Broadband services elude some cable operators
SOME local cable providers say that although they would like to provide subscribers with a range of broadband telecommunications services, they simply do not have the capital to upgrade and expand their operations.
Broadband technology essentially involves large capacity networks able to simultaneously carry several services, such as high quality data, graphics, voice and video.
According to Wesley Anderson and Chris Yapp, representatives from the Jamaica Association of Community Cable Operators (JACCO) — the umbrella body for cable operators — it would take approximately US$30 million and 12 months “to build the industry to an acceptable level”.
The representatives were responding to calls by Technology Minister Phillip Paulwell for cable operators to make use of the range of broadband services that will become available in March this year when the telecommunications sector will have opened to greater competition.
Paulwell, who issued the call earlier this week at a seminar hosted by the Broadcasting Commission, JAMPRO and JACCO, told the operators that phase three of the telecommunications liberalisation process would bring full competition in all areas of telecommunications facilities and services.
“The expected impact is that a number of opportunities will become available to the over 40 members of the Subscriber Television Industry (STV), including the delivery of broadband services,” Paulwell said.
With the updated broadband technology in place, the cable operators would be able to offer services such as :
* telephony, both local and international;
* high speed Internet access;
* data transmission and networking services;
*security surveillance;
*remote metre reading for utilities;
* islandwide access to distribute special events;
* video on demand;
* Internet gaming;
* teleconferencing;
* telecommuting; and
* distance education and much more.
Anderson and Yapp, who gave a dual presentation on behalf of JACCO, stressed that money was a major “constraint” for the industry at this point in time.
“For example, the smallest telecommunication switch today is far too expensive for any one operator to purchase and, the capacity of the switch will be grossly underutilised,” Anderson said.
The representatives said the operators would also need help in addressing some of the major issues facing them.
Some of the issues were:
* all 45 operators are not linked so each has to bear the cost of a highly capital intensive business;
* the areas covered are not generating enough revenue to both build and capitalise on new ventures;
* there is a generalised lack of funding available due to the specialised nature of the business;
* there is a lack of government incentives to the cable industry and;
* the cost of the telecoms equipment is enormous.
Dr Elaine Wallace, consultant on information and communication technology, who also addressed the seminar, agreed that the cost to operators would be significant.
“For this transition to be successful,” she said, “substantial technological upgrading to achieve standards that permit full advantage of what the technology can offer in quality and variety in services must be undertaken at large capital outlays.
“This will mean that not every cable operator in the market today may wish or be able to offer broadband services,” she remarked adding that perhaps only an estimated 20 per cent of cable subscribers, and mostly those in the urban areas would be interested in the new services.
But Paulwell suggested that the operators consider forging strategic alliances through JACCO as one way of overcoming the economic hurdle.
“The players in the sector cannot exploit the opportunities that are emerging in a piecemeal and fragmented manner,” Paulwell said.
“Unity and fixity of purpose must be the way forward and time is of the essence,” the minister stressed.
The cable industry’s inherent two way capability would enable it to deliver a broad range of services to the personal computer and television.