LIME, Claro in 'cross-rate' agreement to cut charges

Published: Wednesday | September 2, 2009



Left: CEO of Claro Jamaica, Alejandro Gutierrez. Right: LIME Country Manager for Jamaica, Geoff Houston.

LIME Jamaica has slashed the rates for its mobile customers calling Claro Jamaica's network by 42 per cent, saying its intent is to "eliminate the long-standing industry tradition of high cross-network calling rates."

The rate cuts became effective September 1, dropping from $12 per minute to $7 for post-paid customers; while the cost for subscribers with prepaid packages has been reduced to $8 per minute from $10 and $12, depending on their calling plan.

The pact does not include market leader Digicel, which is engaged in legal battles with both LIME and Claro, and whose customer base of two million is about two times that of its rivals combined.

LIME said agreements of this nature are negotiated deals.

"This customer benefit has been raised several times directly with Digicel," said LIME Vice-President of Corporate Communications, Errol Miller, adding that the outreach led to no agreement.

"The matter has also been raised through the regulator," Miller said.

Subscribers

The Digicel subscriber will continue to pay out $17.70 for each minute spent on the network of LIME and Claro, whose subscribers in turn pay $12 to connect to Digicel's.

A Claro customer spends $7 per minute calling the LIME mobile network.

"We are pleased to be able to offer our customers lower and more affordable rates to call Claro and also to make it more economical for customers on Claro's network to call LIME," the former monopoly provider's country manager, Geoff Houston, said in a press release.

Claro and LIME, who are trailing Digicel in terms of market share, have recently joined forces as the war rages on for control of the lucrative mobile market. Two months ago, both signed an agreement to share cell tower sites across Jamaica after a very public tussle between Claro and Digicel in which the former had accused the latter of reneging on a 'handshake' agreement to share tower space.

For its part, the Office of Utilities Regulation was unable to speak immediately to the matter. The relevant technical officers were unavailable.

"High cross-network call charges are a burden on telecoms consumers because they literally penalise customers for calling another network," said LIME's press release.

mark.titus@gleanerjm.com