The Caribbean’s COVID-19-ravaged telecommunications industry is in need of “urgent” government bailout, amounting to millions of dollars, to prevent poor-quality service and higher prices for consumers, a powerful regional lobby group for firms like Digicel and FLOW has warned.
The Sunday Gleaner has obtained leaked documents CANTO submitted to CARICOM begging the regional institution to lobby Jamaica and other governments for assistance, pointing out that some operators have lost more than 60 per cent of revenues during the last three months as a result of the global pandemic.
CANTO, which represents 48 operators in 28 countries, has proposed a cut in licence fees by 50 per cent for three years retroactive to 2019; and that firms be allowed to reclaim debts governments owe from taxes and other fees.
While the new figures are not known, the Government had anticipated $1.16 billion in revenues from telecoms licence fees, which means that if Jamaica buys into CANTO’s proposal, the Government stands to lose over $600 million.
Asked whether the ministry is open to considering adjusting telecoms fees, Williams disclosed that during the “heights of the COVID-19 pandemic”, consideration was given to waiving spectrum licence and regulatory fees for the temporary assignment of additional spectrum to assist telecommunication providers.
