Overview

Jamaica has slowly weaken the Cable & Wireless monopoly.  Cable and Wireless are leasing lines to companies to encourage competition among companies.  The government of Jamaica I feel needs to do more.  Jamaica seems to just settle for what the monopoly will give them.  For example they need to take a page out of United States book and bring up litigation against Cable and Wireless to open up the market more.  The idea of Jamaica bringing in competition helps the customers with deciding who their subscribers should be for many of their accessories such as: telephone, cell phone, computer, and Internet Service Providers. Jamaica has set a price cap when it comes to running telephone lines for business and citizens of the island. 

The Government has been trying to expand their access to phones and internet service to some of the poorer areas of the island.  About five to ten years ago many citizens had to wait months and weeks in order to receive a phone or to have the infrastructure build in their area.  Now that there is a price gap on service related to the following areas : data services, access to internet, and National calls.  The prices varies by the type of service and if you are a business or citizens.  Also from local to National calls, and involves inter parish connectivity.

Deregulation

Jamaica’s ICT outlook has been driven by the needs of the market and by the Government of Jamaica desire to make Jamaica into a center of e-business and the IT hub of the Caribbean.  To make this so, the telecommunications industry has come to the forefront.  Jamaica was one of the first CARICOM countries to move systematically towards breaking up the  monopolization  of its telecommunications industry.

Currently, there is a single provider of telecommunication services Telecommunication of Jamaica Ltd.  The company is largely privately owed 79% by Cable & Wireless Limited, and the remainder of 21% by the public.  Since 1992 Telecommunication of Jamaica has operated a fully digital telecommunication network.  Presently the number of telephone mainlines per 1000 persons are 199.  The cell phone industry is not far behind there are 142 per 1000 persons.   There are many expansion-taking places in the provision of telecom services, with the company projecting 55,000 new lines per year.  However, telephone usage costs have also increased considerable.  (20)

Basic Statistics (2000)

Daily Newspaper per 1000 persons                                          62

Radios per 1000 persons                                                           784

TV sets per 1000 persons                                                          194

Telephone Mainlines per 1000 persons                                    199

Cell Phones Subscribers per 1000 persons                               142  (17)

Liberlization

In April of 1997 Jamaica agreed to open their telecommunications market to foreign investments and competition.  This action occurred in alliance with a group of World Trade Organization member states that account for more than 90 percent of global telecom revenues.  The strength of the agreement is that it will open world markets, allow foreign direct investment in domestic telephone service providers, and establish standards for deregulation.  The Jamaican cabinet formally accepted the WTO policy document concerning deregulation of telecommunications on July 27, 1998.  They stated that the purpose of the policy is to:

§      Allow competition in telecommunication services.

§      Ensure fair and non-discriminatory interconnection.

§      Redefine universal services and create implementation framework.

Jamaica entered a phase’s approach to deregulation, and is scheduled to implement full deregulation of telecommunications in March 2003.  (8)

Statistics on Prices for Cable and Wireless Telephone Services under the Price Cap Plan (2001-present)

Service Description                                                                                 New

Access

Business Exchange Lines Rental                                                            $740

Residential Exchange Lines Rental                                                        $310

Low User Exchange Lines Rental                                                          $140

Business Exchange Lines Installation                                                    $940

Residential Exchange Lines Installation                                                $660

National Calls

Intra-Parish Calls (Standard) off peak                                                   $0.21

Intra-Parish Calls (Standard) week end                                                 $0.19

Inter-Parish Calls (Standard) peak                                                         $0.96

Inter-Parish Calls (Standard) off peak                                                    $0.71

Inter-Parish Calls (Standard) week end                                                  $0.53

Intra-Parish Calls (Low User) peak                                                        $0.51

Intra-Parish Calls (Low User) off peak                                                   $0.44

Intra-Parish Calls (Low User) week end                                                 $0.35

Inter-Parish Calls (toll free) week end                                                    $0.81

Data Services

ISDN BRI Rental                                                                                    $4,370

ISDN PRI Rental                                                                                    $32,082

ISDN BRI Installation                                                                              $5,254

National  Intra-parish Leased Circuits 1.2 K rental                                $8,330

National  Intra-parish Leased Circuits 2.4 K rental                                $8,330

International Leased line 2048- N. America rental                                 $994,929

Frame Relay 64kb Port rental                                                                  $3,985

Frame Relay 128kb Port rental                                                                $5,255

Frame Relay 256kb Port rental                                                                $8,482  (3)

Phase I of the liberalization process, which took effect on March 1, 2000

§      Opened the market to competition in wireless cellular services.

§      Opened the market for the provision of customer equipment.

§      Allowed companies with Single Entity Free Zone status to provide their own telecommunication services.

§      Opened the market to the resale of data, international voice and Internet access.

Phase II commenced on September 1, 2001 and covered

§      Competition in domestic facilities and services.

§      Cable TV providers (STVOs) being allowed to become Internet Service Providers (ISP).

Phase III will commence on March 1, 2003

All telecommunications facilities open to competition, including internal voice and data services. (8)

Step by step Jamaica is implementing each phase of their telecommunication process.  So far phase I of the liberation process did take affect on March 1, 2000.  With the help of Cable & Wireless leasing lines to other companies, the market has been opened.  Phase II of the policy has also been also been  put  into effect.  Phase III, I am not sure that it is fully functional at the moment since it hasn’t been published as of yet.

Telecommunications Policy

Jamaica will utilize telecommunications industry development as an engine of growth that will contribute to the achievement of sustained revitalization of the Jamaican economy.  The Government’s main policy goals are:

§      extension of the wired and wireless networks to encompass the entire geographical and demographic spread of the country.

§      ensuring infrastructure build out and service provision on the basis of profitability of the operating companies, but also bearing in mind the need for universal access to disadvantaged sectors, including services to remote (and uneconomic) areas, the disabled and the elderly;

§      availabiltiy of high quality services across a range of telecommunications providers;

§      access by the business and public sectors to the best available innovations in telecommunications facilities and services at cost that are internationally competitive, so as to stimulate economic and social development through growth of the industry,

§      ensuring appropriate domestic and international connectivity arrangements that are seamless, efficient and cost competitive

§      fostering a legal and regulatory environment that is responsive accountable and socially sensitive to the needs of the public, to investors and to emerging technologies.

Liberalization of the local telecommunications market is one means to achieve these goals.  Jamaica will introduce competition in the telecommunications market in order to:

§      foster business facilitation and encourage new entrants and value added services;

§      promote greater use of information and communication technologies (ICT) in the Public Service, non-government and other organizations and private sector businesses

§      facilitate greater efficiency in industry and commerce;

§      provide wider consumer choice.

This Telecommunications Policy will be applied on the basis of the primary fundamental principles: Competition, Universal Access, and Neutrality on Technology, Promotion of ICT.

Competition policy is designed for the introduction of competition into the local telecommunications market for the provision of fixed line, cable; mobile and other wireless services. 

Universal Access policy addresses three basic issues: Type of service, Access to such service and, affordability of services.

These distinctions also suggest in terms of consumer interests that a universal service policy ought to consider the situation of:

§      individuals who can afford to pay the cost, but lack access

§      those who cannot afford to pay the cost and lack access

§      those who have access but cannot afford to pay the cost

§      those who do not have access for reasons of special needs (disability)

The main elements of universal access include:

§      physical build out of the network to cover  unserved/ underserved areas in both rural (and remote) and urban (and inner city) areas

§      ability to utilize the network (knowledge/ expertise to use the network effectively)

§      affordability of the network

§      access to the emergency services, e.g. Fire Brigade, Police, Air Sea Rescue etc. (i.e. toll-free calls)

§      access to the network by persons of disabilities

§      access to public telephones and call boxes (including service delivery via pre-paid card, credit card and coin telephones).  (9)

Neutrality on Technology policy will not seek to prescribe the types of technology that can be used to provide telecommunications services in Jamaica.  This is aimed at encouraging the introduction of new technologies and services, as these can become available locally to consumers.  This policy is also meant to be technology neutral in Phase 3 with regard to the non-separation of voice and data services in terms of meeting the social objectives of any telecommunications service.

Promotion of ICT policy promotes the development and use of ICT to meet all needs of the people of Jamaica, specifically to enhance social objectives in education, health and national security.

 Telecommunication Infrastructure

Jamaica boasts the most sophisticated telecommunications system in the Caribbean, with a 100 percent network.  In addition, the Jamaica Digiport (a joint venture between AT&T, Cable and Wireless) has significantly enhanced the country’s ability to offer and even greater range of telecommunication services.  With facilities that offer this speed data transmission at rates between 9.6 kilobits and 1.5 megabits per second, Jamaica Digiport advanced telecommunications technology equals anything available in the industrialized world.

In addition to a digital network, Cable & Wireless Jamaica provides:

A submarine fiber-optic transmission ring around the island

A data-centric network with value-added bandwidth services

Access to the latest global products and services through its aggregated IP node the N3 node that’s has access to the Cable & Wireless network.  (24)

Licensing of Telecommunications Services - THE PROCESS

Phase I commenced with the passage of the Act on March 1, 2000 and lasts for 18 months thereafter. During Phase 1 the following markets have been open to competition:-

n         Domestic mobile services;

n         Data services, such as internet service provision, using Cable & Wireless Jamaica's ("CWJ") facilities;

n         Provision of single line and multi-line customer premises equipment

n         The wholesaling of CWJ's international switched voice minutes.

n         Free trade zone carrier and service provider licenses

Phase II commences on September 1, 2001 and lasts for eighteen months. During this Phase, the Minister of Industry, Commerce & Technology, may grant licenses for the following additional facilities and services:-

n         Domestic voice facilities and services, e.g. wireless in the local loop and wired services including the resale of CWJ's switched domestic voice minutes; and

n         Internet accesses over facilities of subscriber television (STV) operators.

Phase III commences three years after the passage of the Act. During this Phase, all markets may be open to competition including voice and data facilities. The Office of Utilities Regulation ("OUR") performs an administrative and advisory role in the licensing process under the Act. It is the Minister of Industry, Commerce and Technology ("the Minister") which issues the licenses upon the recommendations of the OUR. Administration of the licensing process The responsibility for administering the licensing process is shared between the OUR, whose role is primarily administrative and the Ministry of Industry, Commerce, & Technology, which issues telecommunications licenses. The process is as follows:

1.    The Minister issues directions in writing to the OUR specifying the categories and number of licenses to be issued.

2.    Upon receipt of the direction, the OUR publishes a notice in the Sunday edition of a daily newspaper, inviting applications for the licenses.

3.    The OUR evaluates the applications received, on the basis that they are complete and the applicants are deemed fit and proper persons to hold a license under the law.

4.    The OUR then recommends to the Minister, the licenses to be issued by his Ministry.  (9)