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Stabroek News

Cable company rolling out high-speed Internet
published: Wednesday | August 9, 2006

Nicholas Richards, Gleaner Writer


DARBY

Logic One has rolled out its high-speed Internet service, and insiders at TelStar say that company is about to follow, as cable companies react to Flow Communication's stated intent to snag some 100,000 broadband customers by year-end.

Both cable companies avoided comment yesterday. Neither TelStar's Florence Darby, nor Logic One's Mario Francis returned calls to their offices, but industry insiders say their plans would upset the strategy set by their umbrella association of mainly small cable operators.

JACCO members, according to sources, had planned to roll out their high-speed Internet product together, apparently in response to Flow, which is backed by big money.

Billionaire Michael Lee Chin is a shareholder in the company.

Yesterday, it emerged that while Logic One has been advertising the Internet service to customers, owner/manager Mario Francis had not yet briefed staff on how it would work and what it would cost customers to connect.

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The advertisement, which has been running since the weekend on two of the channels it offers, said the service would be limited to customers in the Stony Hill area of St. Andrew.

Flow told Wednesday Business yesterday that it would initially target residential neighbourhoods of Mona, Beverley Hills, Long Mountain, Chambers Lane and Barbican - mostly mid-to high-income areas.

Jamaica's 25 cable operators, most of whom are members of JACCO, responded to Flow's market entry with accusations that it was trying to force them out of business.

Flow had announced cheap prices starting at $650 for broadband, television and cable services.

But the accusations were made after it entered into acquisition talks with 18 cable operators.

One official at JACCO said while the group was aware of the move by TelStar and Logic One, the executive was not in a position to comment officially.

The idea, the executive said, had been for members to act together.

"It is not a matter of some companies com-ing on and others staying out there in the cold," said the official.

"The move is to have everybody offering high-speed Internet access at the same time, because we at JACCO feel that this is the way to go."

JACCO president Collin Innis also did not respond to requests for comment.

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