I refer to the letter, “Is this a wise decision, LIME?” in the Jamaica Observer of June 18. It is imperative that we understand basic consumption and consumer behavioural patterns. There are two rules of thumb that make LIME’s unprecedented rate cut not just financially viable, but also socially feasible. The laws of consumption – tested and proved – state that when there is a decline in prices, there is an inevitable increase in consumption levels. Second, the Jamaican economy takes highly to the sad phenomenon of a free-for-all or anything close to such. With that in mind, we welcome LIME’s very competitive ratings with open arms.

In previous years, LIME has tried to regain the trust of the Jamaican market in the mobile arena, using the first-mover strategy in innovation. The telecom company also tried the just noticeable difference (JND) with was almost fruitless. Studies done on LIME Jamaica showed that continued re-investment in the company led to the annexation of dividends to shareholders. It was therefore a deliberate move for LIME to compete using predatory pricing, thus cutting into its profits to extend market share and ultimately disarm competition.

Mention of CLARO using a similar strategy that proved futile is a matter of making an uninformed assumption. CLARO and Digicel were never engaged in a hostile takeover. Digicel was a friendly suitor which had given up two of its international markets for CLARO’s Jamaican market share. With that made clear, LIME stands firm as a force to be reckoned with.

On the other side of the pie, customers ought to welcome the lower rates, especially in view of the drastic fall in consumer spending power and our unmitigated love for communication. I have been one of the many to switch. From a marketer’s point of view, LIME is offering value at an undeniably competitive rate. Welcome aboard, LIME!

Jodi-Ann Blake

Northern Caribbean University

Mandeville, Manchester

Jblake11@stu.ncu.edu.jm