Local telecommunications solutions company, Jamaica Newtork Access Point (JNAP) Limited, has been acquired by the United States-based Digital Utilities Ventures Inc (DUTV), an outfit which specialises in the development of Internet protocol video transport systems.

The deal, which is still to be closed at an undisclosed date, will give DUTV 100 per cent ownership of JNAP.

JNAP head Mark Reid will be elevated to chief executive officer of the merged entity, which will operate as Digital Utilities Ventures.

In announcing the acquisition last week, DUTV dubbed the deal a merger of resources and breakthrough technology-base that "creates (an) IPTV and network solutions company with global reach".

Connectivity hub

In a statement, DUTV, which according to a website listing for the company, has its registered office in Florida, said JNAP will continue to operate out of Jamaica as its wholly owned subsidiary offering hardware, software, consulting, and support services to telecommunications carriers and entertainment content suppliers as a connectivity hub in the Caribbean region.

JNAP already offers these services and lists telecoms LIME, Digicel, Merit of the US, as well as light and power firm, Jamaica Public Service Company, as clients.

Leveraging the strengths of the two companies, DUTV said, it is now moving to set up its video transport technology, hardware and support services centre in Jamaica and its software research and deve-lopment facility in Dallas, Texas.

DUTV suggested the move will cut operating costs and strengthen the technical capacity of the business.

Reid, who still works out of JNAP's New Kingston offices was not available to comment on the development. But the DUTV statement said, "the merger creates a combined technology portfolio that extends from the traditional point of one-service product offerings to using DUTV's New Last Mile technology to converge critical infrastructures and services such as television broadcasting via the Internet directly to TV and cellphones with WiMAX (4G), WiFi, 3G, fibre, or cable as the delivery systems".

The statement quoted Reid as saying: "With our one-stop-shop capabilities, we offer telecommunication providers the possibility of covering all areas of products and services to all digital devices on their network with JNAP as a central network access point partner."

DUTV President Garry McHenry called the deal an "ingenious consolidation of businesses".

Reid is reportedly the sole shareholder of JNAP, having acquired control in 2007 following the passing of Dean Panton.

Panton, who founded the company in 2003, died from a heart attack.

JNAP, like other relatively small players in Jamaica's telecoms sector, would be feeling competitive pressure as a result of the current investments in newer technology.

Backup facility

Digicel Jamaica, for example, through its Digicel Business division, has opened a fully equipped data storage and offsite back-up facility at Caymanas in St Catherine, which it offers to Jamaican companies, effectively competing, it appears, with a similar service provided by JNAP.

Based on information gleaned from its website, JNAP offers network, communications and support services including cellular site support services maintenance; network provisioning for fibre, IP voice and data; consumer broadband and VoIP Internet; a business protection and data centre facility; and carrier neutral interconnect services.

DUTV concentrates on marketing broadcast programming to television and cellphones, an Internet based platform, called the New last Mile, by piggybacking on existing broadband connections.

business@gleanerjm.com