Telecoms find one more reason to quarrel

McPherse Thompson, Assistant Editor - Business

Mobile market leader Digicel Jamaica has rebuffed suggestions of rival LIME Jamaica that by offering Claro customers an opportunity to switch to its network while retaining their existing numbers it was introducing local number portability (LNP) through the backdoor.

LIME has suggested that if Claro customers were allowed to switch to the competition while keeping their numbers, it "would be a clandestine and privileged introduction of local number portability, which appears to have been specially granted only to Digicel."

But Digicel, in an emailed response to queries by Wednesday Business, said "this is not the case", explaining that "Due to our acquisition of Claro in Jamaica, Digicel inherited the Claro customers as well as the numbers."

A different view

The Ministry of Mining, Energy & ICT said there is no provision in law to prevent local carriers from establishing a platform to port phone numbers from one network to another.

But LIME takes a different view.

"LNP cannot be unilaterally introduced into the market. LIME is ready and willing to introduce LNP. However, all the service providers would need to be in agreement and to facilitate its introduction. There are many technical and non-technical issues that would have to be discussed and agreed on before LNP becomes a reality," said Rochelle Cameron, legal & regulatory head at LIME.

Digicel, having acquired the Claro business in Jamaica, announced that it will be shutting down that network on March 1.

The company has since been providing sweeteners valued at up to J$2,000 for each customer who switch to the Digicel network. Digicel has also advised Claro customers that they will be able to retain their numbers when they switch.

LIME is offering inducements valued at J$1,000 to each Claro customer who surrender their SIM cards and switch to its network, but is not offering to port their telephone numbers.

It was Digicel's encouragement to Claro customers to switch and retain their numbers that placed the issue of number portability on the front burner again and, apparently, led to a Facebook campaign under the slogan 'Jamaicans for Cell # Portability'.

LIME, which holds second place to market leader Digicel in terms of mobile customer base, has consistently pushed for the introduction of number portability. But Digicel has largely remained silent on the issue, apparently because it has more to lose than gain under such a system.

Digicel's subscriber base amounts to more than two million. LIME's is said to be around 700,000, and Claro Jamaica had 517,000.

The Office of Utilities Regulation (OUR) has refused to weigh in, saying when asked to comment on LIME's claim that number portability was being secretly introduced, that it would "make no comment on the issue at this time".

The OUR's role in the introduction of number portability, it said in emailed responses to questions, "is to do the cost benefit analysis to be able to determine the feasibility of the introduction of such a service".

The cost benefit analysis is also optional, and the government's role is largely limited to moral suasion, said the Ministry of Mining, Energy & ICT, but the OUR said "The results of that study will inform any decision that is made."

The OUR could not say to what extent there will be an overhaul of the regulatory framework for the telecoms industry, given that the Claro network will be shut down. The acquisition is being challenged in court by LIME and the Fair Trading Commission.

In response to queries, LIME said the OUR has started the consultation process for the introduction of LNP by engaging a consultant to conduct the cost benefit analysis and to get relevant data from the industry.

The next phase should be for the OUR to issue the public consultation document.

According to LIME, "it is noteworthy" that the OUR's 2011-2014 corporate plan laid out a timetable to make a determination by March 22, 2011 and implement LNP by September 19, 2012.

The more current corporate plan for 2012-2015 now says the timeline for LNP is for a determination by May 4, 2012 and implementation by July 5, 2013.

Lobbying for lnp introduction

Asked if it has sought to persuade other players to introduce LNP, LIME said it has tried to convince the OUR to progress the consultation process that will pave the way for its establishment.

"We have also made presentations to various industry forums ... and we will continue to lobby for its introduction and other critical remedies needed to address the current irregularities in the telecommunications industry," said Cameron.

Among those issues is the need for LNP as a key element to achieving a level playing field in the market. In parallel with consulting on matters directly related to LNP of both a technical and non-technical nature, the OUR also needs to ensure that other regulations that are critical to its successful implementation are in place, she said.

These include low termination rates, prohibitions on price discrimination, regulation of on-net and off-net pricing of the dominant carrier.

"We must also make the point that with regard to the Digicel/Claro merger, the Government's removal of the condition for Digicel to operate two separate networks has essentially allowed the introduction of number portability but only for Digicel's benefit," said Cameron.

"This will make it more difficult for LIME to compete for Claro customers. In addition, it begs the question of whether (former Prime Minister Andrew Holness) should have granted approval for the transfer of Claro's licence to Digicel in the absence of regulation of the mobile rates and of equitable LNP in the market."

mcpherse.thompson@gleanerjm.com