Put your money where your mouth is, Digicel, don’t appeal OUR’s ruling!
Dear Editor,
While Digicel claims to be pro-competition, the shine has definitely come off the “new entrant” ball. LIME is therefore not surprised by Digicel’s June 8 letter to the editor related to the recent ruling of the Telecommunications Appeal Tribunal. We wish to clarify the issues raised by Digicel in that letter.
Firstly, LIME did not craft the headline claiming victory over Digicel, but understands that media may well have inferred that view from the pleasure we expressed at the ruling, and the potential benefits we anticipate for our customers. In fact, LIME believes that while the victory was the OUR’s, the ultimate beneficiary will be the Jamaican mobile customer!
Secondly, LIME does not dispute that all three mobile operators were found to be dominant. Unlike Digicel, however, LIME was thrilled at the ruling because LIME had already taken the initiative to lower its termination rates (one of the main potential implications of the ruling) charged between itself and Claro, and has been willing for more than a year to do the same with Digicel. Digicel has refused to reduce the termination rates it charges LIME, and therefore likely fears the OUR mandating it to do so. To be perfectly clear, LIME is pleased that the OUR may now force Digicel to lower its termination rates and that this may in turn allow lower customer charges for calls to Digicel.
LIME is also pleased because it has long believed that Digicel is abusing its dominance in call termination on its network. LIME has complained to the FTC and sued Digicel in the Supreme Court because of it. Digicel, however, has been using technicalities and the system to delay any decision that might cause it to reduce its termination rates or prevent it from anti-competitive pricing practices.
We will not be surprised if they now try to take the matter to the Supreme Court to use another court strategy to delay. LIME therefore wishes to challenge Digicel’s professed belief in competition by saying – if you really believe in competition, then don’t appeal this ruling! Let the OUR take its victory and do its job to the benefit of all Jamaican telephone users.
Geoff Houston
Managing Director, Jamaica & Cayman
2-6 Carlton Crescent
Kingston 10
