(Jamaica Gleaner) After hitting a snag in the auction of the 700MHz band, Science, Technology, Energy and Mining Minister Phillip Paulwell has said the process is back on track.
Paulwell gave the assurance on Wednesday after West Portland Member of Parliament Daryl Vaz questioned whether the auction was still on the table.
“The 700MHz spectrum auction process commenced in April. However, we have been advised that the auction process has been postponed indefinitely. Is it that the reserve price tag is out of the reach of an existing operator and not attractive enough for a new entrant?” Vaz questioned.
Paulwell, in late March, announced that the Government is to auction two licences for use of the 700MHz band, with a view to attracting new entrants to the mobile telecommunications market. He said the Government hopes to issue the licences by July 15.
Paulwell, while not disclosing reasons for the delay in the auction, said “the process for the conduct of the auction is back on the original timetable”.
He said the response from potential investors in China for the auction of the band has been positive.
“Now is the best time to get a third player,” Paulwell told The Gleaner.
He said the Government is auctioning two licences, one with reserved price at US$45 million, and the other at US$40 million.
In the meantime, Vaz said the Opposition is not in support of the sale of the spectrum.
“The Opposition is of the opinion and recommends that it is best that the Government should not sell this national asset now until data penetration of existing technology is much higher and there is actually a demand for greater data services which cannot be provided by old technology,” Vaz said.
He added: “Selling the licences now will only give a windfall to the early buyer, and not necessarily the best buyer, who is willing to hold this licence.”
But Paulwell said the Government will not be changing course on this decision to auction the frequency.
“In 1999, when we did a similar auction, many thought it was a pipe dream, yet we earned just under US$100 million. Though our voice penetration rate is high, our wireless broadband roll-out is low and expensive. There is a clear opportunity in this segment of the market. We are proceeding,” Paulwell said.
