{"id":5033,"date":"2012-10-17T08:53:47","date_gmt":"2012-10-17T13:53:47","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=5033"},"modified":"2012-10-17T09:09:19","modified_gmt":"2012-10-17T14:09:19","slug":"digicel-claro-merger-good-jamaica","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2012\/10\/digicel-claro-merger-good-jamaica\/","title":{"rendered":"Has the Digicel-Claro merger been good for Jamaica?"},"content":{"rendered":"

A look back at the events surrounding the sale and subsequent merger of Claro Jamaica with Digicel Jamaica, in light of the recent decision of the competition regulator in El Salvador.<\/em><\/p>\n

\"http:\/\/en.wikipedia.org\/wiki\/Am\u00e9rica_M\u00f3vil\"<\/a>Around two weeks ago, the press within the region began to draw attention to the decision of the competition regulator in El Salvador not to approve the proposed sale of Digicel El Salvador to Am\u00e9rica M\u00f3vil. The regulator, the Superintendence of Competition<\/a>, was of the view that<\/p>\n

\u2026 the merger would “adversely affect the dynamics of competition” and “welfare of consumers” in the mobile and fixed telephony market\u2026 the Claro\/Digicel acquisition would create “legal, economic, strategic and technical” barriers for new entrants\u2026 (Source: The Gleaner<\/a>)<\/p><\/blockquote>\n

The transfer of Digicel\u2019s Salavadoran operations to Am\u00e9rica M\u00f3vil was part of a larger deal comprising Digicel Honduras and Claro Jamaica. Digicel Honduras would also be transferred to Am\u00e9rica M\u00f3vil, whilst Claro Jamaica, which is owned by Am\u00e9rica M\u00f3vil, would be transferred to the Digicel Group Limited (Digicel). The Salvadoran Superintendence of Competition\u2019s decision not to approve the transfer has prompted us to revisit the transaction in Jamaica, and highlight some of the resulting consequences.<\/p>\n

A look back at the sale of Claro Jamaica to Digicel<\/h3>\n

\"\"<\/a>On 11 March 2011, it was announced that Digicel had purchased Claro Jamaica, the country\u2019s third mobile operator. In our post, Is the sale of Claro to Digicel good for competition in Jamaica?<\/em><\/strong><\/a>, we noted the transaction would effectively reduce the number of mobile operators from three to two \u2013 Digicel Jamaica and LIME Jamaica. However, since at that time the deal would have been subject to ministerial\/regulatory approval, we also highlighted key regulatory issues that ought to be considered, such as the impact on<\/p>\n