AT&T comes to Ja US giant gets fourth cellular licence

[Xenocrates]

The smaller the market, the fewer people it can share for. You will see the same phenomenon demonstrated in Cayman when Digicel establishes itself. Less than half of Jamaica's population has a cellphone. This has been the case for the last 2 years. The S-Curve of market acquisition and returns is now in its levelling off phase. So we are not likely to see a significant jump in the number of subscribers to cell phone service for another contendor. That's when you know a market has been saturated.

We have more people with broadband needs than cellphone needs. It's that simple. The Broadband demand supply curve is still in it's growth phase. The curve for broadband demand now looks like the letter 'J'. It's still growing.

The curve for cellular demand is already an 'S'. No more significant growth. Even with a new contendor. What you'll have is just people 'trying' out the new service. Most of those people are technology enthusiasts and people with cash to burn. That demographic is not indicative of the country's general populous.

It's just like now you have a surplus of people building computers for a home business. There is no more growth in that sector. It is oversaturated.

Jamaica's economy needs NEW growth in DIFFERENT sectors, or introduction of new ones. Why are we overdeveloping a sector which has not shown significant growth in the last year?

It's time to invest in a NEW market. Smart businesses that plunge into a new market while it's still in the growing phase are more likely to be dominant in that market. The more new markets are developed in Jamaica, the better our economy will be in the long run, because there will be more avenues for growth. The economy is in a bad state now because of stagnation and mis-management. We can't fix the mis-management until the next elections. So we might as well fix the growth factor while we can.

It's a simple and well established law of economics Xphat. You get what I'm saying?

[Nastrodamus]

Thanks for the support Xeno...


Xphat, look at it this way which is more profitable, selling a couple thousand phones, of which you have to provide top of the line service (and that cost money), or completely dominate a part of the market?

The only reason people still use cable and wireless as a landline is simply because they have no choice. There is no one there forcing them to provide better service or better prices.

The ironic thing is that C & W is still laying off people by the lots. So the question is asked where does the money go?

Well they are a private company so I guess its none of my business.

[xphat]

I really dont disagree with you guys on the matter of the saturation of the markets... but all i was doing was giving another example of an even further saturated market than ours

I agree with you guys fully.. The way i see it... All the ISP's now are very picky with what they persue.. no-one wants to make a move and everyone wants to play the wait game...

Ahh well...