Business
Digicel Jamaica locks horns with regulator over drop in mobile termination rates
In the release, Richard Fraser, head of legal and regulatory affairs for Digicel Jamaica, said “The unfettered powers granted to the regulator are of extreme concern given that they effectively install the OUR as judge, jury and executioner. The OUR’s action in terms of setting interim mobile termination rates with no regard for due process and procedural fairness cannot go unchallenged, as the medium and long-term effects of actions like these will be detrimental to the telecommunications industry and to the wider Jamaican economy.”
Digicel Jamaica also noted that it was “extremely concerned” that the first action of the OUR was to reduce international mobile termination rates which has “no benefit at all for Jamaica”.
The Effect On the Economy of Jamaica
The telecommunications company said this change would be “very costly to the country, a view which Digicel Jamaica, Landline Internet Mobile and Entertainment (LIME) and Flow are in full agreement as a matter of public record.”
According to the release: “This move by the OUR will deprive local telecommunications operators and the Jamaican economy of much-needed revenues and will have the impact of lowering investment in this vibrant sector, making job creation even more difficult at this critical time.”
However, LIME on Tuesday declared that it would join OUR in any defence it may mount against Digicel Jamaica as an affected party.
(More: Wireless war: LIME takes credit for Digicel rate drop)
Last week, LIME announced drastic cuts to its call rates based on the OUR mandate.
