Richard Pardy, chief executive officer of Flow, in discussion with Jamaica Teachers' Association President, Mrs. Ena Barclay, regarding his company's new education initiative offering educational cable television in classrooms and libraries, wherever Flow's service is available. The occasion was a press conference at the Hilton Kingston hotel on Wednesday, September 26. - Contributed

Flow Communications said last week that it paid $28 millon for its digital licence from the Broadcasting Commission at the end of August, which allows it to provide all-island cable-television service.

However, with the licence came some material conditions from the regulator, including Flow's obligation to build out 63 zones, covering the 25 per cent of households where there is no cable-television service.

The company must deploy its network within four years, and offer free cable service to all public schools and libraries.

Flow announced the latter aspect of the programme on Wednesday at a press conference.

The regulators also stipulated that 16 of the 63 zones be constructed within the first year, that Flow meet with them on a quarterly basis, and that Flow repair roads it excavates to lay cables.

Flow will also be under the scrutiny of the commission to safeguard against any abuse of its dominance.

licence granted

The granting of the licence has resulted in an adjustment in the Television and Sound Broadcasting Regulations to allow existing subscriber television companies to expand their services into other zones.

"It's the first of its kind and we presumed that anybody who was in our position would've been charged, based on their calculations," said general manager of Flow, Michelle English, in a response to Sunday Business on the price for the licence which the company first sought in March 2005.

English said Flow expected to close the deals, on another another three acquisitions in the remaining 13 weeks of the year.

Eight acquisitions

That would bring its acquisitions to eight, the other five being SAUCE Communications, D&L Satellite Communications, Northern Cable and Communications Network, Matrix Entertainment and Communications and Jamaica Amalgamated Cable Systems.

The company is also looking to buy more companies in 2008.

"We have three or four lined up for early next year," said English.

Earlier this month, Flow revealed that it planned to spend $5 billion to $7 billion annually over the next three years to finalise the islandwide roll-out of its triple-play services.

Outlining progress to date on the network's build-out, Columbus Communications' chief executive officer, Richard Pardy, said at the Hilton press conference, that Flow aimed to complete 80 per cent of Kingston/St. Andrew by year end, and 100 per cent by March 31, 2008.

The 16 zones in Kingston, St. Andrew and St. Ann that were without cable service are now covered as at August 31, while all of Portmore should be covered by the end of 2008.

Chairman of the Broadcasting Commission, Dr. Hopeton Dunn, said the regulatory measures have been put in place to safeguard against any abuse of dominance by Flow or any other company.

These, he said, were intended to prevent any return to monopoly operation by any player in the communication sector.

susan.gordon@gleanerjm.com