{"id":14842,"date":"2013-04-24T06:42:49","date_gmt":"2013-04-24T11:42:49","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=14842"},"modified":"2013-04-24T06:51:33","modified_gmt":"2013-04-24T11:51:33","slug":"thoughts-jamaicas-700-mhz-auction","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2013\/04\/thoughts-jamaicas-700-mhz-auction\/","title":{"rendered":"Some thoughts on Jamaica\u2019s 700 MHz auction"},"content":{"rendered":"
In the coming weeks Jamaica will auction its 700 MHz band for mobile broadband wireless service. Is it a good investment opportunity?<\/em><\/p>\n <\/a>Last week, the Spectrum Management Authority (SMA) in Jamaica published an Information Memorandum, Licensing the 700 MHz Band<\/a><\/i>, on the proposed auction of frequencies in the country\u2019s 700 MHz band. As drafted, the Information Memorandum aims to provide some context to and a framework for the proposed auction for which Request for Bids (Request for Proposal) should be issued on or around 22 May 2013. As a follow up to our earlier post, What is so special about the 700 MHz band?<\/i><\/b><\/a>, and in light of Jamaica\u2019s imminent auction, this post briefly discusses: the 700 MHz band; possible pros and cons associated with take up of those frequencies in Jamaica; and finally, some additional considerations, with regard to Jamaica\u2019s auction process<\/p>\n The 700 MHz band that Jamaica is preparing to auction, consists of frequencies between 698\u00a0MHz to 806\u00a0MHz, which historically, was allocated for analogue television broadcast for channels 52 to 69. With the transition to digital television signals, and more importantly, mandated switchovers from analogue TV to digital TV in many countries, bands that had been used for analogue TV can now be reallocated for other services. According the band plan for the Americas issued by the International Telecommunications Union (ITU), frequencies in the 700 MHz band can be allocated for \u201cbroadband wireless access\u201d services. (For more\u00a0insight, read\u00a0What is so special about the 700 MHz band?<\/em><\/strong><\/a>)<\/p>\n The considerable take up of mobile\/cellular services globally, along with the increasing demand for bandwidth for mobile broadband and wireless broadband services, means that existing allocations are becoming exhausted, and additional frequencies are needed to satisfy demand. The 700 MHz offers a number of distinct advantages over existing allocations, which makes it attractive for mobile\/cellular or wireless services. For example, it offers better signal propagation than higher frequency transmissions, which in turn can result in improved efficiencies in the network designed and deployed.<\/p>\n For telecoms companies that intend to participate in Jamaica\u2019s auction of its 700\u00a0MHz band, it will be critical that they are confident about the long term viability of such an investment, and have developed a robust business case. Below are some issues worth considering.<\/p>\n In the Internet broadband space, there are less than 10 active Internet Service Providers (ISPs), but the three main ones are: Digicel, Flow and LIME. Flow and LIME offer a wired\/fixed broadband service \u2013 coaxial cable and ADSL over copper lines, respectively. Digicel offers a wireless broadband service (using WiMAX technology), which is popular in areas with no wired services. Digicel also offers pre-paid plans, which again makes the service popular when occasional access is needed.<\/p>\n Although not officially recorded and reported, mobile broadband subscriptions rates would be significantly lower than that for mobile voice services. Pricing is still quite high, and not readily affordable by most consumers, who might be more reliant on free Wi-Fi when available. <\/b><\/p>\n On the other hand, in 2011 fixed Internet broadband was approximately 3.9 subscriptions per 100 inhabitants (Source: ITU<\/a>), which does suggest that although there are players in that market, there might still be an untapped opportunity for additional providers. Furthermore, Internet use is nearly 10 times higher than subscriptions at 32 users per 100 inhabitants (Source: ITU<\/a>). Hence there appears to be an appetite for Internet access among the general populace, although connectivity rates are low.<\/p>\n To wrap us, attention is drawn to the fact that Jamaica has established a reserve price of between USD\u00a040 and USD\u00a045 million, for the sub-bands that it plans to sell via auction. However, cash only is not enough. There is also a comprehensive application process that will be established, which successful applicants should satisfy, and would require considerable preparation.<\/p>\n Finally, it is important to note the SMA\u2019s lengthy disclaimer for the Information Memorandum, which starts:<\/p>\n This Memorandum is for information purposes only. It is made available on the express understanding that it will be used for the sole purpose of assisting the recipient of this Memorandum in deciding whether it wishes to proceed with a further investigation of possible participation in the Award Process\u2026<\/em><\/p><\/blockquote>\n It is therefore incumbent on prospective applicants and investors to conduct their own independent research and due diligence, especially since a deposit of between USD\u00a02.7 and USD\u00a03.0 million must accompany submitted applications in order to participate in the auction.<\/p>\n <\/p>\n Image credits: \u00a0Wikipedia<\/a>;\u00a0Sura Nualpradid\u00a0(FreeDigitalPhotos.net<\/a>)\u00a0<\/em><\/em><\/p>\n ________________<\/p>\n","protected":false},"excerpt":{"rendered":" In the coming weeks Jamaica will auction its 700 MHz band for mobile broadband wireless service. Is it a good investment opportunity? Last week, the Spectrum Management Authority (SMA) in […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[7,80,82,11,6,22],"tags":[30,81,71,53,32,48,9,12],"class_list":["post-14842","post","type-post","status-publish","format-standard","hentry","category-broadband","category-broadcasting","category-business","category-ict-tech","category-internet","category-wireless","tag-4g","tag-broadcasting-2","tag-businesses","tag-competition","tag-information-society","tag-infrastructure","tag-lte","tag-regulation","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2iE1G-3Ro","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts\/14842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/comments?post=14842"}],"version-history":[{"count":5,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts\/14842\/revisions"}],"predecessor-version":[{"id":14845,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/posts\/14842\/revisions\/14845"}],"wp:attachment":[{"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/media?parent=14842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/categories?post=14842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ict-pulse.com\/wp-json\/wp\/v2\/tags?post=14842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The 700 MHz band<\/h3>\n
Is Jamaica\u2019s 700 MHz band a good investment opportunity?<\/h3>\n
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Final points to note<\/h3>\n