Flow Jamaica is reporting a 40 per cent penetration of its triple play service, which by the condition of its licence must be rolled out nationwide.

The company has said it will miss its 2011 deadline for blanket coverage, but has not settled on a new timeline to finalise construction of its broadband network.

The Broadcasting Commission, the regulatory agency that monitors electronic media and cable operators, says it has been duly advised of Flow's progress, and has no problems with the delay.

"If the licensee fails to inform the commission prior to the deadline, then the licensee risks being cited for breach of licence, which may result in a recommendation for suspension of the licence," said Nicole Morrison, the commission's information officer.

"Flow has been submitting it's 'Quarterly Compliance Report' which captures it's roll-out progress and highlights any delays in its roll out of services. The commission has, therefore, been adequately informed of the licensee's progress."

No new deadline

Michelle English, president and chief operating officer of Flow, hinted at a revised timeline of 2013 about six months ago, but in July she declined to recommit to a new deadline.

"2011 has been pushed out a little, but it will be tough to say right now when we will be completed," she said at the time.

"We are a bit behind but trying to look at ways that we can make that up, so we would not want to give a hard and fast time."

Flow, a subsidiary of Columbus Communications, in its three years in the Jamaican market, has invested US$200 million in its digital network.

A portion of the funds snapped up some nine smaller players, deals that Flow chased not for the technology or equipment - some of which the company acknowledged later proved to be so outdated as to be unsalvageable - but for the cable operators' customer base.

Flow said it paid between US$2 million and US$10 million per company.

It has put other acquisitions on hold for now.

Delay notice

The cable company must give formal notice to the Broadcasting Commission of delays in carrying through on what its licence stipulates, outlining the reasons and spelling out ameliorative measures to be taken.

Extensions are not granted automatically but must be approved by the Minister of Information, said the commission.

English blames theft of amplifier equipment - electronic devices attached on utility poles to extend the reach of cable signals - and the devaluation of the Jamaican dollar for the company's inability to press ahead on the schedule initially agreed.

To replace the amplifiers will cost US$1,000 each, English said.

The thefts are also blamed for some of the service disruptions to Flow customers.

mark.titus@gleanerjm.com