LogicTV launch ‘in due course’
From launching LogicTV to a $54 million fibre network investment, KeyTech’s Cayman Islands communications company has big plans in the Caribbean, which could signal what it plans to do in Bermuda now that telecoms reform has taken hold.
We asked KeyTech about its Cayman and Bermuda plans, and if LogicTV was a possibility for Bermuda
“Absolutely, our design and deployment of this service has always included being offered in both jurisdictions,” KeyTech CEO Lloyd Fray said yesterday.
“Now that Logic in Bermuda has an ICOL (Integrated Communications Operating Licence), Logic will be able to launch this service in Bermuda in due course.”
Logic is expanding its fibre network in the Cayman Islands in order to offer the highest internet speeds plus new services such as LogicTV, which costs $39 to $72 a month in the islands. Channels are transmitted over high-speed fibre optic cables unaffected by bad weather and the packages include DVR, HD and video on demand.
Mr Fray said the company’s $54 million investment there was “the estimated total cost for the fibre build out in Cayman which could take 5 to 7 years”.
Logic CEO Mike Edenholm told the Cayman Compass the company’s significant investments in a relatively small market were an indication of parent company KeyTech’s confidence in a recovery of the Cayman economy.
Although the country’s historic growth rates have been interrupted, he said he believes Cayman will grow both in terms of the size of the economy and its population.
For example there are some major projects, like Health City, in the works. “A fully loaded Health City is 12,000 people.
Edenholm who as the CEO is also responsible for Logic’s operations in Bermuda says Cayman is not just another market.
“It is the market that is why I am here,” he told the Cayman Compass newspaper.
Asked about KeyTech’s view of a recovery of the Bermuda economy, Mr Fray said: “KeyTech continues to invest in its telecommunications subsidiaries in Bermuda, as demonstrated with the recent amalgamation of Logic Communications Ltd with North Rock Communications.
“Over the past three years KeyTech’s subsidiaries have invested heavily in communications infrastructure in the Bermuda market. Our subsidiaries will continue to strategically align their investments to meet market demands.”
LogicTV, a subscriber-based television service that launched in January in the Cayman Islands is not only a significant investment but it also pits Logic against LIME which has the majority of residential internet customers and WestStar which services the majority of the residential television market in the islands.
LogicTV packages include restart and catch-up features providing customers with a more interactive usability than standard cable or satellite options. As channels are transmitted via the fibre optics network the image is unaffected by wind or rain.
To adequately provide customers with the ability to record multiple HD channels, the service consumes a tremendous amount of capacity on the fibre side, Edenholm told the Compass.
Typically customers are using between 50 and 100Mbs between television, internet and telephone, but this is expected to increase. As a result the fibre bandwidth that Logic brings into a home far exceeds the 20Mbs customers are charged for the internet connection.
In addition to growing its corporate market offering, the extension of Logic’s network with a $54 million investment over the next five years constitutes a push into the retail segment.
With a fibre network Logic can not only offer the so far highest internet speeds, up to 20 megabits per second, but also new bandwidth intensive services such as internet based TV.
Logic is the trade name of WestTel Limited, a wholly-owned subsidiary of Bermuda’s KeyTech.
WestTel offered telephone and internet services, independently from WestStar’s TV business. When the two shareholders had differences about the future direction WestTel was going to take, KeyTech bought out all the shares in the venture in 2010 and rebranded it as Logic, according to Mr Edenholm.
In a move to solidify its position in the Cayman Islands communications market, Logic earlier this year announced the acquisition TeleCayman. The firm offers similar products and services but it is TeleCayman’s fibre network that is the main objective of the deal.
“With the purchase of TeleCayman Limited, Logic will have a significantly larger fibre footprint enabling us to service more customers over a larger area of the island,” Edenholm says.
Edenholm says Logic, like other affiliates of the KeyTech group, is an infrastructure company, whose focus it is to provide better infrastructure. Until now Cayman was lagging behind internet speeds offered in most industrialised countries, mainly because most internet services are provided over wireless or landline DSL networks. At the same time prices are comparatively high.
Cayman’s lack of infrastructure is driving the market to fibre. WestStar is already building a fibre network and Edenholm expects LIME to follow as well.
“The reason we chose fibre is the price point has come way down from ten years ago. It has a strong growth curve; we can meet the demands of the public for many years to come,” he explains.
Slow internet speeds where another reason for Logic to exit its wireless offering altogether and move all customers to fibre.
“I would say the price point for internet is $99 and that is where it is at,” Edenholm says and adds Logic will always offer three packages at different speeds and prices.