Jamaica’s newest telecommunications provider, Rock Connect, is considering an Initial Public Offer to raise capital for the company.

Speaking on Taking Stock with Kalilah Reynolds, Founder and Chairman of Rock Connect, Bruce Bowen, said he’s been asked the IPO question by none less than Prime Minister Andrew Holness.

“Yes!” was his immediate response when asked by Reynolds if they plan to eventually list on the Jamaica Stock Exchange.

However, he added that it would be prudent for the company to be up and running and “cash flow positive before [they] come to market”.

According to Bowen, a group of Jamaican investors has already spent between US$10-15 million on licenses, contracts and equipment, among other things for the expected launch in late 2022.

“The cost of building out a whole network is an awful lot,” he noted.

Bowen also alluded to an announcement coming in a few days, seemingly regarding the acquisition of debt financing.

90% Broadband penetration

Rock’s telecommunications licenses allow the company to operate both mobile and broadband internet.  However, Bown said the company’s main focus will be internet service. 

“When you look at the telecommunications space [in Jamaica], there’s not necessarily an issue with phone calls,” he said. 

“But, when you look at people’s ability to get online and the quality of broadband data, it’s pretty clear that demand is outweighing supply when it comes to wireless data,” he added. 

Noting that Jamaica’s internet penetration now sits just under 60 percent, Bowen said Rock Connect is aiming to bring that up to around 85-90 percent. 

“We see it as an opportunity to provide a better quality and more reliable product than is out there now,” he said. 

“Our focus is broadband because you can use broadband to make phone calls, access television, do all kinds of things…. Once you’ve got broadband then you can do anything else,” he explained. 

Bowen said that as a new entrant into a market that already has two strong service providers, namely Flow and Digicel, the company is focusing on unsatisfied demand. 

He noted that the company will be using similar technology to its competitors. 

“All our equipment is 4G/LTE and all the equipment is 5G ready so that when the Government finalizes its 5G strategy for the country we’ll be ready,” he said. 

According to Bowen, Rock Connect’s service will be better quality and more reliable because their entire network will be 4G. 

The former Scotiabank Jamaica boss explained that for competitors, when their 4G/LTE towers have reached capacity, users are then switched over to 3G and if that is full then they are bumped down to 2G and so on. He said that each time this happens, customers lose connection speed and access. 

Bowen said that will not be an issue for Rock Connect because as a new entrant to the market, all of their equipment is 4G. 

Quality over price

As for  rates, Bowen said they want that to be a surprise when they come to market. 

“You can imagine given there is nine months left [until the company officially launches its services] that if we announce rates right now the competition [will have time to adjust],” he said. 

However, he noted that initially, the Rock will have to compete for customers based on price, but their market research showed that quality of service was most important. 

He said that based on multiple focus groups, customers were most concerned about quality service first, followed by customer service, and then price.

With that in mind, Bowen said the company has structured its business model around those principles. 

“In the long run, we don’t wanna be seen as just the least expensive option.  We wanna be seen as the best quality, best customer service, and oh by the way, it’s as good or better value.”

Meanwhile, the founder said Rock has already identified tower locations and is waiting on the equipment to enter the island so that work can progress.

“We have to bring in a lot of equipment. Nokia is our equipment provider and the equipment is being manufactured but there are chip shortages globally and international transportation also has a lot of delays,” he explained.  

The company chairman also said that Rock is still waiting on the Government to complete the legislative aspect of the deal as well. 

Bowen noted that while the Government, which includes various ministries and regulatory bodies, has indicated its support and excitement for the company, the process to get the paperwork completed has been slow.

However, he said, the company is confident that they will have 45-50 percent population coverage, if not national coverage, by the end of the year.

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