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Seeking to step above the fray of the cellular phone wars, Cable & Wireless (Jamaica) has set its sights on delivering to Jamaicans another, equally addictive, telecommunications service - broadband.
Broadband is the term for the evolving digital technology that provides consumers with integrated access to voice, high-speed data, video on demand services and interactive delivery services. "Broadband is the technology of the future," said Magnus Johansson, the company's vice-president of broadband and Internet services. To back up that statement, Cable & Wireless is to spend US$6.4 million to get 400,000 Jamaican households on to the Internet with the lure of lower monthly fees, low cost of entry and value-added services that will drive C&WJ's revenue. At a briefing on Monday, C&WJ executives gave Wednesday Business an exclusive look at the broadband strategy. For 2005, the target is to reach 50,000 households with 13,000 already subscribed to the service. Over the next three years, the company is looking to be in 400,000 households. SIMPLE GAME PLAN Additionally, C&WJ is targeting schools, businesses, and institutions such as the judiciary. In fact, C&WJ's game plan is very simple. First, whet consumers and businesses appetite for broadband by lowering the barrier to entry then earn revenue by offering value-added services. In order to facilitate Jamaicans who do not have a personal computer, C&WJ has imported the personal Internet communication (PIC) device. It comes with a monitor, mouse, keyboard, modem and central processing unit. The PIC will allow users to download information from the Internet, but as a closed network, viruses cannot execute, thus preventing system crashes. "The PIC has all the benefits of the online experience. Plus consumers will have three months to pay for equipment," Mr. Johansson said. Recognising that the monthly access fee is a deterrent for consumers, Errol K. Miller, head of C&W corporate communications says that an announcement next week will detail lower prices. Mr. Johansson adds that C&WJ intends to offer combo packages with discount for customers who get their landline, mobile and broadband from the company. "No other competitor in Jamaica can offer that." It is noted by company executives that the current cost of broadband was dictated by the cost to provide the service. Mr. Johansson adds, "Our parent company took a decision to do bulk purchases of the equipment needed for broadband services for all its world-wide subsidiaries. This lower cost is now being passed on to subscribers." With a lower cost of entry and ownership, C&WJ then intends to saturate the island with broadband. Mr. Johansson says, "The metropolitan areas of Jamaica are the low-hanging fruit, but we are going to the rural areas where we have telephone exchanges." According to C&WJ, the beauty of their island-wide broadband rollout is that the same infrastructure that was used to lay landlines can be reused. And once the broadband market has been established, the company will then seek to mine the revenue from the value-added services. Mr. Johansson explained. "We plan to offer on our own or with partners several value-added services such as parental control for Internet usage. We also can use broadband for home security. This would entail setting up wireless cameras that stream live video over the Internet. In fact, you can programme the system to record when sound or motion takes place. The security system then alerts the security company and sends a text message to your cell phone." The executive is confident that broadband will be a reliable source of revenue for the company for two reasons. One, the churn rate of customers who switch from telephone dial-up Internet service to broadband is low. "Once you go broadband you never go back." And secondly, the Internet is a fact of modern life. "In the end, global use of broadband for communication is coming - it won't be either, or," he added. http://www.jamaica-gleaner.com/gleaner/20050701/business/business1.html |