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Fibre optic licences awarded
Fibralinks, TCCC to invest $5b in undersea links
Observer Reporter
Thursday, January 06, 2005

Commerce Minister, Phillip Paulwell (centre) converses with Richard Pardy, chief executive of Fibralink Jamaica Limited and Brian Crawford, president of Trans Caribbean Cable Company (TCCC) at the press conference announcing the awards of two undersea fibre optic licences yesterday at the Jamaica Pegasus Hotel. (Photo: Karl McLarty)

The government yesterday granted two licences for the construction and operation of two submarine fibre optic cable networks linking Jamaica to North America and the rest of the world.

The total investment of over $5 billion, to be made by Fibralink Jamaica Limited and Trans Caribbean Cable Company (TCCC) Limited, will see the end of the monopoly on fibre links into Jamaica, opening the opportunity for competition in the routing of data and voice traffic.
Fibralink is a joint venture company - in which Merit Communications holds 33.3 per cent, and 66.7 per cent foreign-owned.

TCCC, which already transacts business in the Caribbean, is a consortium of 32 foreign and local telecommunications carriers and service providers.

"This is a most significant achievement in the development of a knowledge-based society in Jamaica as we can now expect affordable rates in provision of high speed broadband Internet and other data services," said Minister of Commerce and Technology Phillip Paulwell at a press conference in Kingston yesterday.

"This will assist in no small way to realise the vision for Jamaica's experience in the area of information and communication technology to be catalyst for increased regional and Caribbean integration and trade."

Paulwell said under the terms of the licences, both companies are required to provide services at prices 70 per cent below the existing prices.

Paulwell, since 1999, has been at the forefront of efforts to erode Cable and Wireless' communications monopoly.
The fibre optic link represents the final stage of the liberalisation plan.

"I am confident that with the granting of these licences for the establishment and operation of international telecommunication facilities, Jamaica's shortage of international connectivity will be addressed and consumers will benefit from clearly improved infrastructure," he said.

Chief executive for Fibralink Jamaica Limited, Richard Pardy, noting that the process has already begun, said the link would be up and running by October of this year.

"We are scheduled to have our fibre up and operating this fall. We are targeting October," he said, adding that the slated budget is US$50 million.

"It is a huge task; we have engineers already working," he said.

Brian Crawford, president of TCCC, agreed with the minister that the new link would result in "lower costs to all Jamaican consumers."

The TCCC will lay down its cable from Jamaica to Dominican Republic to Puerto Rico and into Miami. While Fibralinks' cable will run from Jamaica to the Bahamas into Florida.


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