Richard Deane, Gleaner Writer

The Spectrum Management Authority has got expressions of interest from at least four companies in its 2.5 gigahertz spectrum, one of them European, informed sources tell Wednesday Business.

But only three licences are up for grabs.

The SMA, however, would only confirm the interest of Digicel Jamaica, which has long gone public with its plan to branch out into WiMax to build on its corporate market.

Talks

Cable and Wireless Jamaica and MiPhone are also said to be interested, but sources say the companies had not, up to a week ago, taken that interest beyond talks with the SMA.

Currently only Digicel operates wireless broadband for business clients through the 3.5 GHz spectrum, but the mobile company has declared itself as a contender for the 2.5 GHz, hoping to replicate its efforts in the Cayman Islands where it currently provides retail wireless broadband.

Space on the spectrum went on sale, following a Cabinet decision in May approving the basis of its allocation for wireless broadband, 3G, and subscriber television services, as follows:

- 125 MHz be allocated for wireless broadband and 3G services;

- 65 MHz be allocated for STV services.

Danville Davidson, acting general manager for the SMA, says that the 2.5 GHz is the preference of anyone who is serious about providing good wireless broadband services.

"The 3.5 GHz has issues in that it is unable to penetrate some walls; the 2.5 GHz, has no such issue," Davidson said.

The lower the spectrum or frequency, the better the quality, he added, and the greater its chances of penetrating thick walls without disturbance.

SMA is in the process of auctioning the frequency, a multi-pronged process, still in its early stages.

Only companies with a domestic carrier licence and a domestic voice service provider licence can bid on the spectrum.

Currently there are 34 such companies with both licences, according to SMA officials; none are Europeans.

Davidson, who is acting as head of the agency, in the wake of Ernest Smith's resignation, says a non-licencee can participate, but: "They would have to find a partner that has a licence, if they want to be a part of the bidding," he said.

Davidson said the SMA will be looking for three companies to occupy the 2.5 GHz spectrum, and that the candidates would have to prove that they can blanket at least 90 per cent of the island as well as pay top dollar for the licence.

The SMA's information memorandum suggests that the licences for the spectrum would be priced at or around US$15,000 per megahertz.

Applicants must make an 'Intention to Bid' deposit of US$150,000.

The SMA is yet to say when it plans to complete the auction and allot the licences.

It has already answered and posted clarifications on the information memorandum, done at the end of July.

The next step is public consultations followed by requests for bids.

richard.deane@gleanerjm.com