Megafone's service is just the latest innovation in a local telecommunications market that has never been more vibrant as price competition heats up and new entrants expand the range of product and services.

Phone prices and calling rates have fallen drastically.  Users now have the option of unlimited calls overseas at one flat monthly fee.

With the introduction of VoIP, the routing of voice conversations over the Internet using broadband connection or through any other IP-based network, small business owners and Jamaicans with family and friends overseas could call and stay connected without watching minutes and fees.

Megafone, by comparison, is offering a cellular phone that makes outbound international calls to specific countries at a fixed monthly fee.  No internet connection is required and it is a mobile service.

But not much is known about Megafone.  Telecoms operators said they knew little of the new entrant.

The company's manager, a Mr Tucker, did not return calls for comment and his staff were unwilling to speak to the press.

"I don't know about that company," said Garfield Bolt, ISP manager at Anbell Telecom, one of the most popular VoIP providers locally.

Bolt attempted, however, to dismiss his new competitor.

Network issues

"Not relying on the Internet isn't a big deal, the service can go down.  No matter how they plan on pitching it to you, there is the potential of network issues," he said.  "It is a big market and there are many different products available that are distinguished by their features.  You need to look at your needs and let your needs determine what you buy into."

Subscription to Anbell's VoIP service, called NetVoice, will cost $5,535.45 under its basic plan, which includes setup charges for ADSL.  The user pays monthly fees thereafter of $2,285.42 for the broadband service and $2009.20 for Net Voice - for a total fee of $4,294.62 each month.

The option allows calls to eight countries, including the United States, Canada, United Kingdom and Singapore.

Magafone is currently running a "Christmas special until supplies last," said a sales representative at the company.

"We have cut the cost for initial phone cost to $1,500."

The original cost for Megafone's cellphone was $4,424 plus $900 for the the first month of calls.

However, to add the $900 to their account, customers have to buy $1,000 of credit (which amounts to $1,200 with GCT).

Andrea Brown uses both services, saying they both satisfy her needs.

"I got the VoIP phone over a year ago and I was happy with the cost and fees, but I could only use it when I was at home, which is normally only in the evening and nights," she said.

Brown says she lives in the Red Hills area where there is a problem picking up cellphone signals.  The VoIP comes in handy then, she said.  When she is on the road during the days, she uses her Megafone cellular.

"Another plus for our VoIP connection is the toll- free service.  When you are choosing your inbound number you can select a toll free number giving you up to 100 minutes of free inbound calls," said Bolt.

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