Recommendation already made on successful bidder for 4G network infrastructure

Jamaica is set to add a new entrant to the mobile market, as the government is close to deciding on the successful tender to its recent 700MHz spectrum bid.

The Spectrum Management Authority (SMA) has reportedly received multiple bids and is now in the process of deciding a winner. The successful bidder would bring to three the number of mobile players in the Jamaican telecoms market.

Under the terms of the tender, the winning bidder will be obliged to invest more than J$2.25 billion (US$14.75 million) in building out its 4G network infrastructure. The new player will replace Caricel, which provided services over the 700MHz band between 2016 and 2020.

Caricel licence was revoked in 2018

The licence awarded to Caricel was revoked in 2018 by the SMA, owing to security concerns around one of its principals. As reported by CommsUpdate, the vacant 4G-ready 700MHz spectrum consists of a 2x10MHz block, with the concession valid for 15 years.

Interested parties were asked to submit both a technical and financial proposal, with the latter pledged in US dollars. In a recent interview, SMA Managing Director Maria Myers-Hamilton reported that “the good news is that the auction was successful, and we now have in front of the [Technology] Minister a recommendation for a possible third player in the market”.

In addition to the possible new entrant, Technology Minister Daryl Vaz is also reviewing requests for additional spectrum from incumbent mobile providers, Digicel and Flow. The operators argue that they need to increase capacity on their oversubscribed networks.

Commenting on the requests, Myers-Hamilton stated that “a full analysis of the application has to be done”.

She added: “The fact is, yes, there is a deficit in terms of the spectrum and, yes, we recognise it, and we are working in a collaborative mode with all stakeholders to ensure we get a win-win.”