Not good for telecoms market - Digicel-Claro deal could hurt consumers, says Opposition
Published:Sunday | March 13, 2011 | 12:00 AM
The Opposition People's National Party is raising concerns about the expected removal of one of the telecommunications companies from the market, saying that the decline in competition could affect consumers.
Digicel on Friday announced that it had signed an agreement with America Móvil to acquire its Claro business in Jamaica, and in return, the telecommunications giant would sell its businesses in El Salvador and Honduras to America Móvil.
This latest development has not been accepted by Opposition Spokesman on Industry and Commerce, Phillip Paulwell, who said he would be meeting with Digicel this week to look at the full ramifications of the deal.
"The objectives of having a competitive marketplace were twofold. We wanted to ensure Jamaicans have access to the latest in telecommunications technology, and also that the prices be competitively derived, and we are seeing tremendous success in both areas," he said.
However, he argued that with the removal of Claro, the Government would have to look at other means to control the marketplace.
"With the removal of a player like Claro, it is my fear that we are moving to a situation where competition is going to be obviously lessened.
"Additional safeguards will be necessary to protect the consumer," Paulwell added.
Questioned delay
He questioned the delay in the implementation of a new policy, which was signed off by him and minister with responsibility for information, Daryl Vaz, about a year ago to provide greater safeguards for consumers.
"The policy would allow consumers to use the same number across networks. It would also deal with identification of network so that when someone is calling another network, they will know before they start being billed, and other consumer protection that ought to be put in place is not yet in place," he said.
Efforts to contact Vaz up to press time proved futile as his phone rang without an answer.
When contacted by The Sunday Gleaner, telecommunications provider LIME remained quiet on the transaction. Camille Taylor, LIME's communications manager, said, "There is no comment at this time."