Few takers for cable business opportunities - Paulwell

INDUSTRY, COMMERCE and Technology Minister Phillip Paulwell has expressed disappointment with the response from cable operators to the offer of licences to operate telephone and Internet services. But, this may be due to the expensive upgrading required of the operators for them to be able to offer the service.

Mr. Paulwell told the House of Representatives last Tuesday that invitations for applications of licences to the cable operators to start offering telephone and Internet services by September have already been issued, but were not attracting enough interest.

He was speaking during the debate on a resolution giving legislative effect to an Order, removing the need to pay General Consumption Tax (GCT) on computers, Compact Discs and other associated products which was announced in April. The Opposition gave full support to the move.

Mr. Paulwell said the Government was liberalising the domestic telecommunications capabilities so that a cable operator, from September, will be able to offer a telephone service as well as connect customers to the Internet, without having to do so via Cable & Wireless.

But he said that so far only two or three applications have been received from the cable operators.

Mr. Paulwell should have met with the operators on Wednesday to encourage them to take up the licences, as well as to prepare and advise them on the benefits of the new system. This meeting was, however, postponed.

He said the offer was tremendous, in terms of proposals to increase the number of Jamaicans on the Internet from two per cent to 40 per cent.

A spokesman for the Jamaica Association of Community Cable Operators (JACCO), Philmore McCarthy, told The Gleaner that although they had been informed about the issuing of the licences, they had been given no details about the proposal.

Mr. McCarthy said the operators could offer the service via their cable wires, which allow for two-way communications, "but we would need to upgrade whatever infrastructure we currently have," he said. Asked about the cost, he would only say, "it's a lot of money."

He said the operators were already in financial difficulties because of the inability of customers to pay their fees on time, as well as the additional costs, including more than $500,000 a year paid for the use of utility poles and $200,000 a month to the Jamaica Public Service Company (JPSCo) for power to transmit their current service.

Back to Business