Digicel Jamaica has introduced a new tariff in response to price reductions by rival operator LIME Jamaia. The price cuts follow a decision by telecoms watchdog the Office of Utilities Regulation (OUR) in early June to lower mobile termination rates (MTRs) to a flat level of JMD5 (USD0.06) per minute. In the wake of the MTR change, LIME announced early last week the introduction of a lower tariff offering on-net calls at a rate of JMD2.99 per minute (JMD1.99 per minute for post-paid customers): in response, Digicel launched a new rate of JMD2.89 per minute for on-net calls. Telecoms minister Philip Paulwell said that the price cuts were a sign that competition is ‘alive and well.’
Meanwhile, Digicel has filed a law suit against the OUR, challenging its authority to alter MTRs, accusing it of not consulting with the cellco. The case is expected to be heard today.