The awarding of three all-island wireless broadband licences scheduled for January could provide the revolution in Internet access that the Information Communication Telecommunication (ICT) sector has long hoped for, believes Telecommunications Minister Derrick Smith.

The Spectrum Management Authority (SMA) will next week invite proposals from companies interested in providing wireless broadband Internet services using the 2.5 gigahertz (GHz) spectrum, with licences expected to be granted six weeks later. Among other criteria, bidders must satisfy that they intend to offer low-cost and prepaid packages, similar to those offered to mobile phone subscribers.

Currently 21 per cent of Jamaican households have broadband Internet access, according to research by the University of the West Indies (UWI) Mona. Meanwhile wireless and mobile broadband is expected to widen Internet access by allowing customers in remote areas to receive service, when they might otherwise have been under-served by fixed line providers.

"I think this at least has the potential to double or triple whatever it is right now, especially in rural Jamaica, which is greatly underserved and this will give deep rural Jamaica a boost in terms of access to broadband," Smith told the Business Observer following a press conference held at Jamaica Pegasus Hotel in New Kingston yesterday.

The process has taken two years, explained Danville Davidson, acting managing director of the SMA. Internet service provider N5 were previously issued with a wireless subscriber television (STV) licence. However, the N5 licence was revoked for inactivity and it was decided that UHF would be a more appropriate spectrum for STV, leaving the 2.5 GHz spectrum available.

Davidson cited Digicel as one of the telecommunications providers that had been frustrated by length of the process. Digicel decided to roll out its WiMAX broadband Internet service ahead in the Cayman Islands - it provides the same wireless technology in Jamaica but only to business customers and using a 3.5 GHz spectrum.
The 2.5 GHz spectrum has been reserved exclusively for wireless broadband in order to drive Internet access in Jamaica, said Karlene Francis, principal director at the ministry.

"Telecommunications infrastructure is a key requirement in terms of a country's competitiveness globally and so in order to attract investors in the telecommunications sector, as well as investors as general in the all other sectors, we need to promote broadband access...Fixed line penetration is not moving as fast as mobile broadband because mobile requires less capital investment, so in order to accelerate broadband penetration then this is one of the key strategies that is going to be used," said Francis.

She added that successful bidders would also need to offer value-added services, including mobile banking (its feasibility for Jamaica and possible legislation will be the subject of a Government study next year).

Smith stressed that the four-stage bidding process would be as transparent as possible: (i) The SMA will invite proposals next week; (ii) Pre-qualification whereby applicants will be reviewed by an SMA evaluation committee to decide the approved bidders; (iii) Sealed bids to be submitted within a set time frame and (iv) Granting of licences.

Trousers in Denim

Cream of the 'Crop'

Cheeky's World