(Jamaica Gleaner) The country’s two cellular service providers have been engaging in a verbal tussle following revelations last week that former Prime Minister Andrew Holness reversed a precondition of the Digicel-Claro merger.
“We believe that Mr Holness’ removal of this critical condition, without the passing of the emergency legislation to safeguard the industry, has grave implications for the future of Jamaica’s telecommunications industry,” LIME said in a statement on Saturday.
Twenty-four hours later, Digicel went on the offensive saying LIME must stop its “outrageous public bashing of government officials and focus instead on fixing its own lacklustre business performance”.
Digicel CEO Mark Linehan said, “LIME should not be looking for the Government to fix its problems but would be better served spending its time focusing on fixing its internal problems rather than gnashing its teeth and complaining to all and sundry about the perceived injustices meted out to it.”
Free ride
Late last year, Holness changed the provision requiring Digicel to operate two separate networks as part of its takeover of Claro.
LIME said the decision grants Digicel “a free ride considering that virtually the same token and wholly inadequate rate change already condemned as ‘unimpressive’ was subsequently accepted by Mr Holness and, in our opinion, this is tantamount to a betrayal of the Jamaican consumers who are desperately seeking relief in this harsh economic climate”.
LIME has called for the new Government to immediately implement the emergency legislation and overhaul the regulatory framework of the telecommunications industry.
“We are asking the Government to take this action – with extreme alacrity – in the interest of Jamaican consumers as well as all current and any future telecoms service providers,” the company said.
Consumers benefit
In the meantime, Digicel yesterday said the deal was in the interest of consumers. It also said Holness followed the letter of the law in his approval of the deal and lifting of prior conditions.
“Digicel took great pains to ensure that its acquisition of Claro Jamaica would benefit consumers across Jamaica by proactively and voluntarily offering to reduce its cross-network rates for both prepaid and post-paid customers by J$3.50 per minute peak rate reduction and a J$2 per minute off peak rate reduction on calls to the other network,” Digicel said.
“This represents an up to 20 per cent reduction on the previous rates. Digicel further voluntarily committed to investing a further US$30 million in the roll-out of islandwide 4G Mobile – on top of its existing investment of US$1 billion in Jamaica to date – to relinquishing spectrum, and to bringing Internet service to schools and post offices in remote areas of Jamaica outside the remit of the Universal Access Fund,” it added.