Come this October, a local consortium called Merit will be providing an alternative fibre cable telecommunications outlet and so C&WJ is anxious to get a jump on its competitors by offering competitively priced products and services.

It has already reduced its broadband prices by 33 per cent from last year and this week it launched its high speed Internet service "Max", which offers hardware and access in a single package.

What does it cost?

The small device comes complete and ready to use with a monitor, keyboard and mouse and allows users to browse the Internet, send and receive e-mails and use instant messaging services. This latest Internet access solution can be obtained by a number of ways. Cable&Wireless customers can obtain it for a one-time fee of US$299. Then one can pay in full on the next telephone bill (US$299). Then there is the 24 monthly payment of US$14.99 on the telephone bill. Of course one can deposit US$99.99 then pay 24 monthly instalments of US$9.99. Max purchasers with no CWJ service contract pay US$ 349 in cash.

Developed by Advanced Micro Devices (AMD), "Max" also comes with pre-installed software from Microsoft, including Windows Media Player for music downloads and video streaming and spreadsheet and word processing capabilities.

Based on the consumer response across the Caribbean, it is expected to be popular not only with households but also educational institutions, libraries, government departments and agencies and other places that offer Internet access to the public.

C&WJ's new president and CEO, Rodney Davis said: "Recently we announced major cuts in the price of our high speed Internet service which makes it more affordable but we knew that the high cost of personal computers was still an obstacle for many people. "Max" is an affordable alternative for access.

"Broadband is already demonstrating that it can have a positive impact on business and the economy as a whole but only three per cent of our population have it. That is well below parts of Asia, Europe and North America where penetration is well over 30 per cent."

C&WJ have declared that it is committed to bringing broadband to 50,000 homes by the end of the fiscal year.

At the launch of Max which took place at the Knutsford Court Hotel, Kingston, the chairman of C&WJ and the chief operating officer of Cable & Wireless Caribbean Len de Barros said: "This year we plan to invest over US$6 million in Jamaica and hope to achieve 10 per cent broadband penetration by the end of March 2006.

"Max will be a key tool for enabling us to reach our goals, as it helps customers overcome one key barrier to entering the broadband game - the cost of a computer. Now people in Jamaica will be able to take advantage of a plug-and-play, easy to use device for under US$15 a month - that connects them to the Internet."
Yesterday's AGM

At yesterday's AGM held at the Hilton Hotel, Kingston, C&WJ's chairman, Leonardo de Barros revealed that the company had registered a net profit of J$2.2 billion for its financial year compared to a loss in the previous year of $5.3 billion. The sum of $510 million was taken from its pension fund surplus and placed on the P&L account.

Adjusting for the post-tax impact of the Impairment, the adjusted net profit attributable to stockholders would have been $1.9 billion in 2003/2004, according to its annual report. The current net profit represents a 14 per cent increase over the prior year but with inflation likely to be 15 per cent this year; its profits may to some degree be negatively impacted.

Revenue declined by five per cent from $23.4 billion to $22.2 billion. The company is of the opinion that $600 million of this decline resulted from higher than usual line rental rebates but nevertheless its revenue figure for the year under review was indeed flat.

The company re-branded its mobile division and although bmobile resulted in more subscribers, revenues of that division declined due, C&WJ says, to lower average revenue per user. C&WJ had been spending between $1 and $2 billion every year on handset subsidies. The elimination of subsidies will allow it to re-invest that money in other areas of its business portfolio.

Revenues in its domestic fixed line business also fell - by $1.5 billion.

This decline, the company says, was due to the reduction in the number of fixed line customers during the first half of the year, lower usage residential customers substituting their fixed line with a pre-paid mobile phone. The second half of the year saw the Homefone re-branding of fixed lines which has produced a steady customer base. C&WJ's Residential Services Manager, Evan Garricks told shareholders that the company will concentrate firstly on rolling out new landlines in Montego Bay. Last year 10,000 ADSL lines were put in.

Of particular note was that earnings per stock unit rose to 13.56 cents compared to a loss last year of 32.00 cents. Shareholders approved the Board's recommendation of a dividend payment of 6.00 cents, which equates to $1 billion.
Encouragingly the telecom company's share price has moved from 0.98 cents in April 2004 to $1.55 in March 2005 representing a 60 per cent return on investment.

Lenardo de Barros took the opportunity to commend the former president and CEO Jacqueline Holding for her contribution to the company's improved performance and said that the intention always was to install a Jamaican in that position.

Approximately half of both the board of directors and the senior management team do not hold stock in the company, a position very similar to last year. Then the chairman gave a commitment that this situation would improve. Yesterday he again gave that commitment.

He added: "Listening to shareholders today (yesterday) it is clear that we as a company have to be more customer service-focused and we need to adopt a 'can do culture'."
Addressing shareholders the new President and CEO, Rodney Davis said that his tenure in the top job would be focused upon customer service, rewarding loyalty and accountability.