Former Minister defends granting FLOW all-island license

[Lazie]

Former Information Minister Donald Buchanan is defending his decision to grant telecommunications firm FLOW an all-island license.

Responding to concerns that FLOW's dominant position in the cable industry will remove competition, Mr. Buchanan says this is unlikely to occur.

He says the existing regime allows for other entrants to be granted a similar license.

"I actually approved the license for FLOW and any other company which wishes to apply for an all island license is free to do so that there isn't any question of any monopoly. The fact is that there is a need to ensure that all of Jamaica receives the sort of service that is provided like a company like FLOW," said Mr. Buchanan.

He told RJR News that FLOW was granted the license after showing its ability to provide the entire island with cable service.

"And FLOW has a programme to ensure that all of Jamaica is provided with the services which their license provides for over the next two years otherwise we would have left large chunks of Jamaica without any service for an interminable period of time," he continued.

[Jawge]

and that means all who have cable will
also have Internet access. I like that

[Lazie]

Broadcasting Commission Watching Cable Sector Carefully

The Broadcasting Commission is seeking to allay concerns about an approaching monopoly in the cable sector.


"It is not our view that we are at that position as yet, but the Commission is taking very careful note of what is unfolding in the sector and is guiding and also making recommendations in respect to how Jamaica can continue to have a multi-player market and competition in this very important sector," Chairman of the Broadcasting Commission, Dr. Hopeton Dunn said recently at the weekly JIS 'Think Tank'.
This comes against the background of telecommunication juggernaut, FLOW, purchasing several cable outfits as part of plans to lock up the local cable market. The most recent acquisition is Entertainment Systems, one of the larger cable entities in the Corporate Area, and this marks the eighth of such acquisitions.
The Chairman further assured that one of the recommendations currently being contemplated is an additional islandwide broadcaster, utilizing wireless technology which would provide consumers with an option, in addition to the option provided by wired providers as well as those at the national and those at the zonal and smaller levels.
In addition, Dr. Dunn insisted that the Commission would make sure that many of the existing players, especially the longstanding cable companies that pioneered the sector, are given opportunities to expand into other zones to grow their operations in line with their own capacities and competences, even as it [Commission] monitors and manages the whole landscape of new players.
"It is important to recognize that we have to keep vigilant on the competitive side to make sure that we have national competition in the sector and we will not resign from those responsibilities," he stated.
However, the Chairman, while outlining the position of the Commission, did acknowledge that when there is a period of transition, as is occurring in the cable landscape, there would invariably be some type of concern and apprehension.
"It is true that we have a major new player in the market and that there has been acquisitions of existing players in some regions of the country and as a result, there is not the kind of competitive framework which was intended by the Commission," he said.
The Broadcasting Commission is a statutory body established by the Broadcasting and Radio Re-Diffusion Amendment Act of 1986.

[Mosiah]

not necessarily. it's a choice.

[Jawge]

yeah well the option is there and I
think many will jump at it.

[Mosiah]

unfortunately, many won't. any wonder why most of us on this site are not based in jamaica? internet connectivity as a nation is woefully low and it's not because there was never any access.

[Jawge]

arite mi undastan it cyaan nyam

Truss mi though cable vision ah do well setting up internet access ah yaad. One area where flow could beat them is for the deep rural customers. I think C&W has this niche locked with wireless phones.

Let's see how it pans out.

[Mosiah]

Cablevision deh a Jamaica?

When it comes to deep rural, Digicel has it locked with their mobile phones.

C&W must go dead a bush. My Internet has been intermittent for 5 months and dem cyaan fix it. As Flow seh dem ready, mi a kick C&W to di curb. Cyaan wait!

[Lazie]

FLOW’s momentum could be slowed by government intervention

Telecommunications company FLOW which has been in an aggressive expansion mode could be stopped in tracks in the wake of questions surrounding one of its cable company acquisitions.

Information Minister Olivia "Babsy" Grange has intervened after concerns were raised about FLOW's purchase of a Corporate Area cable company.

In a statement issued Monday, Miss Grange said she has been informed thatEntertainment Systems Limited, suddenly ceased operations and its cable business was acquired by FLOW.

The Information Minister says thousands of customers were affected by the change and were given no notice by Entertainment Systems that it was going out of business.

In light of public concern, Miss Grange contacted the Broadcasting Commission which is responsible for the cable industry.

She says she was informed that no request was made for the Commission to approve the transaction.

Miss Grange says the matter is being addressed and the Commission will provide details to the public later this week.

In the meantime, there is growing uproar in the cable industry over the monopoly being created from FLOW's acquisition of major cable companies.

There are also complaints from customers whose cable providers have been bought out by FLOW that they are being asked to pay increased subscription fees.

The Jamaica Association of Community Cable Operators (JACCO) which is the lobby group for the industry says most of its members have been taken over by FLOW.

"Association has been tremendously weakened. Last week we heard that Entertainment had sold out, but the meeting we had last week Friday Entertainment was there and said nothing and as far as I have been told 18 to 20 companies are lined up to be sold," said Chairman of the Association, Colin Innis.

And Chief Executive Officer of Logic One, Paula Francis, believes FLOW's monopolistic position will remove competition from the market.

"It is a real concern because even though FLOW has an islandwide license it cannot be allowed to buy companies. It has a license to run cable in all the zones throughout Jamaica whereas we are limited to the zones which we have a license for," said Ms. Francis.

She says her company will resist any overtures from FLOW for a buyout deal.

[Jawge]

Please ah waan see she stop flow.
Big joke dat LOL wooeeeeeeeeeee

[Mosiah]

She says they will resist. Resistance suggests the possibility of failure to me.

[Jawge]

She knows resistance is futile. I think
she will be told that " don't let the title get to you okay". Funny, this
is comedy

[Muadib]

Have to thank Flow for clearing the way...

Heh, heh.

[Jawge]

Gwaan pat yuhself pan di back.
Time is the master.

[Muadib]

Exactly.. nothing before its time..

Mi hear seh Bruce is a master chess player.. all 9 moves ahead him a think.. mi not even sorry fi di termite posse..