(Jamaica Observer) The Organisation of Caribbean Utility Regulators (OOCUR) suggests there is a prospect of market failure arising from the acquisition of mobile telephone operator Claro Jamaica by rival Digicel Group and has called on regional governments to closely monitor the situation in the interest of consumers and the economies in general.
“The view that there is a real prospect of market failure and the re-emergence of monopolies in the provision of telecommunications services has to be closely monitored, as the implications for the smaller markets, in particular, could be disastrous where the gains that have been made through the introduction of competition could be quickly eroded,” said the executive council of the OOCUR.
In a release, the council said it met in Barbados on Monday and made the observations against the background of the proposed merger “and the possible impact that this might have on competition and consumer choice in the largest market in the English-speaking Caribbean.”
Consequently, the council said, “the regional regulatory group believes that governments, particularly those of jurisdictions where there are no competition/antitrust regulations, must be particularly mindful of the benefits to consumers, and the national economies as a whole, that might be lost as a result of the lessening of competition in the telecommunications sector.”
The Jamaica Government is proceeding cautiously on the deal. Information Minister Douglas Vaz has asked the Fair Trading Commission and Office of Utilities Regulation to ferret out the details to “ensure fairness and transparency”, but said he does not want to delay what is essentially a commercial transaction between private parties.
“I have also instructed that they meet with Digicel and Claro to get a better understanding of what is the basis of the deal, because up until now, we don’t know, and those consultations will continue,” Vaz told reporters last week.
“It is a commercial arrangement, and, therefore, obviously we would not want the Government to drag its feet. But there has to be a level of due diligence done and I am hoping that, in short order, we can get to the stage where a decision can be made.”
Jamaica’s OUR is a member of OOCUR. The regional body
