Third telecoms service provider a possibility, says Vaz
MINISTER of Science, Energy and Technology Daryl Vaz says the granting of a third fibre optic licence is a possibility after concerns were raised by some members of the House of Representatives on Tuesday that the quality of service being provided by the country’s two telecoms companies is “unacceptable”.
Former portfolio minister, Phillip Paulwell, and Opposition spokesman on finance, Julian Robinson, revisited the issue following the minister’s presentation on plans for a US$237-million National Broadband Initiative.
Vaz made the point that, for the initiative, a minimum standard of service will be required for consumers from the telecoms service providers, which is an attempt to provide universal broadband access in the country.
“Right now it is unacceptable in many cases,” said Vaz.
On Tuesday, Robinson said that the country is lagging behind the region in terms of broadband penetration and cost of broadband services, which, he said, is higher than regional competitors.
“The main factor for this is that we have a duopoly in our market, and there is a need for competition. You have said it. The quality of the service is poor, and it’s poor because the investments that are required to maintain the network have not been made.
“So, you have two players who dominate pretty much 100 per of the market without any real incentive to improve the quality of service. So what are the specific plans to introduce competition in the broadband?” Robinson questioned in response to the minister’s presentation.
Vaz said, in due course, a request for proposal (RFP) for spectra will be introduced to roll out more broadband. He said that the decision has been approved by Cabinet and the Spectrum Management Authority is putting together the RFP.
“I’ve asked them to try and see how they can shorten the timelines, because, obviously, that is what is required now, and, of course, as we know, competition drives efficiency and rates,” he said.
Paulwell, at the same time, questioned what will be done with regards to the companies’ “failure to deliver” on licence requirements.
He said in 2015, licences were granted to “the two major players” to facilitate the use of 4G LTE.
“I’m trying since 2015 to find 4G LTE on my phone and it has not happened. The licence that they have can be revoked if they do not provide 95 per cent of the country with the technology within five years. So I believe that you have some leverage now to insist that the providers do provide the broadband services that they are mandated to do in their licence, and, perhaps, the OUR [Office of Utilities Regulation] can assist with that,” said Paulwell.
He urged Vaz to consider another fibre optic licence “to generate even greater competition”.
“It is indeed competition that is needed to get the services improved and the prices down,” he stressed, adding that the market has reached a stage where it can accommodate a third player.
In response, the minister said he is “more than prepared” to look at a third player if it will help to improve the quality of broadband service to Jamaicans.
“I look forward to having some discussions with you, in terms of your own ideas, as I journey on this learning curve, but just to say definitively that what you have mentioned I will take into account, and I will give you some responses when I have some answers,” said Vaz.