Movistar files lawsuit against Claro for unfair practices

26 Oct 2010

Nicaraguan cellco Movistar, which is owned by Telefonica Moviles of Spain, has filed a lawsuit against its sole competitor Claro, according to reports in El Nuevo Diario. The lawsuit, which was filed with the National Institute for the Promotion of Competition (Procompetencia), alleges that market leader Claro has resorted to unfair practices in order to consolidate its market share. It is thought that Claro has undermined Movistar’s business by replicating its existing offers, only at lower tariffs. Movistar has said that the purpose of its lawsuit ‘is primarily to protect the interests of consumers and users, and defend the interests of the company to continue working for the development of telecommunications in Nicaragua’. The document adds that the company ‘sees this as an opportunity for users of both companies to compare and judge what their best options are’. Movistar reportedly has 90 days in which to file evidence of Claro’s misdemeanours, with the Procompetencia scheduled to announce its ruling in January 2011. According to TeleGeography’s GlobalComms Database, Claro is the country’s leading mobile phone operator by subscribers, with an estimated 2.25 million subscribers, or 63% of the market, at June 2010. Movistar recorded 1.32 million subscribers (or 37% of the total) at the same date.

Nicaragua, Claro Nicaragua, Movistar Nicaragua