
Cell provider considering wireless landline service
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Observer Reporter Thursday, March 18, 2004
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CELL provider, Oceanic Digital Jamaica Ltd, is considering the launch of a wireless landline service.
"It is very conceivable to develop what we call a wireless replacement offering, that is under advisement," said Craig McBurnett, Oceanic's chief executive officer, following yesterday's signing of a US$30-million Inter-American Development Bank (IDB) loan at the Hilton Hotel in Kingston. Oceanic said, however, that the launch of a landline service would depend on the demand of the service, balanced with the introduction of other services such as its high-speed mobile Internet and islandwide cellular coverage. McBurnett said that Oceanic would use the existing wireless technology to offer the landline service.
The US$30-million loan from the IDB will fund Oceanic's cell expansion project and new services. The total cost of the projects is US$85.2 million, for which Oceanic will provide US$55.2 million, and the balance funded by the IDB loan.
McBurnett declined to disclose the details of the loan and gave no timeline for which Oceanic was expected to start breaking even.
"A timeline all depends on the roll-out of new services, driven by the demand," he said.
Oceanic, which recently just completed coverage in Ocho Rios and is aiming for St Elizabeth shortly, now covers 70 per cent of the population. McBurnett said that coverage is critical to the continued growth of its customer base, and is committed to build out the service.
"We expect to double our customer base to 140,000 by 12 months," he said. Oceanic currently has 70,000 subscribers. Oceanic began offering cellphone service in Jamaica about two years ago, having paid US$45 million to the Jamaican government for the cell licence in 1999.
Cable and Wireless Jamaica controls the bulk of the near 500,000 landline customers, with a small number served by wireless landline provider Gotel Communications.
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