MiPhone building in New Kingston. - contributed

MiPhone on Wednesday scoffed at rumours of a retreat, declaring that its multibillion plans to build out its network here were proceeding as planned.

But the company did admit that its cell tower project was interrupted over what company spokesman Noel Esty said was a misunderstanding with planning authorities, but declined a full explanation.

MiPhone is investing US$250 million (J$18 billion) in a 500 cell towers and a 3G mobile network.

The roll-out of the Apple iPhone - which it has exclusive rights to distribute in Jamaica - is contingent on the transformation of its CDMA systems to 3G.

"No man can stop the progress," said Marketing Manager Noel Esty, as he discounted heavy rumours that the America Movil- owned company had given up on plans to take on big-hitter Digicel Jamaica.

Esty, without calling names, said MiPhone knew the source of the "misinformation."

Asked directly whether MiPhone was erecting sites without approval from the necessary planning authorities, Esty responded: "We have had some difficulties with the site roll out mainly because the company contracted to do it ran into some difficulties, which resulted in us doing some damage control."

He refused to clarify, but the Financial Gleaner understands that there was a misinterpretation by MiPhone's Chinese contractors about which entity had the final say to clear the way for work to proceed.

"We've had some issues with the parish council and we are working them out," continued Esty, but again, held back comment on which council.

MiPhone is currently the smallest of the big three in Jamaica's mobile market, commanding more than 200,000 customers against Digicel's 1.9 million.

But America Movil, after it acquired the company that operates MiPhone, Oceanic Digital, immediately began to spread the word that it was serious about growing its market here.

War room

Digicel in response set up a war room to counter any attacks on its market share, and is gearing up to do battle with America Movil which is said to be the world's fifth largest mobile phone company, commanding 60 million subscribers, and owned by one of the world's richest men, Carlos Slim.

It is anticipated that the rivalry will truly heat up once MiPhone goes ahead with its promised launch, which the company suggested was imminent.

Esty says the name MiPhone will likely be retired once the rebranding of the company's mobile services is complete.

America Movil is the first to bring Apple's iPhone to Latin American markets. The company, through MiPhone, will distribute the 3G mobile phone exclusively in Jamaica.

"It's a part of the big roll-out within the next few months," he said.

New cell sites

That roll-out will also include the iPhone product, and commissioning of new cell sites.

Esty said the team was still researching a name for the new operation, but said it would not be 'Claro' as speculated now. Claro is one of America Movil's largest subsidiaries in South America.

The name of the company that will operate the brand will remain Oceanic Digital Jamaica Limited.

The MiPhone brand was launched in 2004 at a time when the company was attempting to fashion a new beginning, after the ownership structure changed and Oceanic, an American company took full control of the Jamaican operation, having bought out its 51 per cent majority partner Centenniel.

Oceanic, which came into the market after Digicel, was slow off the mark in grabbing customers, but managed to boost its business to around 250,000 currently after its deal with MegaFone, a subsidiary of the collapsed Cash Plus group and provider of long distance calling and land line services.

Since Cash Plus' collapse some of those clients have transferred their subscriptions to MiPhone.

Still way behind

But at an estimated 220,000 to 250,000 users, MiPhone is still way behind even its closest rival Cable and Wireless Jamaica, which has 660,000 subscribers.

The company believes its expanded network of cell towers will provide the leverage it needs to grow, and that the iPhone, the latest mobile craze, will give it an edge in the market.

"We want to have more coverage than the two other players combined," said Esty. "We are building our 3G network."

Esty said MiPhone expected to have the major part of its site layout completed by the end of this year, but refused comment on the status of the project, citing competition.

susan.gordon@gleanerjm.com