The Jamaican government has reportedly said that it will approve the acquisition of Claro’s Jamaican operations by regional operator Digicel.
According to local newspaper the Jamaica Gleaner, the Jamaican prime minister has told Digicel’s CEO that…
The Jamaican government has reportedly said that it will approve the acquisition of Claro’s Jamaican operations by regional operator Digicel.
According to local newspaper the Jamaica Gleaner, the Jamaican prime minister has told Digicel’s CEO that the deal will be approved. He also reportedly said that Digicel will have to honour the terms and conditions of Claro’s licence.
The report also stated that the prime minister will discuss the matter in the country’s parliament today.
Claro is a subsidiary of Mexico-based America Movil.
As a part of the agreement announced by America Movil and Digicel in April, Digicel would sell its Jamaican operations to Digicel, while America Movil would acquire Digicel’s operations in El Salvador and Honduras.
The Gleaner reported earlier in April that the Jamaican government had expressed concern about the deal.
The Minister for Industry, Investment and Commerce, Karl Samuda, was quoted saying said that he was concerned about the emergence of a potential monopoly situation. Digicel reportedly controls 88% of the Jamaican mobile market.
A Digicel spokeswoman told TelecomFinance that the government had not yet made an official announcement, although Digicel expects them to do so this week.
One of Digicel’s competitors in the Jamaican market is LIME, which is controlled by UK-based Cable & Wireless Communications (CWC).
A CWC spokesperson said that it would be premature for the company to comment on the Claro-Digicel deal before an official government announcement. But he added that CWC had previously called for a review of Jamaica’s regulatory environment, describing it as “unbalanced and unfair”.
