THE Organisation of Caribbean Utility Regulators (OOCUR) is expressing concern about the prospect of reduced competition and consumer choice in the region.

The OOCUR discussed the matter during a meeting of its executive council in Barbados on Monday, against the background of the proposed acquisition of Claro by Digicel in Jamaica.

“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 OOCUR in a statement.

It called upon governments to exercise especial caution in markets where no competition and antitrust regulations exist.

“(Governments) 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,” said the regulators.

Information minister Daryl Vaz said last week that he is consulting with the Office of Utilities Regulation (OUR) and the Fair Trading Commission (FTC) on the proposed deal between Digicel and Claro. This after Digicel announced that it has signed an agreement with América Móvil to acquire its Claro business in Jamaica, and to sell to América Móvil its businesses in Honduras and El Salvador.

Vaz said that he instructed the OUR to meet with Dicigel and Claro to learn more about the deal, “because up until now, we don’t know”.

“It’s a commercial arrangement and therefore we would never want for the Government to drag its feet. I am hoping that in short order we can get to the stage where a decision can be made,” he explained.

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