By Andrew Green, Staff Reporter 
Investors in NetServ have gained a head-start in offering a telephone service when the market is deregulated next year, says Spectrum Management Authority (SMA) managing director Ernest Smith.
NetServ now has a VSAT licence which allows it to receive incoming international calls to carry out its call centre activities, Mr. Smith said. That is set to change in March next year when the market is to be deregulated.
"They will be able to offer outbound calls," Mr. Smith said. The NetServ owners will need a new licence next year to offer this, but that is not expected to be a problem in the freer market conditions after March. The SMA is the government's telecommunications enforcement arm.
"I know that consideration was given for the renewal of the NetServ license," Mr. Smith said. This "consideration" took place earlier this year when the company assets were being assessed for its sale. Minister of Industry, Commerce and Technology Phillip Paulwell has the power to grant such licences.
A reliable source also told the Financial Gleaner that NetServ would provide both call centre services and a telephone service.
With the equipment already in place to bypass the Cable & Wireless network, NetServ can send and receive international calls for customers, Mr. Smith said.
NetServ now has sales agents working out of its New Kingston office, while two engineers man the equipment that supports the local sales operation from offices in Miami.
The telecommunications market will change substantially after it is deregulated next year, Mr. Smith said. This will make NetServ, along with other operators having VSAT equipment more valuable to their owners.
NetServ is the holder of one of several Very Small Aperture Terminal (VSAT) licences issued by the government. These allow the operators to send and receive data over their own satellite uplink.
NetServ collapsed last year after the government had injected about $177 million into the company from its Information Technology Fund. Early reports said the equipment and furniture owned by the company had been acquired at a cost of US$2.2 million or about J$106 million.
The government subsequently took control of NetServ and it is now being sold to Miami-based Touchpoint Centres International for US$4.25 million or about J$204 million, according to a government statement issued earlier this week. Touchpoint will make a cash deposit of US$750,000 and pay the remaining US$3.5 million over the next six years.
