LIME takes legal action

23 Sep 2011

Cable & Wireless subsidiary, LIME Jamaica has begun litigation to overturn the prime minister’s approval of the merging of LIME’s local rivals Claro and Digicel. The UK-based telco is contending that Prime Minister Bruce Golding’s decision was unlawful and was an improper exercise of his power. Local news reports that the Supreme Court has temporarily postponed the case whilst LIME serves its application to all relevant parties: Digicel, Claro, the Attorney General and the Fair Trade Commission (FTC).

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 agreed to sell Jamaican subsidiary Claro to Digicel, and received approval for the transaction in late August this year. As a result of the merge, Golding has said that it would be necessary to fast-track amendments to the existing Telecommunications Act, and hoped to have the changes ready to be reviewed by parliament by early October.