The
recent quiet in the Newspapers, Broadcasters and from the Telecoms Providers
themselves with regards to any news related to their activities has been
glaring. No new stories on TechJamaica, the widely accepted
aggregator of all things related to computers, technology and Telecommunications
and Broadcasting in Jamaica.
This
unusual quiet, from my personal experience working first as a Network
Maintenance Technician at C&W (2001 to 2004) and then later as a RF
Technician (2008AD - 2009AD) at CLARO Jamaica Ltd.
This is a
combined experience of approximately five (5) years, is that this level of
quiet is usually before the launch of some major new service, as was the case
back in 2002 when the then CWJ at which I was working at the time was
relauching their Network as a GSM Network rebranded as bMobile.
The
launch of Digicel’s WiMaX 4G Mobile (IEEE 802.16d) slated to launch at the
end of the Second Quarter of 2010AD as stated in the article “Digicel
to offer mini laptops with 4G service next year”, published Friday
September 4th 2009AD
by Lavern Clarke, The Jamaica Gleaner.
ZTE Corp
of China as their build out partner of their
new WiMaX 4G Mobile (IEEE 802.16d) Network as stated in
the article “Digicel
signs ZTE as 4G MobileWiMax Internet Partner”, published Sunday, September 27, 2009AD, The Jamaica Observer is hovering in the air.
So too is
the possibility of Telecom Provider Digicel
launching its foray into Broadcasting in the form of DigiTV in Jamaica, already
successfully launched in Vanatu, Tonga and other Polynesian islands also
possibly to be launched a little before the launch of their WiMaX 4G Mobile (IEEE
802.16d) Network, possibly at the start of Rising Stars, as strongly hinted in
the article “DigiTV launch for 2009AD
- Mobile provider branches into TV”, published
Friday November 14th 2009AD
by Ross Sheil, Online
Co-ordinator, The Jamaica Observer.
If all
these events are really going to happen in the latter part of the second
quarter of 2010AD, which is effectively in the summer, then one can expect big
things from Digicel. But, the
learned and work-weary experienced John Public suspects something deeper is at
work.
This as
the level of unusual quiet without any pre-announcement of any sort surrounding
these impending launches is a little more than usual. Can it be that there is
something else on the horizon, some bona
fide reason that explains
this abnormal quiet?
It seems
there is. In 2002AD the then Telecom Provider C&W filed a lawsuit against
Telecom Provider Digicel alleging
that Telecom Provider Digicel’s
stance on setting cross Network Rates (off-Network Rates) Mobile was unlawful
and was in breach of the Telecommunications Act of 2000.
Then
Telecom Provider LIME contended that
the high Cross Network Rates between Telecom Provider Digicel and itself, which is
currently is about JA$17.70, as opposed to JA$12.00 for LIME as stated in the article “What’s
behind the two-Phone syndrome?”, published March 7th Sunday 2010AD by the Sunday Herald was
unfair.
Obviously,
the learned John Public can see that this would make it prohibitively difficult
to make cross Network calls from Telecom Provider Digicel, thus resulting in charges of
“ring-fencing” by Telecom Provider LIME.
Since leaving Telecom Provider C&W in 2004AD I have been tracking this key
test case which originated back in 2002 as it relates to the interpretation of
the Telecommunications Act of 2000. Telecom Provider C&W eventually won the
case in 2007AD.
Telecom
Provider Digicel was then ordered
to pay over the US$340 million it had owed C&W ushering what was then
thought was the coming of flat rate calling regulated by the OUR (Office of
Utilities Regulation) despite reservation about regulation by Government by
then COO (Chief Operating Officer) Colin Webster as stated in the article “Local Phone
Rates may be lowered”, published Thursday January 25, 2007AD by, Ross
Sheil, Staff Reporter, The Daily Gleaner, The Jamaica Gleaner.
However,
Telecom Provider Digicel, the sore
loser, quickly appealed and the case dragged on until 2009AD when Telecom
Provider LIME took the case all the way
to the Privy Council in the United
Kingdom.
Then came
the good news. Telecom Provider Digicel
not only lost the appeal, but also passed a ruling in effect upholding Telecom
Provider LIME’s position on the case.
This is
that the OUR has oversight over the regulation of Cross-Network Rates as the
OUR regulates utilities and under the Utilities Act, Telecoms Providers, NWC,
JPS Co. and Sewage despite the fact that the Telecommunications Act of 2000
does not explicitly state that the OUR is responsible for setting Rates.
In
addition, historically it has been known that the Privy Council always rules in
favour of Commonwealth Governments on issues relating to regulation of
Utilities in all former British Colonies, thus the outcome was basically
assured once Telecom Provider LIME
brought the case to the Privy Council.
This loss
by Telecom Provider Digicel to
Telecom Provider LIME is one of a
string of lawsuits that Telecom Provider Digicel has lost, inclusive of the
case which was finally resolved in the Supreme Courts in which Telecom Provider
Digicel blocked calls on Telecom
Provider LIME’s international circuits
in December 2008AD and January 2009AD.
There is
also a case of contempt brought against Country Manager, Geoff Houston and
Lawrence McNaughton as mentioned in the article “LIME wins another legal
round against Digicel”, published Sunday February 14th 2010AD by The Sunday Herald.
But the
real battle royal is just about to begin.
Telecom
Provider CLARO, apparently awakened from their docile slumber, without waiting
for the ink to dry on the ruling from the Privy Council, the prima facie of their lawsuit against Telecom
Provider Digicel in the Privy
Councils equivalent of the legal gazette as it relates to the OUR and oversight
with regard to Cross-Network calling, has already filed legal proceedings
against Telecom Provider Digicel
and a complaint with the FTC (Fair Trading Commission).
Telecom
Provider CLARO is alleging that the Cross-Network calling rate contract into
with Telecom Provider Digicel,
albeit legally binding, in light of the Privy Council ruling is now null and
void, and can be claimed also to be an example of anti-competitive action on
the part of Telecom Provider Digicel,
thus explaining the filing with the FTC as well as the lawsuit being brought
against Telecom Provider Digicel.
If this
were a chess game, this would be a very good move and a quite fortuitous
pre-emptive strike against the “Old’Cel”, as to wait on the OUR to finally make
a determination of the applicability of the Privy Council ruling and begin to
set Cross-Network Rates would take at least another two (2) years at the least
or up to eight (8) years at worst.
This as
Telecom Provider Digicel may seek
to refresh and have the case retried against Telecom Provider LIME, citing that it be interpreted in
terms of a specific legal issue between themselves and Telecom Provider LIME.
Even
better, the fact that Telecom Provider Digicel
did not immediately seek to cancel all Cross-Network contracts (the habeus corpus for Telecom Provider CLARO case) with
ALL other Telecoms Providers with which it had set Rates for Cross-Network Rates
via contract would mean that ALL of these Telecom Providers can also join
Telecom Provider CLARO.
This
would be the biggest Class Action suit and Class Action complaint to the FTC
involving Telecoms Providers and their complaints with regards to the
anti-competitive behavior of Telecom Provider Digicel in setting Cross-Network Rates
in a manner that is akin to “ring fencing” (to quote Telecom Provider LIME Executives) in a bid to hasten the
OUR playing its hand.
Thus, as
additional action, it is being recommended by the learned John Public that all
Telecoms Provider who have Cross-Network rate contracts with Telecom Provider Digicel that they STILL have not
annulled should join forces with Telecom Provider CLARO. Then not only could
they bring the matter of the anti-competitive behavior to the attention of the
FTC but also file a lawsuit against Telecom Provider Digicel in a bid to prevent them from
appealing the specific application of the Privy Council’s ruling as it relates
to the oversight of the OUR with regards to setting Cross-Network Rates.
This would
force the OUR into action to make all contracts null and void and make setting
Cross-Networks Rates priority and thus begin to actively regulate and set cross
Network Rates between the various Telecoms Providers with Telecom Provider Digicel.
Once and
for all there would be a level playing field, and as it is easier with the
already beleaguered and overburdened OUR, usher in something that the OUR finds
easier to regulate and maintain and something that John Public would
appreciate: Cross-Network Flat Rate Calling between all Telecoms Providers.
Not only
would Cross-Network Flat Rate Calling usher in a more competitive Telecoms
Sector, as for the first time all Rates would be the same, it would result in most
members of John Public being able to have only one (1) Mobile Phone based
solely on offerings in terms of services and Rates on that particular Network
Thus
making Telecom Provider Digicel’s
advertising antics a waste of time, as in this new OUR regulated paradigm, the
same common rate cross Network would mean you would have to hold on to Customer
on the basis of good Customer service alone.
Even
better, it would be the perfect setup for the introduction of MNP (Mobile
Number Portability). While researching MNP (Mobile Number Portability) while
writing my Proposal for the Telecoms Providers, the main focus for the Telecoms
Providers next year, it became apparent that contrary to what was said in the
article “Mobile
Firms divided on Mobile number portability” published Friday, 15 May 2009AD, The Jamaica Gleaner.
MNP (Mobile
Number Portability) and many of its ilk, once implemented in a coordinated
structured manner, MNP (Mobile Number Portability) would not only benefit
Customers, in terms of removing the need for discounts on handsets and result
in real competition based solely on pricing, the introduction of Free Postpaid
or Plans.
It would
save Telecoms Providers millions of dollars each year on Phone Numbers, Phone
Instruments (Mobile, fixed line Mobile,
landline or wired /wireless modems) IMEI and SIM Cards (Mobile, fixed line Mobile, landline or wired /wireless
modems) as well as overall Mobile cell site maintenance.
This once
Telecoms Providers do something they have not since Senator Phillip Paulwell,
the then Minister of Telecommunications, liberated the Telecoms Sector and
enacted the Telecommunications Act of 2000, primal Legislation by which the
Telecoms Providers are guided – share their Telecom Infrastructure Resources.
Thus I
and many young people who have since left the Telecoms Sector are left to
wonder if the reason for not introducing MNP (Mobile Number Portability) is
politically motivated as MNP (Mobile Number Portability) would not only result
in increased co-operation and cost savings, it would also result in a more
unified control of the Mobile Industry by having third-party scrutiny i.e.
Government of Jamaica as well as increased security protocols.
Employees,
for example, would have to be implanted with RFID (Radio Frequency
Identification) to identify persons entering and leaving cell sites which would
be co-located, as all Telecoms Providers, under a properly set up (Mobile
Number Portability) environment, would have unfettered access to all sites in
order to do work seamlessly.
The
increased level of security both from without and within, would make it
difficult for Employees seeking to gain additional revenue from the
unauthorized usage of the Telecoms Providers Network and hence may be the real
source of opposition to MNP
(Mobile Number Portability)
In
addition, the cost savings due to the streamlining of the Telecoms Providers as
specified in my Proposal would also result in a general increase of salaries,
as the Telecom Providers would have no excuse to not be able to pass on the
cost-efficiency results of just simply sharing which would result under MNP (Mobile
Number Portability).
To wit,
Telecom Provider LIME Employees would
clamor for equal pay with their Telecom Provider Digicel counterparts and Telecom
Provider CLARO Employees would clamor for a pay increase and promotions that
many feel are due since the changeover from MiPhone to Telecom Provider CLARO
and Telecom Provider Digicel
Employees would ask for a pay increase since redundancies were done, as stated
in the article “Digicel
ofers voluntary redundancies”, published Tuesday, January 13, 2009AD, The Jamaica Gleaner.
Salaries
as high as JA$160,000.00 per month per employee, right cross the board could be
possible if Telecoms Providers were to share their resources on every level,
from Engineering, Finance, Human Resources, etc.
Thus it
is in the best interest of not only the Telecoms Providers but the Telecoms
Providers Employees to go MNP (Mobile Number Portability), for as it will
result in increased scrutiny from the Government of Jamaica and possibly more Taxation,
the unprecedented level of sharing that is required in my Proposal
If
implemented, should leave a smile on the Telecom Provider’s Employees faces
each month when they check their salaries, as the level of efficiency that
would be achieved would be so great that the Telecoms Provider would have no
choice but to pass on the surplus to its Employees.
This
would be both in increased salaries as well as Telecoms Providers giving back
more to society, both in the form of Direct Financial Support as well as via
employment of suitable pre-trained and qualified personnel from our local
universities who were given training under programs hosted at the Universities
provided jointly by all the Telecoms Providers.
Therefore
a more efficiently, streamlined Network would eventually result in increased
Government of Jamaica scrutiny but also in increased revenues for Telecoms
Providers and Telecoms Providers Employees, even in a Recession, and MNP (Mobile
Number Portability) and the high level of sharing which would result from
companies putting aside their differences.
If
ignored, MNP’s non-implementation would be to the long term disadvantage of
Telecoms Providers, especially as most Financial Analysts have forecast the
after effects of the Recession in fragile Third World Economies to continue on
for another seven (7) years, even if the Recession in the United States of
America were to be over by the year 2010AD.
As the
high cost of Mobile Phone instruments and Cross-Network calling is now again in
the spotlight, and may now finally start getting some media attention.
The Jamaica
Herald is striking the first chime on the gong with the start of this article
of what may possibly be some real coming competition by virtue of championing
the above in the start of their series articles entitled “What’s behind the
two-Phone syndrome?”, published March 7th Sunday 2010AD by the Sunday Herald on
the Telecommunications Sector and the reason why we as John Public are forced
to have more than one Phone.
The issue
of MNP will begin to resonate with more a more Jamaicans, especially as the
just successfully concluded JDX (Jamaica Debt Exchange) thus far achieved as
stated in the article “JDX
ends at 99 per cent; Minister says thanks”, published Thursday, February 25, 2010AD, The Jamaica Observer.
The
Government of Jamaica’s economic recovery plan is as laid out in the article “'No more
skylarking' - PM outlines economic
programme and debt exchange”, published Thursday, January 14, 2010AD by
Arthur Hall, Senior Staff Reporter, The Jamaica Gleaner.
As far as
one can see, the Government of Jamaica aims to:
1.
Increase the Tax Net
2.
Reduce local debt
3.
Sell off
non-performing Government of Jamaica infrastructure
4.
Cauterize the
continuous slide of the Jamaican dollar via a US dollar denominated loan from
the IMF
5.
Implementation of laws
necessary to encourage growth such as the Credit Reporting Act and the
CyberCrime Act as stated in the article “Move to
Tackle CyberCrime - Hacker got Golding”, published Sunday February 14, 2010AD by Philip Hamilton, Gleaner Writer, The Jamaica Gleaner.
Eventually
this should reduce inflation by the separation of our economy from the US
dollar by liberalizing the Energy Sector. John Public is feeling pain and would
like to see what the Telecoms Providers, who appear to be getting fatter and
fatter while members of John Public grow thinner and thinner.
As the
majority of Jamaicans are experiencing the increases in basic commodities due
to the increases in electricity and motor vehicle fuel, John Public is quick to
notice that albeit other industries are squealing, the Telecoms Providers seem
to be quiet and are neither contributing anything, whether in support or in
opposition to the increased level of Taxation being imposed by the Government
of Jamaica.
This
observation holds true not only for the Telecoms Providers, but also for the
Power Utility Companies, Broadcasters and the Newspapers, all in capitals to
indicate their prime importance to Jamaica, as they make life on this little
island bearable and possible.
As the
price of commodities on the World Market increase and the Government of Jamaica
increases and introduces new Taxes, one is left to wonder if these increases
are in some way benefiting the Telecoms Providers. Telecoms Providers, Power
Utility Companies, Broadcasters and the Newspapers may in fact, be dodging Taxes.
This as
many of the Telecoms Providers et al may
not submitting themselves to thorough audits in every department of their
companies and may be in fact not only dodging Taxes payable on PAYE salaries,
but also on financial transactions, evidence of which I witnessed when I used
to work at Telecoms Providers C&W (now Telecom Provider LIME) and Telecoms Providers CLARO.
In both
instances, I had pointed it out to Senior Management at CLARO and to date no
attempt by the respective Telecoms Providers have been made to make their
companies more transparent to the Government of Jamaica and be more Tax
compliant. In one instance, one Telecom Provider has repeatedly refused to make
their profit and loss statements public.
After
eight (8) years of operation in Jamaica,
albeit this Telecoms Provider has begun to make profit, is yet to give any
indication to John Public that it intends or has the intention to make an IPO
(Initial Public Offering) to allow the local investors to invest in the
company. Thus making the company truly Jamaica by allowing all Jamaicans a chance to
be shareholders in their company and “revel in their success”
I am thus
left to wonder, also, why official inter-map sharing had not already been
initiated at the Telecoms Providers, inclusive of the Big Three (3) Telecom
Providers and Big Three (3) Broadcasters
as going MNP (Mobile Number Portability) and going DSO (Digital Switch Over)
respectively would require that this information not only be made widely
available to the Government of Jamaica but also John Public.
John
Public, the Jamaican people, are most interested in knowing what the Telecoms
Providers, Broadcasters and Newspapers, who are all part of Telecommunications
are doing in compliance with the Government of Jamaica in order to increase the
Taxable Revenues collected from the Industry.
In addition, the streamlining of Telecommunications
and Broadcasting would allow for the entry of more Local Investors with the
freeing up of spectrum in the Television and Radio Frequency Spectrum,
specifically the “White” Spaces Frequencies that exist between the frequency
bands in Television Broadcast as described in my blog
article entitled “Telecoms
and White Spaces - A Man for All Seasons and the Big Bang Theory”.
It is hoped the Spectrum Management
Authority will eventually auction off these “White” Spaces Frequencies as
Spectrum License free for High Speed Data usage reserved for Small Telecoms
Service Providers. Benefits abound for both John Public and the Telecom
Providers when Cross-Network Flat Rate Calling and MNP Cometh.
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