Summary of Proposed Investment
Project Number
10607
Company Name
Mossel (Jamaica) Limited
Date SPI Disclosed
Dec 13, 2000
Country
Jamaica
Industry
Telecommunications and Technology
Projected Board Date
Jan 30, 2001
Status
Completed
Sector
Cable and Broadband
Date Revised SPI Disclosed
Sep 18, 2002
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Mar 29, 2001
Signed : Jun 1, 2001
Invested : Jun 15, 2001
Project Description
This project involves the construction of a nation-wide digital GSM cellular network in Jamaica to offer a wide range of standard and value-added mobile services in the country. The company was awarded a 15-year license in February 2000 for this purpose, with an open tender bid price of US$47.5 million.
The project would help meet the need for better telecommunications services in Jamaica through the promotion of competition. Currently, the market is serviced by one operator, Cable and Wireless Jamaica (CWJ). Since CWJ entered the market in 1986 with the privatization of the state-controlled telephone company, it has enjoyed exclusive operating rights in both fixed and mobile services. The introduction of competition is expected to lower tariffs, improve the quality of service and customer responsiveness, and expand access to telecommunication services to a broader segment of the Jamaican population. IFC''s direct investment and the resultant competition would also help to raise the country''s relatively moderate penetration rates for mobile and fixed services of 6.5% and 20%, respectively. Moreover, the introduction of competition for the first time is likely to increase telecommunications usage nation-wide, improving the efficiency of the business sector, and increasing the connections between Jamaica and the global community.
Through its syndication, IFC''s investment would also provide Jamaica with access to international capital markets, giving comfort to potential investors that may otherwise have been wary to enter the market. It would also provide a demonstration effect, showing other governments in the region that the liberalization of their telecommunications sector will benefit their population and could be followed by international capital inflows. Furthermore, this investment would support Jamaica in its recent plans to attract and cultivate the high tech industry, which would help the country''s economy further with the movement of new businesses and jobs to Jamaica.
The project would help meet the need for better telecommunications services in Jamaica through the promotion of competition. Currently, the market is serviced by one operator, Cable and Wireless Jamaica (CWJ). Since CWJ entered the market in 1986 with the privatization of the state-controlled telephone company, it has enjoyed exclusive operating rights in both fixed and mobile services. The introduction of competition is expected to lower tariffs, improve the quality of service and customer responsiveness, and expand access to telecommunication services to a broader segment of the Jamaican population. IFC''s direct investment and the resultant competition would also help to raise the country''s relatively moderate penetration rates for mobile and fixed services of 6.5% and 20%, respectively. Moreover, the introduction of competition for the first time is likely to increase telecommunications usage nation-wide, improving the efficiency of the business sector, and increasing the connections between Jamaica and the global community.
Through its syndication, IFC''s investment would also provide Jamaica with access to international capital markets, giving comfort to potential investors that may otherwise have been wary to enter the market. It would also provide a demonstration effect, showing other governments in the region that the liberalization of their telecommunications sector will benefit their population and could be followed by international capital inflows. Furthermore, this investment would support Jamaica in its recent plans to attract and cultivate the high tech industry, which would help the country''s economy further with the movement of new businesses and jobs to Jamaica.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Randall Riopelle
Investment Officer
International Finance Corporation
2121 Pennsylvania Avenue N.W.
Washington, D.C. 20433
Email: rriopelle@ifc.org
Investment Officer
International Finance Corporation
2121 Pennsylvania Avenue N.W.
Washington, D.C. 20433
Email: rriopelle@ifc.org