THE EDITOR, Sir:THIS IS a letter to Cable & Wireless:
Cable & Wireless Internet Service may be the most expensive in the world. With the increased costs in telephone rates, the high cost of Dial up Service, plus extraordinary high costs of Broadband ADSL, Internet users are saying goodbye to these vital services which are used for research and education, and of course entrance to the global economy.
As of November 1, 2002 it has become much too expensive for most Jamaicans to utilise. There are over 400 Internet Service Providers (ISP) in the United States and I have checked and checked, none is anywhere as expensive as Cable & Wireless Jamaica Limited, at US$34.95 per month, plus the cost of the telephone per minute usage. The cost for Broadband ADSL is US$93 per month, maybe the most expensive in the world.
Please allow me to put down some figures which I hope you will find interesting.
Internet Connection: flat rate, average usage five hours per day.
Monthly usage:
Cost of Internet connection flat rate US$34.95 (exchange rate 57.00) JA$1,992.15
Telephone dedicated to the Internet.
Rental per month: $380
Per minute cost 40 cents for weekdays, and 30 cents per minute for weekends.
Weekdays average usage per month 21 days at five hours per day: $2,520
Weekends average nine days at five hours per day: $810
Total Cost: $5,702.15
GCT: $1,140.43
Grand Total: $6,842.58
Per Year Cost: $82,110.96
As a comparison in the U.S., the principal providers are AOL, MSN, Earthlink, Mindspring, AT&T, Net Zero, Bell South, and you do have free ISP but you will be choked with banner advertising.
Cost per month ranges between US$10.95 Net Zero and US$21.95 for AOL. The average price is under US$20 per month. You can get much lower rates from each one if your usage falls below three hours per day.
With regard to the cost of the phone line, a basic line from Bell South or one of Bell South's subsidiaries is US$12.50 per month without any features. This phone does not attract additional costs for usage, provided that all calls are local, for example a 305 phone (area) or a 954 phone (area) calls with numbers beginning with 305 or 954 no additional costs are attracted.
What is the total cost in the USA? Internet connection flat rate, indefinite usage, 24/7/365.
Rental per month: US$20
@57.00 JA$1,140.00
Telephone Cost per month: US$12.50 @57.00 $712.50
Total Cost: $1,852.50
Tax: (6%) $111.15
Grand Total: JA$1,963.65
Per Year Cost: JA$23,563.80
There you have it. C&W costs are 3.48 times more than the U.S., or 248.46 per cent higher than the costs in the U.S.
ADSL INTERNET SERVICE
This vital addition to the Internet service is most welcome, in that, it will facilitate E-commerce, however, the cost of US$93 per month for residential needs, where a student uses it for on-line courses (MBA etc.) is prohibitive. This same service is provided in the U.S. and throughout the Caribbean. For example, in St. Lucia the cost is EC$127 per month, equivalent to US$46 and of course the cost in Jamaica is US$93 . According to my research the cost in the U.S. is between US$35 to US$45.
I think that Cable & Wireless is making a huge mistake in overcharging its customers in Jamaica for this vital service. I have been in marketing for a very long time and I predicted that Cable & Wireless would lose over 50 per cent of its market share in the cellular business as soon as an effective competitor comes along. I am now predicting the same thing will take place as well for the ADSL business; it is only a matter of time.
I am etc.,
RAYMOND GRANT
r1941@hotmail.com
13 Liguanea Avenue
Kingston 6
Via Go-Jamaica
