The push for tighter regulation follows the entry of big players like Flow Communications and, latterly, Digicel, which technology sources say is developing a strategy to match low-cost Flow.

The state's regulatory arm responsible for spectrum allocation in Jamaica, the Spectrum Management Authority (SMA), had planned to start devising a regulatory framework with the issuance of the new licence, and had already delayed the process by a month in response to interested parties' request for an extension of the two month tender period.

"Having achieved universal access of voice telephony, the Government of Jamaica is now focused on the deployment of broadband access," said the document made public to potential bidders.

Main objective

"The main objective of this licensing exercise is to create the regulatory framework which will facilitate the deployment of broadband services to the public within a competitive environ-ment."

This was apparently in response to what the agency called a "heightened level of interest with respect to the use of currently available technology to deploy wireless access systems."

Technology minister, Phillip Paulwell had noted in his contribution to the budget sectoral debate in June this year, that there were a number of companies which were interested in offering broadband services in the 3.5 GigaHertz (GHz) band.

The 3.5 Ghz band refers to the range of frequencies from 3400 MegaHertz (MHz) to 3700 Mhz.

Typically, manufacturers of radio systems within this band utilise 3400-3500 Mhz for uplinks and 3500-3600 Mhz for downlinks.

For this offer, a cap of 2x25 Mhz (50 Mhz in all) has been placed on the maximum amount of spectrum to be licensed to any one entity, which can apply for any one of a islandwide, "metropolitan areas only" or "rural areas" only licence.

Metropolitan area includes Kingston, St. Andrew and St. Catherine, as well as St. Ann and St. James, while rural refers to areas outside of the metropolitan area.

Earlier this year, Digicel was awarded its licence to offer broadband services in the 3.5 Ghz band, for which the mobile provider will pay $17.5 million annually for spectrum licence and regulatory fees.

Digicel had announced in April that it would spend $2 billion over twelve months to upgrade its network and facilitate the rolling out of wireless service.

According to the SMA, Cable and Wireless and wireless fixed line operator, Gotel, utilise the frequency band to offer services locally.

Digicel says it is still in its testing stage.

The last broadband auction opened June 20 with an initial deadline for July 19, but the government agency extended the deadline to accommodate interested parties.

"We had received written request for an extension," SMA managing director, Ernest W Smith told the Financial Gleaner.  "We extended it by four weeks."

But up to last Friday, August 18, the new closing date, no bids were received within the deadline.

However, one bid came in after the 2:00 p.m. close-off time.  Now the SMA is awaiting instructions from the Contractor General on how to proceed, Smith said.

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