This record is a partial extract of the original cable. The full text of the original cable is not available.

081957Z Feb 06

UNCLAS SECTION 01 OF 02 KINGSTON 000278 
 
SIPDIS 
 
COMMERCE PASS FOR NTIA 
 
STATE PASS FOR EB/CIP/MA 
 
E.O. 12958: N/A 
TAGS: ECPS JM
SUBJECT: JAMAICAN SPECTRUM MANAGEMENT POLICIES 
 
REF: 05 STATE 225777 
 
¶1. (U) Econoff delivered reftel talking points to Delroy 
Brown, official at the Spectrum Management Agency (SMA) of 
the Ministry of Commerce, Science and Technology (MCST) on 
December 21, 2005.  Brown requested that the specific 
questions be left with him so that he might direct them to 
the appropriate subject matter experts.  Econoff followed up 
by telephone on several occasions, but was informed that SMA 
was moving offices, and that meeting the January 10, 2006 
deadline would be unlikely.  Brown contacted Econoff on 
January 12 to inform that the questions had been misplaced. 
Econoff faxed questions to Brown on January 13, and received 
written replies on February 1.  Post regrets the delay in 
responding. 
 
¶2. (U) Answers are keyed to reftel questions. 
 
A.) Responsible Authority: The body responsible for spectrum 
management in Jamaica is the Spectrum Management Authority. 
This independent regulatory body is an agency of the 
Ministry of Commerce, Science, and Technology (with Energy) 
and was established by the Telecommunications Act 2000. 
 
B.) Assignment Process: The method generally adopted for 
assigning licences is first come, first served.  The 
Authority has applied other methods in the past, such as 
auctions for the cellular licences in 2000.  Going forward, 
the authority is looking towards other methods of spectrum 
assignment, based on the circumstances of the market.  This 
will include Comparative Review and the use of Licence- 
Exempt spectrum. 
 
C.) Licensing Regime: As per the Telecommunications Act, 
Section 23 (4), the "Minister may grant a spectrum licence 
in connection with the provision of a facility or specified 
service".  The policy of the Government of Jamaica is that 
licensing should be technology-neutral.  Licences are issued 
for one year, with the exception of Maritime Mobile Licences 
which are issued for four years and are renewable. 
 
D.) Licensee Privileges: At this time in Jamaica, licensees 
do not have "property rights" to the spectrum to which they 
have been assigned.  Therefore, they may not trade, lease, 
or share spectrum in return for payment.  There is no 
secondary market for spectrum licences.  Licensees do not 
have the right to transfer licences to other parties. 
Licences may only be transferred to another party with the 
permission of the Minister.  Generally, the new users will 
need to apply for a new licence.  All payments with respect 
to spectrum licences are made through the Authority. 
 
E.) Spectrum Fees: Spectrum users are required to pay three 
types of Fees as follows: 
 
Processing fee:  This is a non-refundable fee charged to 
applicants to cover the administrative costs of processing 
the licences. 
 
Spectrum licence fees: These annual fees are charged for the 
use of the spectrum.  Spectrum licence fees are charged 
using the Regulations to the Radio and Telegraph Control 
Act, 1998, as a guideline.  All spectrum licence fees 
collected by the SMA are remitted to a Consolidated Fund. 
 
Regulatory Fees:  The Telecommunications Act of 2000 made 
provisions for the SMA to charge regulatory fees to finance 
the normal annual operating costs of the Authority. 
Regulatory Fees are charged based on a "Value-Based 
Mechanism," following a principle of the more spectrum you 
use, the higher the fees you pay.  These fees were 
introduced in April 2003.  Spectrum users are divided into 
two Groups according to the commercial benefit derived from 
the use of the spectrum. 
 
Group 1 consists of cellular companies who utilize by far 
the most spectrum and derive the most commercial benefit 
from the use of the spectrum. 
 
Group 2 is split into two levels: 
 
Level 1 - those who derive little or no commercial benefit 
from the use of the spectrum.  These users are holders of 
spectrum licences only and required to pay 35 per cent of 
the value of the spectrum licence fee. 
 
Level 2 -  those who derive commercial benefit from the use 
of the spectrum  and are holder of Carrier and/or Service 
Provider licences from the Office of Utilities Regulation 
(OUR).  These users are required to pay 70 per cent of the 
value of the spectrum licence fees. 
 
Further details of the Value-Based Mechanism for regulatory 
fees may be seen in a consultative document issued in 
January 2003 at www.sma.gov.jm 
 
Exemptions: Exemptions from processing fees and regulatory 
fees are possible, subject to review by the SMA.  Exemptions 
for spectrum licence fees are made with the approval of the 
Ministry of Finance and Planning.  Broadcasters are exempt 
from paying fees based on the Radio and Telegraph Control 
Act. 
 
F.) Treatment of Government vs. Commercial Users: Apart from 
the exemptions given to some Government entities with 
respect to the payment of fees, Government users are subject 
to the same terms and conditions as commercial users of the 
spectrum. 
G.) Other Incentives: The Authority is working toward a 
revision of the fee structure for licences.  The fee 
structure will move to a more market-based approach to 
capture the economic value of the spectrum and create 
incentives for more efficient use of this resource. 
Government Spectrum: Government spectrum is treated in the 
same way as commercial spectrum, with the exception that 
certain Government entities may be exempt from fees, as 
indicated above. 
H.) In-Country Contacts and Studies: The management of the 
Spectrum Management Authority is available to discuss these 
issues in further detail: 
 
Mr. Ernest W. Smith - Managing Director, SMA - 
ewsmith@sma.gov.jm 
Mr. Henry Batson - Director, Spectrum Engineering, SMA - 
hbatson@sma.gov.jm 
Mrs. Michele Thomas - Director, Policy and Strategic 
Planning, SMA - mthomas@sma.gov.jm 
 
The postal address and telephone and fax for all contacts 
above is: 
 
Spectrum Management Authority 
2 Floor VMBS Building 
53 Knutsford Boulevard 
Kingston 5 
Jamaica 
 
Tel: (876) 929-8550, 8520 
Fax: (876) 960 8981 
 
Recent In-Country work which includes these issues includes: 
Stern Peter, 2004.  Review of the Legal, Institutional and 
Regulatory Framework for the Telecommunications Sector and 
Recommendations for Reform. 
Generally, there are a number of internet papers on market- 
based economic mechanism for spectrum assignment, including 
the ITU Trends in Telecommunication Reform 2004/05 - 
Licensing in an Era of Convergence. 
 
JOHNSON