Reacting to the controversial merger of Claro and Digicel earlier this year, Jamaican telecoms watchdog, the Office of Utilities Regulation (OUR) has introduced an interim mobile termination rate (MTR) of JMD5 (USD0.056) per minute for both domestic and international originating calls, to come into effect from 15 July 2012. In its determination, the OUR said: ‘Given the fragile state of competition which now exists in the mobile sector, the Office is of the view that there is need for an interim MTR… to prevent the two remaining mobile operators from leveraging their dominance in terminating calls on their respective networks.’ The OUR reviewed proposals from both LIME and Digicel for the interim MTR, with LIME submitting a fully allocated cost (FAC) model which produced a cost of JMD4.99 per minute. Digicel however, recommended MTRs of JMD7.75 per minute for off-peak domestic calls and JMD9.00 per minute for peak domestic calls, and JMD12.00 per minute for international calls. Digicel failed to comply with the OUR’s request to supply cost and traffic data to support its proposals, however and as a result the regulator determined that the MTRs proposed by Digicel were ‘unrealistic and cannot be substantiated.’
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