By McPherse Thompson, Staff Reporter 
Industry, Commerce and Technology Minister, Phillip Paulwell (right), gestures while announcing plans for Government's award of a fourth cellular telephone licence during a press briefing at his Trafalgar Road, New Kingston office yesterday. Beside him is Minister of State for Industry, Commerce and Technology, Senator Aloun N'dombet Assamba. - Norman Grindley /Staff Photographer
THE GOVERNMENT will, over the next month, be accepting proposals for the award of a fourth cellular telephone licence, the winner of which will be announced in mid-May, Minister of Industry, Commerce and Technology, Phillip Paulwell said yesterday.
The successful licencee will be allowed to start operations as at March 1, 2003, which coincides with the opening up of the island's telecommunications market to competition in all areas.
Award of the licence is being made against the background of what Mr. Paulwell said was a careful and thorough evaluation, which has shown "there is sufficient room for expansion in the existing market to accommodate another player" alongside Cable & Wireless Jamaica (C&WJ), Digicel and Centennial.
Speaking at a press briefing at his Trafalgar Road, New Kingston office, the Minister said the award of the additional licence would be done by competitive assessment. This means that recommendation for the licence will be based not only on price, but on financial capability, technical and commercial feasibility, appropriate expertise and experience.
Request for proposals, which went on sale yesterday at US$5,000 (about J$238,500) each, must accompany each application.
Asked if the American telecommunications giant, AT&T was among those from whom the Jamaican Government has received expressions of interest for the licence, Mr. Paulwell said.
"We have been receiving, since the middle of last year, a number of expressions of interest ... many of which have come from large and dynamic telephone institutions across the world." However, he said it was not appropriate at this time to identify any of those companies.
Cabinet has established a reserve price for the licence and has determined that it would be recommended by an evaluation team, chaired by Director-General of the Office of Utilities Regulation, Winston Hay, and comprising representatives from the Spectrum Management Authority, Jampro and the Fair Trading Commission.
He said the evaluation process would be thoroughly transparent and due diligence would be conducted on the successful applicant before the award of the licence. If the successful applicant "passes the due diligence exercise and is deemed to be fit and proper," a licence will then be awarded on March 3, 2003, the Minister added.
Mr. Paulwell said the Government intended to inject part of the proceeds from the sale of the licence into the controversial Information Technology (Intec) Fund, the amount of which would be determined by Cabinet.
Expressing disappointment with the lack of local participation in the auctioning of the first two wireless licences, won by Digicel and Centennial in the first round of the opening of the telecommunications market, Mr. Paulwell said he was again making "a special appeal to the Jamaican business community to get involved in this opportunity."
According to the Minister, "despite huge efforts made to encourage local entrepreneurs to get involved, only one Jamaican firm, InfoChannel, participated in the auction as a joint venture partner."
While he was encouraged by the level of local participation during phase two of the liberalised telecommunications regime in September last year, Mr. Paulwell suggested that "our local investors stand the risk of being left behind if they fail to get involved now."
Noting that Digicel was one of the fastest growing telephone companies in the mobile wireless business worldwide, Mr. Paulwell said Centennial was now spreading across the island "and with the award of this new licence, the telecommunications landscape will be even more dynamic."
