could change as C&WJ has also reduced its rates to ISPs by as much as 36 per cent. The ADSL port rental fee - ports connect customers to the Internet through ISPs - has gone from US$36 to US$23.

This reduction has caused Hugh Campbell, chief executive officer of Emoquad, to contemplate re-entering the high-speed Internet market.

But Campbell said that even though port charges are reduced, there is no guarantee that there is enough supply.

"They reduced the wholesale rate to ISPs," he said, "but they need to tell us how many ports are available to ISPs."
However, Campbell added that other costs are involved separate from port charges, such as direct Internet access (DIA) fees which are still high - starting at US$3,061 and ranging to as high as US$5,511.

DIA enables seamless access to Internet services such as e-mail, web browsing, file transfer, e-Business and intranet applications.

He said that his company would be calculating costs using the reduced fees.
"If it is profitable then we will get back into" that market, said the Emoquad manager.

The price reductions came a week after three providers applied to the OUR to build an alternate fibre line into the island.

The addition is part of the government's strategy to reduce the cost of high-speed Internet, and the telecom giant's offer appears as a pre-emptive move to lock in its market way ahead of any new players entering the game.

The company itself says its aim is to help bridge the digital divide by making the service more affordable.

"This latest re-pricing and re-packaging of our ADSL service is part of the company's continued thrust towards making Internet access, and specifically high-speed access, more affordable to as many Jamaicans as possible," said C&WJ senior vice-president for marketing and communications, Patrick Gillings.

"Our company is committed to doing its part to help bridge the nation's digital divide, and this is yet another initiative aimed at increasing Internet penetration, thereby moving us closer to the rest of the world in terms of Internet access, and specifically broadband Internet access."

C&WJ's new price structure, for monthly ADSL

128K - US$45; down from US$66
256K - US$60; down from $93
ADSL Select (512K) - US$90; it is a new package;
ADSL Premium (768K) - US$120 down from US$129;
Business Select (1,024K) - US$325 down from US$499, and
ADSL Business (1,544K) - US$500 down from $750.

Note: the prices do not include GCT.

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