Sunday, September 14, 2014

CWC invests US$250 million in LIME Jamaica - Mobile 4G LTE, Broadband, LIME TV and FTTH Expansion will make LIME the Google of Jamaica

“We are already on that growth path. LIME has opened up the gateway to growth in mobile data and high-speed broadband by offering the Jamaican market best-value plans and affordable pricing. In mobile, we've lowered the price of entry-level Smartphones like the Huawei Y330, occasionally as low as $3,999 plus GCT, and received overwhelmingly positive demand for the device which is arguably the most desired handset for persons who want Internet-on-the-go but are on a tight budget”

Chief Executive Officer of CWC, Phil Bentley, during a Press Conference at LIME Jamaica's Carlton Crescent headquarters off Half-Way-Tree Road in Friday September 12th 2014

CWC (Cable and Wireless Communications Plc) seems to have decided to put their faith in the LIME Jamaica. Either that or their financial reports ending Financial Year March 2014 must have impressed the top brass at CWC as pointed out in my blog article entitled “CWC Report ending March 2014 indicates LIME Jamaica's improving Bottom Line - Project Marlin heralds Solar Powered Telecom Provider to Reduce Operating Costs”.

This as they’re decided to invest some US$250 million in the upgrade of the LIME Jamaica Network over the next three (3) years as stated in the article “CWC pumping US$250m into LIME Jamaica”, published Sunday September 7, 2014, by Richard Browne, Business Reporter, The Jamaica Gleaner.

The announcement was made by Chief Executive Officer of CWC, Phil Bentley, during a Press Conference at LIME Jamaica's Carlton Crescent headquarters off Half-Way-Tree Road in Friday September 12th 2014 as stated in “Phil Bentley positive about LIME's future”, Published Friday September 12, 2014, The Jamaica Gleaner.

It comes 2 weeks after CWC purchased Grupo Sonitel in Panama for some US$36 million in a bid to expand their Corporate, Enterprise, Government and SME (Small and Medium Enterprise) customers in Latin America as concluded in my blog article entitled “US$36 million purchase of CWP S.A by Grupo Sonitel – CWC’s subsidiary Acquisition in Panama marks Latin American Expansion for CWC”.


Being as this was his first time to Jamaica, he may have gotten lost on the way to the Big House, as he actually came 40 minutes late. Either that or he may have stopped for a Red Stripe and a Jerk Chicken as per the video from the Jamaica Observer as shown above.

CWC invests US$250 million - Mobile 4G LTE, Broadband, LIME TV and FTTH Expansion islandwide

CWC is apparently aiming to improve Mobile, particularly smartphone penetration and Broadband coverage across the island. According to Chief Executive Officer of CWC, Phil Bentley, the figures read as thus:

1.      30% for smartphone penetration
2.      30% for Broadband penetration

To this end, CWC is investing in the expansion of the following:

1.      Mobile 4G LTE (Long Term Evolution)
2.      Broadband i.e. ADSL (Asynchronous Digital Subscriber Line)
3.      LIME TV
4.      FTTH (Fiber to the House)

Apparently the former Gas and Oil man who did stints at United kingdom largest Energy company British Gas as Managing Director of British Gas and still holds a seat on the Centrica Plc from November 2000 to June 2013, has great faith in Jamaica as obvious his comments during the Press Conference from the “Phil Bentley positive about LIME's future”, Published Friday September 12, 2014, The Jamaica Gleaner.

This as their US$250 million investment is from a larger sum of US$1 billion that CWC has earmarked for the Caribbean, with the three (3) year investment being 25% of the total amount, forcing Chief Executive Officer of CWC, Phil Bentley during the Press conference to comment, quote: “It's a level of investment that we've never made in the region”.

The fact that they're sinking a quarter of their investment sum into Jamaica indicates that they really still see future profitability in Jamaica, especially as they’ve already earmarked some US$80 million in the build out of a 4G LTE Network using AWS (Advanced Wireless Services) Spectrum as described in my blog article entitled  “LIME chooses AWS for 4G LTE – AWS  Link Budget difference reduces Shadowing as It’s all about Optimization and Human Nature”.

LIME Broadband Explosion  - US$250 million will make LIME the Google of Jamaica

Telecom Provider LIME, once they're launched their 4G LTE Service later next year, may then repurpose their 3G Network for M2M (Machine to Machine) Services and even  Mobile Money services as hinted in my blog article entitled “Telecom Provider LIME and M2M Services - Free SMS and EDGE for the Caribbean to Foster Regional Integration”.

Certainly would give Telecom Provider Digicel some competition, as they may have plan to launch Mobile Money Services later in 2014 or even early 2015 as I’ve suggested in possible my blog article entitled “Digicel to roll out Mobile Money Service in 2014 - Haiti Tcho Tcho Mobile Love is Bringing the Boom with ScotiaBank heralds Cashless Society by 2015

Glad to see they'll also be investing in expanding FTTH from just an experiment using the residents of the upscale communities of Rhyne Park Community in St. James and Morris Meadows community located in St. Catherine as guinea pigs as stated in my blog article entitled “LIME goes FTTH like Verizon's FiOS - Free ADSL after FTTH Mass Adoption”. 

If FTTH becomes widespread, like the repurposing of 3G Mobile Internet, Telecom Provider LIME may also repurpose ADSL to provide Wi-Fi Hotspots in Eateries and Fast food Restaurants as described in my blog article entitled “Fast Food Wi-Fi for LIME's ADSL Broadband when FTTH goes Mainstream - Mother's and KFC to Supersize Me with Wi-Fi”.

FTTH, with this investment, will go islandwide service that will, along with Mobile Broadband, contribute some 25% to the company's long term profitability over the next three (3) years as stated in my blog article entitled “LIME experiences 25% increase in Profits due to MTR - 4G LTE and FTTH like Bahamas with IPTV Streaming LIME TV will give LIME 3 Days to Kill

Additionally too, they'll be expanding their ADSL Business Service as well in a more aggressive push against Triple Play Provider FLOW as described in my blog article entitled “LIME rolls out new Business themed ADSL and Local and International Landline Calling Bundles - DigiHome offense could Herald the coming of LIME FTTH and relaunch of LIME TV”.

US$250 million Investment in LIME Jamaica - LIME TV going mainstream in a push against FLOW

With all this bandwidth being bandied about i.e. 4G LTE, ADSL and FTTH, it creates the ideal conduit for Streaming Broadband Services such as LIME TV. FTTH especially would basically mark Jamaica’s push into Gigabit Internet in a manner similar to what’s happening in the US of A when Google Fiber and Gig.U began pushing Gigabit Internet as chronicled in my blog article entitled “Gig.U Third Annual Report - Google Fiber's American Gigabit Internet Revolution as Jamaica starts Broadband Internet Revolution”.

Especially now that Telecom Provider Digicel has now official acquired the assets of Telstar Cable on Thursday September 11th 2014 as described in my blog article entitled “Digicel officially acquires Telstar Cable – Why Digicel is launching IPTV Streaming over 4G LTE using 20 Years of Cable TV History”.

LIME TV will of course be the most visible change coming from LIME Jamaica is this investment. Eventually as FTTH goes mainstream, we'll see real competition against Triple Play Provider FLOW, Telecom Provider LIME real competition in terms of Broadband, not Telecom Provider Digicel.

This as Telecom Provider Digicel still has to built out their Fiber Optic Network in order to even start providing business Grade 4G LTE Service as described in my blog article entitled “Digicel’s Fiber Optic Network has July 2014 Completion Date – Launchpad for 4G LTE, Frame Relay, FTTH and Cloud Based PBX Services”.

Now with this investment, we have a more even race between LIME and Digicel. What will FLOW do now? I'll explain that in a next set of articles on Triple Play Provider FLOW.



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