Digicel drops cross-network tariffs, further squeezing LIME

5 Mar 2012

Jamaica’s largest cellco by subscribers Digicel Jamaica has cut cross-network tariffs to JMD8.99 per minute from JMD14.20 per minute (to USD0.10 from USD0.16). The move further cements Digicel’s dominance of the wireless segment, following its acquisition of rival cellco Claro from America Movil. Digicel’s remaining competitor, LIME Jamaica currently charges its users JMD12 per minute for calls to Digicel. The two rivals have been locked in disagreement over the issue of rebalancing wholesale mobile termination rates (MTRs).

Meanwhile, the Fair Trade Commission (FTC), Jamaica’s competition regulator, is presenting its case to the Supreme Court, arguing that it has legal standing to challenge the merger of Digicel Jamaica and Claro Jamaica. Digicel has filed its own case against the FTC, challenging its right to halt the acquisition. The litigation from the FTC is likely to be too little, too late, however as the merger has almost been completed. Originally scheduled for 1 March, Digicel will be closing down the networks previously operated by Claro on 9 March.

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