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AT&T, THE telecommunications giant whose pedigree dates back to the invention of the telephone by Alexander Graham Bell in 1875, is to be the fourth cellular provider in Jamaica, paying $360 million for the privilege of becoming a member of the club which will now comprise Digicel, Cable and Wireless and Oceanic Digicel (originally Centennial).
This was announced by Phillip Paulwell, Minister of Commerce, Science and Technology who, during two years of negotiations did not blink and was eventually able to get the fee he originally wanted as compared with AT&T's opening offer of $50 million. He has every right to be pleased with his success and Dr. Davies, Minister of Finance, will, we feel sure, also welcome the contribution to his coffers at a time when the nation's cash flow is starved for every cent it can get.
The cellular market in Jamaica is currently dominated by Digicel with some one million subscribers and Cable and Wireless with about 900,000 subscribers. Oceanic Digital is yet to make any significant inroads. This means that of a population of 2,700,000 people 1,450,000 or 54 per cent already own cellular phones. Assuming a saturation point of 75 per cent of total population, high even by world standards, the market would have room to grow by about another 575,000 subscribers.
AT&T, recently taken over by Cingular, the largest cellular company in the world, now has the resources to attack the Jamaican market aggressively and it is possible that some of the existing players will lose market share. At the licensing signing ceremony, AT&T pledged to spend one billion Jamaican dollars in its first year of operation. The bottom line for consumers is that this competition will result in better service and, perhaps, lower rates. AT&T, as an international provider, will also be able to accommodate tourists visiting the island whose roaming charges will allow them to make cell calls in the island.
When the Bell system, the original parent company of AT&T, became too big a monopoly in America, the government forced it to split into eight separate competing entities. Something similar was done by the Jamaican government when it negotiated a partial end to the monopoly enjoyed for many years by Cable & Wireless. Overall, government's handling of selling cellular licences has been tackled with skill and determination and we commend all those concerned.
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