THE Digicel/Claro deal has elicited much debate and a number of letters have been prominently displayed in this newspaper. Two letters stand out: “Don’t tie the competition’s hands behind its back” dated Wednesday, April 27, 2011, and the other last week, “Disingenuous Mr Edwards,” dated Wednesday September 21, 2011.

All writers know that their work is subject to scrutiny, and rightfully so. If someone should take issue with an article penned by a writer then that writer needs a broad back.

It did strike me as odd, though, that both pieces — the first by Martin Bailey of St Andrew and the second by David Headley of Kingston 10 — had no address or e-mail details for that matter. Both displayed an incredible knowledge of the telecoms business, far beyond the common layperson’s understanding. Where did these letters come from?

The April letter mentioned my name an impressive 15 times in what can best be described as a full-page opus. The second and more recent letter, at 412 words, mentions my good name no less than nine times.

And now to the heart of the matter. My article: What Claro/Digicel deal means for the local telecoms — Part 1 emphatically states: “To return to a monopolistic situation after 10 years would indeed be detrimental to not only mobile telephone customers but to the industry. At this critical time to the economy, FDI is needed which can generate much- needed jobs. To hold the view that this deal would herald such a return is a disservice to LIME who has been operating in Jamaica for decades and at one time was the market leader.

“It currently has over 700,000 mobile customers and in effect is the number two player in the market. It must now focus on regaining market share and figure out how to attract subscribers to the brand.”

These are words I stand by. LIME has lost its competitive edge primarily because it is not used to having to compete and win market dominance in Jamaica. Its competitive muscles have atrophied as a result of the unassailable monopolistic position it enjoyed for decades. Subscribers left the brand in droves. Why? Because Digicel offered a better service, lower prices, a sexier brand, and it definitely became the preeminent corporate citizen in Jamaica. Cable & Wireless — now LIME — was slow to react because it felt it didn t have to. The company paid scant attention to the competitive threat. It was rather like how IBM got usurped by Hewlett Packard and then Apple.

When Digicel entered the market ten years ago, many wrote them off as being unable to compete with Cable & Wireless. I distinctly remember corporate Jamaica sniggering and potential investors giving them short shrift. Today it is a different story. How did Cable & Wireless allow this to happen? Why did it rest on its laurels and surrender its position? Why was its management so lacklustre and not responsive to the clear and present danger and why has that position remained so for a decade?

It was said that when Claro entered the market, it would dislodge Digicel from its perch. Three years later Claro, despite its “J$4.99 per minute, you can put your family and friends in it” offering, it has had to retreat, due to its inability to permeate Digicel’s impenetrability. LIME and Claro at one point attempted to join forces on rates, but that too proved futile. Digicel has over two million subscribers in a population of 2.7 million and has arrived at this in only 10 years.

Digicel took the opportunity to acquire Claro’s operations in Jamaica which further enhances its dominance. It will look to now rationalise its operations, unify and update its network. It has made a number of concessions which have failed to appease LIME. One will never know what LIME’s position would have been if it in turn had acquired Claro’s operations in Jamaica. Would it have been as magnanimous to its competitors as it would like Digicel to be? Then again, why did it not buy Claro’s Jamaican operations and thereby bolster itself in an effort to capture greater market share?

LIME must look to up the ante and drive subscribers to its network. It obstinately maintains that the regulatory playing field is uneven and gives Digicel an unfair advantage. But hang on a minute, did it seek to lower its obscenely high rates ten years ago? Did it heed the entreaties of its customers that its prices were exorbitant while its service remained pathetic? The regulatory playing field was reset precisely to prevent an unfair monopolistic situation and I stress unfair. Digicel’s position is not due to an unfair advantage; rather it is due to its ingenuity at beating out the competition and Jamaicans opting to go with Digicel rather than other operators.

I and most of us working in corporate Jamaica of a certain age can remember going to the Courtleigh Hotel’s “Mingles” on a Friday evening and being unable to get a cellphone reception, right in the heart of town. Back then we all had those unattractive Nokia phones because there was no choice; we had to settle with what Cable & Wireless gave us. In those days before Digicel entered the market, the local rates were US0.42 cents per minute for local calls. Bear in mind there was no per second billing and customers paid for incoming calls. Cable & Wireless did nothing to reduce these high rates then. Today they are up in arms because Digicel’s rates — which have remained the same for the last 10 years, at J$17.50 are deemed too high and should be reduced. And I’m disingenuous! Please! The way I see it, Cable & Wireless’ rates 10 years ago were more than twice as expensive as Digicel’s rates are today. I do not claim to be a business genius or possess an unusual insight into how best to run a corporation, but it ain’t hard to tell what’s wrong with this picture! It renders LIME’s argument more leaky than a kitchen sieve!

Despite Carlos Slim’s billions and a subscriber base of 129 million Claro, was unable to prevail in Jamaica. Cable & Wireless, despite “owning” the market for decades, was also unable to prevail. Rather than crying in its milk it must concentrate on getting people to move onto its network. Playing the hapless victim does not inspire people.

In the Supreme Court High Court earlier this week, Judge Bryan Sykes rejected two applications from LIME which sought to block Digicel’s acquisition of Claro Jamaica which was approved by the Prime Minister in a statement to Parliament on August 30, 2011. Given the situation this comes as no surprise. LIME had been seeking judicial review of the prime minister’s approval of the transaction, claiming that the prime minister had exercised his power “unlawfully” and to compel the Fair Trading Commission to seek an injunction to halt Digicel’s acquisition of Claro Jamaica. Further, LIME had tried to insist that regulatory changes should be introduced in advance of any transaction approval.

In rejecting LIME’s application, the judge noted that the prime minister had followed the law and taken consumer interest into consideration in giving his approval of the transaction.

Commenting on LIME’s attempted court action, Richard Fraser, head of Legal and Regulatory Affairs for Digicel Jamaica, said: “We welcome this decision — the reality is that LIME has been engaged in a cynical attempt to block a deal that is clearly permissible by the law — a fact which has been supported by this judgement.”

LIME is in the unenviable position of losing J$1.3 billion in a quarter, a horrendous performance by any standards. It has poured money into a number of “dancehall stars” and into mobile television which has failed to gain any significant traction. Added to that, it has seen its operating expenditure increase by 26 per cent year on year. How long can it continue to register this woeful performance and what does its masters in London make of it? How long will they be patient?

Seeking answers to these questions, Martin Bailey — whoever he is — says I am disingenuous for failing to acknowledge Digicel’s “unhealthy market dominance” and ” high cross-network pricing regime”.

David Headley on the other hand declares, “Don’t tie the competition’s hand behind its back.” He writes: “The article entitled ‘Competition and the Telecoms Arena by Mr Al Edwards which appeared in the Caribbean Business Report on April 21, clearly demonstrated a lack of understanding by him of competition issues and abject failure of the regulatory environment to continue to facilitate competition in Jamaica’s telecommunication market.”

I understand all too well, Mr Headley, the vicissitudes of competition, the fluctuations of the market, rather than any intrinsic truth or beauty or value — or for that matter, any lack of truth or beauty or value — that determines a competitor’s fate.

Rather than bitching and moaning, LIME should subscribe to the aphorism, “Carpe diem, quam minimum credula postero” or in plain English, “Seize the day, trusting as little as possible in the future.” Get busy living or get busy dying. Your fate is of your own making.