We
Jamaicans are now officially on a Flat Rate Calling Rate of JA$5.00 as of
Sunday July 15th 2012AD as announced by the OUR (Office of Utilities
Regulation), the interim Telecoms body until the new body is officially
consolidated.
First
Telecom Provider dazzled us with Talk EZ on Friday June 15th 2012AD that
had on-Net rates as low as JA$2.99 as described in my blog article entitled “LIME's new TALK EZ Plan drops Cross Network Calling to JA$2.99 -
Digicel's Game of Thrones vs LIME Return of the King”
and my Geezam blog
article entitled “LIME drops Cross Network Calling rate to JA$6.99 to kick off a 3
year Battle for Mobile Market Dominance”.
Then
Telecom Provider Digicel
followed suit with a double scoop helping of a “Sweetest Deal” Promotion one
week later on Friday June 22nd 2012AD, which one should note was not
a permanent Rate Decline of JA$2.89”. I say double scoop helping as on Wednesday June 27th
2012AD Telecom
Provider Digicel
also launched their much touted
Mobile 4G, albeit like Telecom Provider LIME, it’s not true 4G.
All chronicled and faithfully
recorded and bemusedly analyzed in my blog article entitled “Digicel's
Sweetest Deal and Digicel Mobile 4G Launched - Challenge to LIME Talk EZ
heralds Postpaid, MRSI via MNP and
Cashless Society Renaissance”
and Geezam blog
article entitled “Digicel launches 4G
Mobile and JA$2.89 Sweeter in a bid - Jamaican Voice + Data Summer Wars.
Telecom
Provider Digicel
was up until Friday July 13th
2012AD disputing the legality of the OUR to set rates on an interim basis in
the Supreme Court based on the newly minted Telecommunications Act that went
into force in May 2012 upon which the ink had barely dried.
Telecom
Provider Digicel
had immediately sought a Judicial
Review of this before courts while launching their “Sweetest Deal” Promotion as
well as claiming that being ill-informed even after having met with the
Minister of Science Technology and Energy and Mining Phillip Paulwell. Thus it
was in essence a case of Natural Justice being denied for them to have been
able to respond to the coming changes.
An opinion Telecom
Provider Digicel
held since February 2012AD as
stated in the article “LIME, Digicel at odds over OUR's proposed $5 termination rate”, published Sunday, February 19, 2012, The Jamaica Observer based on the fact that they were not duly informed of the
changes.
Notwithstanding this and other argument presented by Telecom
Provider Digicel,
Puisne Judge Ingrid Mangatal ruled in favour of the OUR effectively opening the
doorway for Telecom Provider Digicel
to appeal the decision as stated in the article “Court
backs watchdog on mobile rate cut”, published Friday, July 13, 2012 BY PAUL HENRY Crime/Court
Desk co-ordinator, The Jamaica Observer.
Puisne
Judge Ingrid Mangatal handed down her Judgment in a fifty five (155) page
document, summarized as thus quote: “Digicel has not made out a case that it
will suffer actual, likely or irreparable harm or loss. On the other hand, it
does appear to me that Lime will likely suffer financial damage and
reputational loss if a stay is granted, particularly as they have indicated
that they have already relied upon the interim Determination Notice.”
Telecom Provider LIME was obviously “please like puss”
with the ruling as note in the article “LIME calls rate ruling a major
victory”,
Thursday July 12, 2012, The
Jamaica Gleaner.
Telecom Provider LIME’s Managing Director Gary Sinclair
pounced upon this irony of a Challenge of the Authority of the OUR and in the
same breath launching a promotion with this smug quotation: “Actions speak
loudly. We responded to the OUR's lowering of termination rates by immediately
dropping our mobile prices to the lowest in Jamaican history and our people
reacted very positively. Digicel responded by taking the OUR... to court.”
Telecom
Provider Digicel
was obviously disappointed with outcome
of their Legal challenge as stated in “Digicel loses bid to challenge new
call rates set by OUR”,
published Thursday July 12, 2012, The
Jamaica Gleaner and “Digicel disappointed by court ruling” published Thursday July 12, 2012, The Jamaica Gleaner.
Head of Digicel Legal and Regulatory
affairs, Richard Fraser expressed Telecom Provider Digicel disappointment with the whole
situation, quote: “We are disappointed with today's ruling as we maintain that
the OUR ought to have adhered to the principles of natural justice and carried
out some form of prior consultation on the issue before issuing its
determination”.
Telecom
Provider Digicel
has also decided not appeal the decision, as from a logical standpoint,
accepting it means that their other case against the FTC (Fair Trading
Commission) has a strong likelihood of succeeding. This is with regards to the
legality of the swap of CLARO Jamaica involving Carlos slim-owned America Movil
from Digicel El Salvador and Digicel Honduras.
FTC
charged that it unfairly hinders competition in Jamaica as laid out in my blog article entitled “FTC wins right to pursue legal action against the Digicel-America
Movil swap - Game of Thrones as Mobile Data Candyshop beckons”.
By
accepting Puisne Judge Ingrid Mangatal ruling, Telecom Provider Digicel
has set the stage for a victory in this other very pivotal case as now the
lower prices in Jamaica in the Voice Telecoms Sector is an indication is alive
and well for the next three (3) years..
Telecom
Provider Digicel
will win the case provided provisions are made to allow other players into the
Voice and Data Services Market for Telecoms. As such, Telecom Provider Digicel
may have to relinquish some of its spectrum in an out-of-court settlement in
the interest of the advancement of the Telecoms Sector.
Good to note here that Triple Play
Provider FLOW
has also dropped their rates as well to JA$6.99 for Cross Network Calling without
argument with the Interim Regulatory body on Sunday July 15
2012AD as stated in the article “Flow
rates down”, published Monday July 16, 2012, The Jamaica Gleaner.
Their
rate decline to JA$6.99 is also as equally dramatic as that of Telecom Provider LIME
and Telecom Provider Digicel
as listed below, fodder for a deep analysis article on rates:
1.
Flow to Digicel was previously JA$7.50
(peak hours) and JA$6.50 (off-peak)
2.
Flow to LIME was previously $9.50 (peak
and off Peak)
Triple
Play Provider FLOW President and CEO Michele “Dallas” English made the
following Press Release on the OUR’s mandated Cross Network Rate Tariffs quote:
“Since our launch, we have been able
to provide our customers with the best pricing on landline telephone service,
including being the only telephone service provider offering 100 per cent free
on-network calls (Flow to Flow), lower calling rates to call LIME landlines
than LIME charges for its own on-network calls and truly unlimited international
calls to the most frequently called destinations. Our move to reduce these
calling rates is just another step to fulfilling our promise to always deliver
the best value to our customers”.
This
all coming to pass on Sunday July 15th
2012AD, a date worth repeating and young children noting in this our Jamaica 50th
Jubilee of Independence; freedom from abnormally high On-Net, Cross Network and
International Calling Tariffs in the past five (5) weeks.
But
while some shackles are removed, some new ones were also being fashioned by the
GOJ (Government of Jamaica) under the quiet. Also historical in its
implementation due to the cash-strapped nature of the GOJ Budget!
It
is the need to find non-elastic sources of taxation that has prompted the GOJ
on Sunday July 15th 2012AD to implemented among other controversial taxes,
(including on patties too!), the Telecoms Tax as stated in the article “New
telephone tax takes effect”, published Monday July 16, 2012, The Jamaica Gleaner.
This
is the GOJ’s Pound of Flesh also took effect on Sunday July 15th
2012AD as well, taxing as laid out in my blog
article entitled “GOJ
taxes Telecom Providers and OUR sets Cross Network and International Calling
Rate at JA$5.00 - Data Services Prometheus”.
Folks,
this is a brave New World and marks a historical transition for Jamaicans to a
Flat Rate Calling Tariff that will benefit Telecom Provider LIME
over the next three (3) years while boosting revenues by making it cheaper to
call more frequently. More importantly the stage is set for more competitive
pricing environment in the Telecoms Sector and benefits for customers over the
next (3) yeas as Telecom
Provider LIME makes a push for Voice Services
Dominance
But
what of call by Telecom Provider Digicel
for MNP (Mobile Number Portability) as stated in the article “Cellphone
number portability lagging”, published Monday July 16, 2012, The Jamaica Gleaner?
Fodder
to fuel the passionate competitive flames of another article folks........
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