Companies bid to run improved satellite service
Two bids to offer affordable and improved satellite television were unveiled yesterday and, if licensed by Government, could be a serious threat to CableVision's virtual TV monopoly.
World on Wireless is applying to run a budget TV, high speed internet and phone link. And SGC Ventures is offering a multitude of channels - including porn networks - at a cut price.
World on Wireless viewers will have to fit a foot-wide dish on their homes to receive pictures on a set-top box from a receiver at Cable and Wireless's site in Devonshire.
Initially the service will cover 70 percent of Bermuda's households with complete coverage promised when five wireless repeater sites are added around the Island within two years.
The firm will offer 80 channels at $50 per month or 40 channels for $30.
Installation costs $100 and consumers can get a TV, internet and phone package for $225 a month.
World on Wireless says its technology is used by five million people around the world including one million Americans.
The company says it needs 23 percent of Bermuda's market to break even.
Currently CableVision supplies TV to around 17,000 subscribers in the Island's 25,000 homes although the firm is in a licensing row with Government.
Cablevision has threatened to stop service if Government doesn't improve its offer of a one-year deal.
World on Wireless also hopes to pick up a share of the Island's booming interest in the internet which is now in 67 percent of homes.
World on Wireless will be headed by CableVision founders William Craig, a Canadian, and W. Gavin Wilson, a Bermudian. Also involved in the venture are electrical engineer Troy Symonds and Meridian boss Shaun Davis, both Bermudian.
Also bidding for a Cable TV licence, which covers satellite, is SGC Ventures Ltd. whose sole shareholder is Crystal Todd.
On her project team are Cellular One Director Steve Rohnick, David Price who is Vice President of Harmonic Inc in California and lawyer and accountant Cara Lynn Greco who was the CEO of Antilles Wireless Cable in the US Virgin Islands.
They have no location for their antenna but hope to get a site in Hamilton and possibly St. George's.
Installation will cost $95 and they will offer more than 20 channels for $19.99 a month, 72 channels for $32 a month, 120 channels for $49 a month and more than 170 channels including X-rated stations for $79 a month.
This compares with CableVision which offers 12 channels at $20 a month, 40 channels at $35 a month and 55 channels at $43 a month with extra movie channels costing $10 each.
Telecommunications Minister Renee Webb said the decision whether to grant licences to the two firms would be handled by the Telecommunications Commission.
But she said the bids offered an improvement on existing satellite TV currently used by less than two percent of the population.
She said of the existing service: "It's costly, it's a couple of thousand for your dish and then you need to get it installed. It's about $3,000 before you click on your TV."
She said current satellite services were affected by cloudy weather. "I had it but I wasn't particularly pleased with it."
The new satellite technology, known as Multipoint Microwave Distribution System, is a big step forward said Ms Webb. "It's much more robust," she said.
CableVision chairman Rod Hansen said last night his company would welcome competition "as long as there is a level playing field".
"In fact, we already have much in the way of effective competition from the local over-the-air broadcasters, the providers of home satellite dishes, the distribution of video and DVD rentals and even the local movie theatres.
"It is our position that the best way to deal with competition is to provide good quality service, and that's what we want to do.
"That's why we've been hard at work to make improvements investing in our people, in equipment and infrastructure, and training programmes."The licence hearings will be held at the beginning of next month.
