No takers for 700 megahertz band licences

The Government of Jamaica is now trying to determine the way forward, after no bids were received for the sale of licences for use of the 700 megahertz band. According to a release from the Ministry of Science, Technology, Energy and Mining, despite strong interest from entities as well as persons from 10 countries who attended a public forum for interested parties, the auction ended with no bids submitted at Friday's deadline.

The Government was expected to earn US$85 million from the auction and increase internet mobile penetration. However, Phillip Paulwell, Minister of Science, Technology, Energy and Mining, is viewing the development as a minor setback. In a statement, following Friday's deadline passed without a bid being received, Mr. Paulwell said the Government was still intent on increasing competition in the telecommunications market. He said the administration will now consider allocating additional spectrum to facilitate the development of broadband networks.

In response, the Parliamentary Opposition said the Government may have been too optimistic about the prospects for the sale of the 700 megahertz band. Dr. Christopher Tufton, Spokesman on Investment, said the lack of serious interest from investors has not come as a surprise as the investment market generally is unfavourable. He said the lack of takers was not surprising, given prevailing economic conditions.

"The investment environment for building out and for establishing yourself within this market, but also generally, is unfavourable, in a number of respects, so it is not entirely unexpected, both from the specific industry standpoint as well as from the general investment climate" Tufton told RJR News.