Telecoms war rages on
Leading mobile telephone company Digicel has accused both LIME and Claro of colluding to gain a competitive advantage in the landline market and is calling on
LIME to embrace competition which can only benefit the Jamaican consumer.
However, LIME is categorically refuting allegations made by Digicel that there is collusion between LIME and Claro in setting mobile prices.
LIME Country Manager Geoff Houston dismissed the Digicel claim (which Digicel has lodged as a complaint to the Fair Trading Commission – FTC) as nothing more than a spurious attempt to keep inflated prices in the market and to distract the FTC from applying its energies to constraining Digicel’s anti-competitive practices.
Houston explained that LIME offered Digicel the same reciprocal termination rates offered to Claro and Digicel refused, but it appears that they did not disclose this to the FTC or to anyone else to whom they complained.
But Digicel CEO, Mark Linehan hit back saying LIME’s attempts to defend its monopoly in the fixed-line market is a reflection of the company’s deepening crisis
“We have seen in LIME’s recent half-year results that its Caribbean sales have fallen by 15 per cent year-on-year and they continue to struggle in keeping up with the competition. LIME is now clinging to the hope that its traditional cash cow – the landline market – will keep the ship afloat long enough to complete demerger plans, which ultimately means it has to try to keep prices up.”
Houston added that LIME would not be bullied or deterred from continuing to try to provide customers across Jamaica with the most competitive and most honest rates – despite Digicel’s efforts to prevent this.
But Linehan countered: “Make no mistake, LIME is under investigation for anti-competitive collusion with Claro and its latest press release is aimed at trying to repair the damage by making false and revisionist statements about its conduct.
“Quite frankly, LIME should be reminded that no matter how many times you change your name or your colours, you cannot hide what you represent! Digicel Business has made significant inroads into the Jamaican fixed-line business market – a previously neglected sector that had seen poor service, limited investment and little or no competition before Digicel’s entry into the market.”