Will consumers benefit from Digicel acquiring Claro?
Author : teriannBy now everyone knows that Digicel has acquired American Movil, otherwise known as Claro.
It has been said that exchange is no robbery and so these two heavy weights in the telecommunication industry have inked a deal that leaves them satisfied.
There has been a lot of speculation that Claro had steadily been luring customers away from Digicel with their low call rates and free phone offers. So now Digicel seems to be heading for almost full control of the majority of the market.
Of course, the question that is on everyone’s mind, is will the consumer benefit from Claro’s departure?
I have always been a believer in competition and the ability to choose. We have no guarantee that Digicel will keep the rates that were introduced by Claro. This move by Claro might also result in job loss for some workers in the industry.
So what’s your take on the issue? Let me hear from you!
Related article http://mobile.jamaica-gleaner.com/gleaner/20110313/lead/lead4.php.
Teri Ann Renee Paisley (Gleaner on-line writer)
Tags: call, consumers, increase, rates, telecommunication
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18 Responses to “Will consumers benefit from Digicel acquiring Claro?”
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I beleive that its a bit early to say, if and how consumers will benefit from this deal.
Yes, it removes some of the competition from the market place.
I am at a loss to see how the consumer benefits!
No doubt the acquisition of Claro by
Digicel will leave this nation poorer
-in so many ways. Competition required
To keep rates low will be almost
Eliminated, not to mention job losses,
EVERYONE HAVE TO EAT A FOOD CORPORATE ENTITIY GANG UP ON US ALL CIRCLE US LIKE BUZZARD SUCK OUT OUR EYES CAUSE WE WANT FONE FI CALL MORE GAL AND BWOY, BACK TO DIGICEL COMPETITION DONE FOR NOW
Naturally, competition is good as each organization tries to out do the other. Both consumers and organization benefit from competition.
This acquisition might bring Jamaica back into the dark ages when cable and wireless was the only player in the market.
Dont forget DIGICEL is American OWNED. And for those who dont KNOW. The JLP is always BACKED by the AMERICAN GOVERNMENT. This is POLITICAL CORRECT, and that is FROM the SEAGA ERA!
CoolRCool, for the record Digicel is NOT American owned! Mr. Obrien is IRISH! Two very different countries! Look at a map and get your facts straight!!! Thank you. This has been a public service announcement brought to you by the educated!
coolrcool check u facts,digicel is a company from ireland,america has nothing to do with it and dont own any of it
No doubt many if not all jobs will be lossed. Digicil is an established entity which I highly doubt will need anything from Claro as they would have has these structures pre-established. Dealers will be at a loss as beside very Digicel store is a Claro store. Now tell me, why would you have the country crowded with Digicel stores?
Rates will definitely be increased as there’s no alternative. Digicel’s rates were high before Claro and with the competition, their rates decreased but still did match up to Claro’s rate of $9.99 pm.
A meeting last week between Digicel and Claro revealed that of these three concerns: Claro’s dealers, Claro’s employees and Claro’s customers, Digicel said they are only concerned with the customers. Come May 31, Claro will officially be no more, so we do have some time before any major changes. Additionally, Digicel has promised to continue with Claro’s free nights service for three months after May 31; after that ‘di rope mawga and pop’until then, let us lavish in the ‘claroriffic’ experience while we can cuz VIP service will be our next resort.
The acquisition of Claro by Digicel is in breach of the Fair Competition Act on its face. Very few academics in Jamaica are sensitive to the anticompetitive implications of Mergers and Acquisitions and therefore the implications for compliance with the Act. Lime ought properly to bring an action to test it. Of course, it would need expertise in antitrust/anticompetitive agreements to move forward with such a challenge. Had the Fair Trading Commission any true teeth or purpose, the acquisition would not have gone forward.
Someone ought to start looking at the statistical and market information so that questions may be raised.
( Reply to CoolRCool)Comparing Seaga to Mr. Golding is blatant ignorancy,where is your Brains , Top or Bottom ?, Digicel is Irish owned and for your information Mr.Golding is Jamaican and Seaga is and will for ever be an American . One is Apple and the other Lime .Competition is always best ,and have a nice day.
CoolRcool, thanks for reminding us that Digicel is American owned. No doubt this will be brought to the attention of Chairman Denis O’Brien, who will certainly be surprised that unbeknown to him, Ireland became the 51st State of America.
The fact is folks, Claro wasn’t making any money and wasn’t growing despite all the freeness they advertised. They came with the idea to challenge Digicel only and lost the battle and the war. They didn’t see Lime as important and therefore focused on Digicel alone.
They didn’t count on Digicel’s customers’ loyalty nor their superior service and so they lost and has decided to swap with Digicel, their Jamaican market for Digicel’s Central American Market.
I am a Digicel customer and will be watching this swap closely to see if Digicel will use market dominance to do whatever they want.
My question to cool carol is, how politics come inna dis, you full of politics so till you fool fool…….ha ha ha ha……………What JL/PNP have to do with a entity sell their share of a company, JAKC SAS unscramble and thats what u are.
Benefit????…..in terms of technological or pricing?
Jamaica will be worse off if this aquisition goes through. If Claro wants to leave, I think the Govt should let them sell to another competitor and not Digicel. We need the competition and it would be harder for any other telecommunication company coming to Jamaica to compete with the merged company. Seems we have forgotten the days when CW was boss. Funny how LIME is bawling though.
Well Richard, the question is will consumers still enjoy the same rates or will Digicel raise them?
My view is similar to lots…its only fair that competition be encouraged. This aquisition is pure selfishness on both companies part. Digicel went into American Movil territory which encouraged them to come and attempt to hit Digicel where it hurts, aquire Jamaican clients.
Now that the game has played its time and both companies are losing from the extended venture, Digicel in Movil’s market and Movil in Digicel’s market, they decide to swap out companies so they can go back to being relaxed “owners” of their respective markets.
Its all a game of numbers people. For those who said Claro was making “No Money”, there is no truth to that. They entered Jamaica knowing that Digicel had 1 out of 3 person statistic and that is a hard game to beat. However, because Carlos, one of the world’s richest man (top ten Forbes list), wanted to hit back he just spent some change on to try to combat Digicel.
As for how it affects Jamaicans, Digicel has not been known for extreme unfair game so the most they will do is merge a few stores that are in immediate proximity and fire few ppl and spend a bag of money on rebranding and then everybody will be on the their rates and plans.
My real questions are, will the Claro phones work on Digicel network? Will each person with a Claro phone need to dump their phones? Whats the phase out or transition plans? If and when these plans are made, when will they be made public so that people can plan accordingly?
I totally agree as those who use Claro’s services need to be given enough information about the merger.