Last Thursday, Digicel announced that Jamaica would stand to benefit from its acquisition of Claro Jamaica.
This follows the the Jamaican government's approval of the Digicel Claro takeover deal, late last year.
The benefits to be accrued to the Jamaican economy include Digicel's:
1) Topping up of its current JMD $1 billion investment in Jamaica, by another $30 million, to further rollout its 4G services across the island
2) Reduction of interconnection charges between itself and other mobile providers in Jamaica.
Now, this is welcome relief for especially Digicel customers, as it was feared that Digicel's dominance in the mobile telecommuications market (now at over 76% market share), would auger its retention of its high interconnection rates.
According to press release, "JAMAICA TO BENEFIT FROM DIGICEL ACQUISITION OF CLARO":
"Effective January 4, for prepaid and January 12, for postpaid, customers will benefit from a JMD $3.50 per minute peak rate reduction and a JMD $2 per minute off peak rate reduction on calls to LIME".
==========Update January 12,2012========
So Digicel's prepaid customers will now pay $14.20 (peak) and $13.80 (off peak), to speak to customers on the LIME mobile network...
...and on January 12, postpaid customers will pay $14.00 (peak) and $13.00 (off peak) to speak to customers on the LIME mobile network.
=====================================
NB: Nothing has been said re the reduction of interconnection charges from LIME mobile to Digicel.
3) Plans to value Claro assets in Jamaica.
4) Planned dismissal of 254 Claro employees. However, 150 of them will be offered fixed contracts, plus generous bonus packages.
All these Claro staff will be offered four (4) weeks of pay above what is required and continuing health care, lunch allowances and phone credit benefits for a period of three (3) months.
Additionally, Digicel will be encouraging Claro employees to apply for any vacant positions within Digicel.
The staff cuts are to be made late January 2012.
Gillian
Sources Include
1) Television Jamaica, January 6,2011
2) Press Release "JAMAICA TO BENEFIT FROM DIGICEL ACQUISITION OF CLARO", December 5,2011
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