Digicel-Claro deal receives approval

30 Aug 2011

The Jamaican government has approved the long-awaited merger of Jamaica’s largest and smallest telcos by subscribers; Digicel Jamaica and Claro. The combined company will make up more than three-quarters of Jamaica’s wireless market, whilst the sole competitor, Cable and Wireless’ subsidiary LIME, serves the rest. The government has already faced criticism for its decision, as the deal lessens competition in the market and the specific conditions for the approval have not been made public.

As previously reported by CommsUpdate, in March 2011 Mexico’s America Movil signed a deal with Bermuda’s Digicel Group to acquire 100% of Digicel’s operations in Honduras and El Salvador. As part of the transaction, America Movil will sell Jamaican subsidiary Claro to Digicel.

Jamaica, America Movil Jamaica (Claro), Digicel (Jamaica)