I read all your comments including “I believe the same scenario is quite standard across most of the countries in the region.” My intervention was simply to speak to the situation in Jamaica and also to say that that for the purposes of the analysis provided it is the “incremental cost that is at issue”

Selah

AnsordEarl – I suggest that you read my last comment, and you would see that I was speaking to the Barbados experience. There are also countries like Dominica, St. Kitts & Nevis, St. Vincent, Anguilla, etc. that have similar issues with bundling of the local loop. My point is simply that the figures provided maybe somewhat misleading, even with the caveat tendered “the comparison would be limited to the monthly subscription rate payable for fixed Internet service only.”

Hi Neil-Harper.

Actually, in Jamaica there is significant choice in terms of whether or not Broadband and land line services are bundled. Indeed, many persons take their internet service from one provider via cable even while maintaining fixed line from another. In any event, one way to look at it, is that what is important in assessing the cost of broad band is the incremental charge for the service. So if you already have a land line that is a legacy arrangement and a cost which you are already bearing. In that event, what you will need to determine in electing to opt for Broadband Internet is the incremental cost of getting that service. So for purposes of comparison, this is the cost that should be compared with equivalent cost if it is obtained from a competing provider.

I agree with the claim that access to the local loop is not an end in itself but rather it the completion benefits that it can generate. In that regard I am not seeing what is the point of disagreement.

The goal of LLU is more than providing equal access to the local loop. It is also about reduction of shared loop prices (up to 75% in some jurisdictions), driving innovation and affording greater choice to consumers. The USD$21.98 that I quoted was for a basic landline with no extra features (IDD, call forwarding, call waiting, etc.), and was basically a hidden cost in the overall pricing of LIME’s Iegacy Internet service — legacy as in copper pairs and not wireless local loop or FTTx. The only viable competitor for LIME in Barbados is Flow, and their coverage map for FTTx is not the greatest, as illustrated in the following URL:

http://discoverflow.co/barbados/service-availability

Hence, there are large catchments in the country where my statements would hold true. And once again I reiterate, there are many other countries in the Caribbean where this scenario is replicated. Am I wrong?

Hey nielharper,

As I indicated for this same comment under last week’s article on Internet speed and pricing, while I generally agree with you regarding the principle of the local loop and local loop unbundling (LLU), do recall that it has been stated that the comparison would be limited to the monthly subscription rate payable for fixed Internet service only. There may be additional costs and fees payable, but those were not being considered in the assessment conducted.

However, please also note that LLU is more about providing competitors with access to the local loop, i.e. the last mile from the closest exchange to the customers, thus eliminating the need for other players to fully replicate existing infrastructure. In the USD21.98 you are quoting for the landline service, that is a retail price, which not only includes the cost of the local loop, but also a broad range of other elements and costs, e.g. the infrastructure from the local exchange to main exchange, as well as call origination, interconnection and termination charges . Hence, in my opinion, the figures that you providing are also misleading…

On another note, and as mentioned before, your comment suggests that it is not possible to have Internet service at home without having a landline service, i.e. a fixed-line telephone, but that is really not the case.

In many of Caribbean countries, you can have your landline services from one provider and your Internet from another. Also, with regard to billing for Internet service (only), typically, it would not necessarily include a separate charge for the “landline” per se, especially if the Internet is the only service that is being accessed. Instead, the cost for the cabling (and of the local loop) would be incorporated into the month subscription rate advertised, along with the installation/activation fees that might be payable…