Jamaica’s
telecommunications sector earned some $50 billion in revenues last
year with $8 billion of that amount going to the Government’s
coffers. Minister of Commerce, Science and Technology, Phillip Paulwell
made the disclosure while speaking in the 2004/05 Sectoral Debate
in Gordon House on Wednesday (May 12).
He said that the success of the sector was seen in the country’s
tele-density (the number of phones per hundred inhabitants), which,
he said, was an important indicator of development.
Minister Paulwell noted that in 2000, the tele-density was 30 per
cent but that by the end of 2003 it had increased dramatically to
80 per cent. “This has resulted in Jamaica being ranked by the
International Telecommunications Union’s Digital Access Index
(DAI) (as being) among the countries in the world in the upper Access
Index Category. In this region, we are above Mexico, Brazil, Venezuela
and Costa Rica,” he said.
The Minister said that while there have been some achievements there
were also challenges. One such challenge, he cited, was in the area
of inter-connection and the issue of settlement rates with the United
States of America.
“We have arrived at the delicate balance between raising settlement
rates high enough to benefit the Jamaican economy while lowering termination
rates enough to allow sufficient margins to stimulate sustainable
investment in the telecoms industry,” he said.
Another
challenge, he said was the inability to deliver broadband or high-speed
Internet service at affordable prices to the Jamaican consumer.
At present, he said, that there were only 95,000 Internet accounts,
which he said was despite a 2003 Internet market study, which showed
that awareness of the Internet among Jamaicans over 15 years old
was universal and that 80 per cent of non-users were interested
in becoming users.
Minister Paulwell said, “cable operators have not delivered
on their promise of high speed Internet through cable modems, and
the ADSL access provided by Cable and Wireless was approximately
US$93 per month”, which he said was “still too expensive”.
Continuing, he said: “The limiting factor, really, is still
the monopoly on submarine optical fibre connecting Jamaica to the
rest of the world. We recognize that one of the basic inputs for
affordable Internet access is competitive submarine fibre optic
connectivity to the regional Internet hubs.”
He said that a key part of the efforts by the Government to bring
access to all Jamaicans was by using the CDMA technology on the
450MHz Band, which he said had shown that capacity to provide broadband
capabilities would allow deployment in even the most remote areas
of Jamaica.
Minister Paulwell said the Government was giving consideration to
the terms by which the 450MHz Band could be made available to the
telecommunications industry in order to ensure that this additional
resource supports the Government’s policy objective for accelerated
Internet access.
He
informed that Spectrum Management Authority has been given the responsibility
to prepare recommendations.
Turning to the Universal Voice Service access, he said that this
had been substantially met with 1.6 million cellular users and 500,000
landlines with some 2.1 million active voice lines, a growth of
300,000 over last year.
He noted however, that there were still “small number of difficult
pockets where residents are without service”.
This, he said, would be addressed with pay phones and other special
facilities. “This will ensure that every Jamaican has access
to emergency telephone service, based upon the recommendations of
the Office of Utilities Regulation (OUR) for the implementation
of universal access,” he said.
Minister Paulwell said one of the proposals to encourage major telecoms
providers to buy into the vision of creating a knowledge-based society
was through a major e-learning project. The implementation cost,
he said, should cost $4.5 billion over three years. |