Minett Lawrence | Crisis in telecommunications industry

It has been months since dialing from your mobile and getting through at once is automatic. It has even been longer since you can complete a call uninterrupted. Dropped calls have become the norm, sometimes multiple times in completing one call.

By any definition, the Jamaican telecommunications sector is in crisis. This crisis can best be described as the absence of effective regulation, policy direction and meaningful investment in the infrastructure necessary to meet the demands of the consuming public. Regulation and policy direction are the remit of the statutory agencies tasked with the responsibility to monitor and supervise the conduct of licensees, on the one hand, and the portfolio minister with responsibility for technology, on the other hand.

The Telecommunications Act is organised around a few core principles; first, that sustainable competition is fundamental to the success of the sector; second, that policy directions is the exclusive remit of the political directorate, while all technical issues are to be addressed by the industry ­regulators named in the act. The third principle enshrines consultation with stakeholders and the public as an important element of decision-making by the regulatory agencies.

ABANDONED PRINCIPLES

The crisis has occurred because of the complete abandonment of those principles by the regulators and the minister. Most people will recall that the Telecommunications Act was passed pursuant to a commitment by the Government of Jamaica to introduce competition in an orderly manner so as to compensate the monopoly carrier for the surrender of its monopoly licences. These were signed in 1988 by then Prime Minister Edward Seaga and then Public Utilities Minister Pearnel Charles, with a life time of 50 years until 2038. In the act, provisions were made to avoid the very crisis that is unfolding, if anyone cared to take the necessary decisions.

Sections 4(1)(a) and 44(3) empower the OUR (Office of Utilities Regulations) to regulate the provision of telecommunications service and to make rules prescribing standards for quality of service. Section 65 provides for the imposition of a fine of up to $200 million on any licensee who breaches the quality of service standards, among other licence conditions.

Both the OUR and the minister acted promptly and aggressively to exercise their powers and revoke the licences of the only carrier that offered any meaningful ­competition to the two foreign ­carriers; yet neither of them can figure out an effective approach to relieve the current suffering of consumers. The minister’s only suggestion is to introduce stiffer penalties for persons who vandalise the network. This knee-jerk reaction is a bit of post-colonial nonsense too embarrassing to discuss. Investors in every other industry must expend resources on safeguarding their assets from theft, without the laws being rewritten; but not these two foreign-owned companies. Besides, vandalism is nothing new to the industry.

There is no doubt that both the minister and the OUR lack the commitment to promote and facilitate competition in the sector. The act is replete with provisions for the OUR to make rules and offer guidelines for many things, including the containment or prevention of anti-competitive behaviour by licensees. The competitive safeguard rules under Section 35, and the infrastructure-sharing rules under Section 29(a) are but two of the long-awaited regulatory initiatives which could make a difference in this time of crisis.

Regulators in other parts of the Caribbean region have begun to take an interest in the future of the industry, should the impending crash of a major licensee occur without warning. In Jamaica, Section 14 of the Telecommunications Act obliges licensees to remain financially and technically capable of meeting their licence obligations for service coverage, and quality of service, throughout the tenure of their licenses. The penalty for failing to do so is revocation or suspension of the offender’s licences.

The minister’s statement to Parliament on November 12, 2019, makes it plain that the Government is aware that the carriers are not making the necessary investment in their network infrastructure to maintain minimum standards of service. This is clearly the point at which the patient will either die, or make a remarkable recovery. The remedy is within plain view if the minister and the OUR choose to do the right thing and hold the carriers accountable.

Minett Lawrence is a tele­communications, legal and regulatory expert. Email feedback to columns@gleanerjm.com or minettpalmer@yahoo.com.