‘COUNTRY FIRST’
Utilities, telecoms collaborate to maintain critical services
WHILE rivalry remains part of doing business, Jamaica’s utility providers adopted a “country-first” approach following Hurricane Melissa, according to Digicel Jamaica CEO Stephen Murad, who noted that the scale of the devastation in affected communities demanded cooperation and a sustained commitment to helping residents recover.
Murad said that although telecommunications companies and utilities compete daily for customers and market share, the focus shifted dramatically after the storm left communities across western Jamaica struggling to rebuild.
“I think it’s important to get back to the crux of what we do as entities around protecting Jamaica. That’s the thing that keeps me awake every single night — to think about what we can do. I know Hugh [Grant, president of the Jamaica Public Service (JPS)] is not here, but I think since Hugh came along, the collaboration between all of us is absolutely tight,” he said.
Murad was speaking during a Jamaica Observer Press Club last Thursday at which representatives of the country’s major utility providers discussed preparations for the Atlantic hurricane season, which begins today.
The Digicel CEO argued that one of the most important lessons from Hurricane Melissa was the value of cooperation among organisations responsible for maintaining critical services.
“Hugh and I will have all the rivalry in the world, absolutely, and that’s important from a customer perspective, but country first. It’s all we thought about, whether you’re red or blue, it doesn’t matter…country first, recovering the country, [because] there are still people that are feeling the after-effects of the most devastating events in a long, long time, and we shouldn’t forget that at all whatsoever,” he explained.
Murad also stressed that the recovery effort extended beyond restoring telecommunications services, noting that Digicel continues to support affected communities months after the hurricane.
“We are an essential provider of services, and we don’t stop until we get those services provided. Yes, it’s important from a business perspective, absolutely, but it’s also because we live and operate here. We employ probably 1,000 people here each, and…it’s important that we understand the impact on them,” he said.
Similar sentiments were expressed by Flow Jamaica Vice-President and General Manager Stephen Price, who said utility providers have been balancing the need to strengthen infrastructure while absorbing mounting costs associated with disaster recovery and global supply chain disruptions.
Price revealed that Flow has spent approximately US$85 million on recovery efforts since November and a further US$27 million on spectrum to accommodate increased network demand following Hurricane Melissa.
He said the company has also expanded backup power systems, undergrounded roughly 80 kilometres of transmission cables, and reinforced critical facilities vulnerable to storm surge.
However, he cautioned that building more resilient infrastructure comes at a significant cost.
“We are one of the small island developing states, [and] this kind of infrastructure is expensive, this kind of infrastructure costs real money, [and] we know the kind of situations and pressures on the economy that can have. We’ve seen inflation numbers since the hurricane, you notice none of us have increased rates as yet, we’ve absorbed the fuel price increases and all these costs that are coming in,” he added.
Price said the cost pressures extend well beyond fuel, with petroleum-based products, fibre infrastructure, shipping, and other imported materials all becoming more expensive in recent years.
While stressing that utilities are attempting to shield customers from those increases, he suggested that further investment in resilience may eventually require adjustments.
He also hinted that customers could eventually face higher charges as providers continue investing in more resilient networks.
At the National Water Commission, Corporate Public Relations Manager Delano Williams said the agency is spending approximately $1.2 billion on additional generators for major and secondary facilities across the island, while also strengthening arrangements with trucking contractors to ensure water can be delivered quickly during emergencies.
Meanwhile, JPS Chief Operating Officer Lance Becca said the electricity provider has expanded partnerships with utilities and suppliers overseas, allowing the company to access critical materials more quickly following major disasters and strengthen its contingency plans for future storms.