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Digicel's 4G: A huge technology wave for J'cans
BY ALICIA ROACHE Sunday Finance reporter roachea@jamaicaobserver.com
Sunday, August 22, 2010
SOME changes, though profound, take place quietly. When Digicel launched its mobile phone service in Jamaica over nine years ago, the mass penetration was unexpected but very profound. The company had projected 100,000 customers in one year. They achieved that target in 100 days.
On Friday, Digicel introduced another offering that could, by its assessment, change the Jamaican landscape as radically as it did with mobile phones. The company became part of a select few firms globally to launch fourth generation (4G) technology for wireless Internet, with that for mobile phones coming in the near future.
Digicel bosses try out the latest innovation offered by the company. From left is Mark Linehan, CEO; Jim Hogan, commercial director; and Donovan White, head of marketing at Digicel. Consumers can get a first-hand look at the 4G broadband service at the Digicel Consumer Electronics show this weekend at the Wyndham Hotel in Kingston. (Photos: Bryan Cummings)
Digicel’s netbook, which is sold separately, can be used to access the wireless 4G service. Customers can get the netbook through a range of financing packages available through the National Commercial Bank, some credit unions and Courts Jamaica.
With this service, Digicel customers who choose either prepaid or postpaid packages can access super-fast Internet through a 4G modem to their computers or laptop. Customers can choose among the seven, 14 and 30-day plans, or a monthly postpaid plan. Customers who register for the 14 or 30-day plans will get double usage time up to September 30. The service is available across all parishes, covering 60 per cent of the population and 200 communities with further roll-out planned.
The opportunity exists because while up to 64 per cent of people have access to internet in Jamaica, only about four per cent of the population has access to the Internet in their homes or on the go because of the low penetration of broadband. 4G broadband will open up endless possibilities to these people, said Digicel CEO Mark Linehan at the launch of the new service held at the Spanish Court Hotel in Kingston.
More particularly, it could increase the educational and employment opportunities for Jamaicans and improve GDP growth, thereby facilitating the development of a better economy. However, perhaps the most important component is its possible effect on businesses and productivity.
"The research has shown that for every 10 per cent increase in broadband, that increases GDP per capita by 0.9 per cent to 1.5 per cent," said Linehan. "In time, the same way mobile phone penetration increased the efficiency and productivity of businesses and people, this will have a similar effect," he told Sunday Finance. "If you look at the broadband penetration at the moment, there are businesses in Jamaica, across Jamaica that do not have access to the Internet and that's slowing their potential down. But this will release their potential and open up huge opportunities to them," he said.
Hopeton Dunn, director of the Telecommunications Policy and Management (TPM) programme at the Mona School of Business, UWI, believes that the introduction of Digicel's 4G WiMax technology could have a 'catalytic effect' on the use of the Internet in many facets of business, education and everyday life.
"These developments are very significant and will definitely contribute to the further development and expansion of the ICT industry in Jamaica," said Dunn.
The ICT industry is indeed a target for further development, according to Linehan, who noted that with the introduction of 4G, there would be more development potential for knowledge workers and software developers.
"It's gonna give young, talented minds an opportunity to dabble in software development and applications development, which is one huge industry that is coming our way -- the development and creation of applications for smartphones. So this will give young, budding entrepreneurs access to information, access to suppliers, access to potential clients. It's going to be great," he said. "It is a kind of mass market/business product. It's going to be big on education. Its going to help education, it's going to help entertainment and it's going to help businesses, and obviously the economy."
Unlike other Internet services that offer fast speeds, 4G WiMax from Digicel requires no lines or expensive infrastructure build-out. Nor will customers be tied to a desk, as with a modem and a netbook; WiMax can be accessed in the car while on the go.
"Obviously for people on the move and people around the country who have had to use the 3G solution, this is now giving them the alternative of the 4G solution with speeds up to 10 times faster than what you are getting on 3G," said Jason Corrigan, commercial director at Digicel. "We are an enabler and we are bringing the Internet to people."
With the introduction of 4G, Jamaica is once again ahead of the curve in teledensity, another important criteria by which potential investors judge a country's readiness and ability to conduct business.
Jamaica ranked 91 on the World Economic Forum's Global Competitiveness Index for the 2009-2010 period. Technological readiness is one of the key efficiency enhancers and out of 133 countries, Jamaica scored 50 in terms of its technological readiness. This development should improve that score and possibly the country's position on the global rankings.
"One of my colleagues was interviewed on Fox News last October in relation to the fact that we are launching a WiMax technology and they couldn't believe that a country like Jamaica had a technology like WiMax and yet they had their own problems with mobile penetration," said Linehan.
"But when we look at the technologies that are available, we look at the successes of the technology and then we look at the need of the operation that we work in. So if you look at the Jamaican operation... Jamaicans are very tech savvy and they want the best," he added.
However, with the cost of WiMax ranging from $1200 per week, to $3,000 for 30 days, the matter of affordability was raised, given the context of a global economic crisis which has weakened consumer spending power.
Jim Hogan, broadband director at Digicel, told Sunday Finance that the company did its research and found that Jamaica, despite the challenges, was ready for a 4G offering. He said similar research in Malaysia, which has a per capita income lower than that of Jamaica, found a 50 per cent broadband penetration.
"We are very confident that we are going to get good traction here. Jamaicans have been happy for new products and new technology and we are very confident. We have invested around US$27 million in this project, so we have to have a lot of confidence to do that," said Hogan.
"All of a sudden now you are increasing the footprint of broadband availability from 17 per cent to 60 per cent. What that means is dynamic and paradigm changes," Linehan said, adding, "What it means for Jamaica is a better economy, better education and better entertainment."
BY ALICIA ROACHE Sunday Finance reporter roachea@jamaicaobserver.com
Sunday, August 22, 2010
SOME changes, though profound, take place quietly. When Digicel launched its mobile phone service in Jamaica over nine years ago, the mass penetration was unexpected but very profound. The company had projected 100,000 customers in one year. They achieved that target in 100 days.
On Friday, Digicel introduced another offering that could, by its assessment, change the Jamaican landscape as radically as it did with mobile phones. The company became part of a select few firms globally to launch fourth generation (4G) technology for wireless Internet, with that for mobile phones coming in the near future.
Digicel bosses try out the latest innovation offered by the company. From left is Mark Linehan, CEO; Jim Hogan, commercial director; and Donovan White, head of marketing at Digicel. Consumers can get a first-hand look at the 4G broadband service at the Digicel Consumer Electronics show this weekend at the Wyndham Hotel in Kingston. (Photos: Bryan Cummings)
Digicel’s netbook, which is sold separately, can be used to access the wireless 4G service. Customers can get the netbook through a range of financing packages available through the National Commercial Bank, some credit unions and Courts Jamaica.
With this service, Digicel customers who choose either prepaid or postpaid packages can access super-fast Internet through a 4G modem to their computers or laptop. Customers can choose among the seven, 14 and 30-day plans, or a monthly postpaid plan. Customers who register for the 14 or 30-day plans will get double usage time up to September 30. The service is available across all parishes, covering 60 per cent of the population and 200 communities with further roll-out planned.
The opportunity exists because while up to 64 per cent of people have access to internet in Jamaica, only about four per cent of the population has access to the Internet in their homes or on the go because of the low penetration of broadband. 4G broadband will open up endless possibilities to these people, said Digicel CEO Mark Linehan at the launch of the new service held at the Spanish Court Hotel in Kingston.
More particularly, it could increase the educational and employment opportunities for Jamaicans and improve GDP growth, thereby facilitating the development of a better economy. However, perhaps the most important component is its possible effect on businesses and productivity.
"The research has shown that for every 10 per cent increase in broadband, that increases GDP per capita by 0.9 per cent to 1.5 per cent," said Linehan. "In time, the same way mobile phone penetration increased the efficiency and productivity of businesses and people, this will have a similar effect," he told Sunday Finance. "If you look at the broadband penetration at the moment, there are businesses in Jamaica, across Jamaica that do not have access to the Internet and that's slowing their potential down. But this will release their potential and open up huge opportunities to them," he said.
Hopeton Dunn, director of the Telecommunications Policy and Management (TPM) programme at the Mona School of Business, UWI, believes that the introduction of Digicel's 4G WiMax technology could have a 'catalytic effect' on the use of the Internet in many facets of business, education and everyday life.
"These developments are very significant and will definitely contribute to the further development and expansion of the ICT industry in Jamaica," said Dunn.
The ICT industry is indeed a target for further development, according to Linehan, who noted that with the introduction of 4G, there would be more development potential for knowledge workers and software developers.
"It's gonna give young, talented minds an opportunity to dabble in software development and applications development, which is one huge industry that is coming our way -- the development and creation of applications for smartphones. So this will give young, budding entrepreneurs access to information, access to suppliers, access to potential clients. It's going to be great," he said. "It is a kind of mass market/business product. It's going to be big on education. Its going to help education, it's going to help entertainment and it's going to help businesses, and obviously the economy."
Unlike other Internet services that offer fast speeds, 4G WiMax from Digicel requires no lines or expensive infrastructure build-out. Nor will customers be tied to a desk, as with a modem and a netbook; WiMax can be accessed in the car while on the go.
"Obviously for people on the move and people around the country who have had to use the 3G solution, this is now giving them the alternative of the 4G solution with speeds up to 10 times faster than what you are getting on 3G," said Jason Corrigan, commercial director at Digicel. "We are an enabler and we are bringing the Internet to people."
With the introduction of 4G, Jamaica is once again ahead of the curve in teledensity, another important criteria by which potential investors judge a country's readiness and ability to conduct business.
Jamaica ranked 91 on the World Economic Forum's Global Competitiveness Index for the 2009-2010 period. Technological readiness is one of the key efficiency enhancers and out of 133 countries, Jamaica scored 50 in terms of its technological readiness. This development should improve that score and possibly the country's position on the global rankings.
"One of my colleagues was interviewed on Fox News last October in relation to the fact that we are launching a WiMax technology and they couldn't believe that a country like Jamaica had a technology like WiMax and yet they had their own problems with mobile penetration," said Linehan.
"But when we look at the technologies that are available, we look at the successes of the technology and then we look at the need of the operation that we work in. So if you look at the Jamaican operation... Jamaicans are very tech savvy and they want the best," he added.
However, with the cost of WiMax ranging from $1200 per week, to $3,000 for 30 days, the matter of affordability was raised, given the context of a global economic crisis which has weakened consumer spending power.
Jim Hogan, broadband director at Digicel, told Sunday Finance that the company did its research and found that Jamaica, despite the challenges, was ready for a 4G offering. He said similar research in Malaysia, which has a per capita income lower than that of Jamaica, found a 50 per cent broadband penetration.
"We are very confident that we are going to get good traction here. Jamaicans have been happy for new products and new technology and we are very confident. We have invested around US$27 million in this project, so we have to have a lot of confidence to do that," said Hogan.
"All of a sudden now you are increasing the footprint of broadband availability from 17 per cent to 60 per cent. What that means is dynamic and paradigm changes," Linehan said, adding, "What it means for Jamaica is a better economy, better education and better entertainment."
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