Digicel loses appeal, call rates could fall
THE Telecommunications Appeals Tribunal has upheld a 2004 declaration – appealed against by Digicel – by the Office of Utilities Regulation (OUR), which declared all mobile phone services providers dominant and could pave the way for lower phone call rates.
Mossel Jamaica Limited, of which Digicel is the trading name, took exception to the ruling that declared it, Claro and LIME, all “dominant in call termination services” – meaning that they have an effective monopoly in charging each other to terminate calls on their respective networks.
High termination rates are held in Jamaica to be a major factor in maintaining both high call rates and market share, since it is cheaper to make and receive calls within any one network. Claro and LIME have both accused market leader Digicel of anti-competitive behaviour in this respect.
The decision frees the OUR to determine whether the companies have impeded the maintenance or development of effective and fair competition in the market.
Under Section 30 of the Telecommunications Act 2000, a dominant phone company is required to provide, amongst other things, interconnection on a non-discriminatory basis with charges being cost oriented.
Section 33 of the Telecommunications Act 2000 also sets out the guidelines to be used by the Office of Utilities Regulation to determine the prices at which interconnection is to be provided by a dominant public voice carrier.