The transformation of MiPhone's network to 3G technology is a US$300-million investment for America Movil, the company said yesterday as it rolled out the company's new brand, Claro.

Claro Jamaica CEO Alejandro Guiterrez said the company had already spent US$270 million, saying it was "quite a heavy investment for the first year of operation".

Further expansion

He said that figure did not include the cost of further expansion of the network, building packets or the cost of bringing in the 170 different kinds of handsets that will be offered on the 3G network, which he said would "probably be around US$30 million more".

Claro comes to the market with offers of video call conferencing, web browsing and features that 3G technology facilitates, but is also launching with call rates that it says are as much as 40 per cent cheaper than current cellphone rates.

"Just by comparing the prices that competitors have in this island, we will (cut) 40 per cent off the price even without subsidising anything," said Guiterrez.

He said the iPhone as well as other exclusive handsets will be offered free of cost when tied to the purchase of a call plan.

Claro's network is not yet fully built out, but the company plans to increase the number of cell sites from the present 475 to 610 by December.

In addition to Apple Inc's iPhone, Guiterrez said Claro would be introducing more exclusive handsets to the market, a business opportunity Claro is able to exploit because of the size of its America Movil parent, which has 170 million customers in the Americas.

DEAL WITH APPLE INC

Under the deal with Apple, for example, America Movil bought 60 million iPhones for distribution in its markets. Claro Jamaica has exclusive distribution rights to the phone in Jamaica.

Claro is a distant third among the top-three mobile phone providers in Jamaica with around 250,000 customers - Cable and Wireless has 660,000; Digicel 1.9 million - but commercial director Noel Esty, says there is still room for growth.

"The market is not saturated," said Esty, and Claro will be capitalising on the gaps that exist.

john.myers@gleanerjm.com