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Digicel’s bid to Acquire Claro in Jamaica finally Approved – with conditions…

Digicel’s acquisition of Claro was announced in early April and was expected to be done and dusted by June but for various reasons the deal was not wrapped up until recently.  Prime Minister Bruce Golding as approved the merger but attached strict requirements to prevent Digicel from morphing into a monopoly which in turn will affect it’s customers and Jamaica mobile and internet sector.

Bruce Golding stated:

“I have approved the acquisition of Claro by Digicel and the assignment of relevant licences without any modification to the licences and the obligations contained therein. This means that Digicel will be required to fulfill all of the obligations contained in the Claro licences with regard to the type of facility and specified service that must be provided, its interconnection obligations, licence limitations and network expansion obligations”.

The conditions and requirements of the deal include:

  • Reduction in cross network calling rates
  • Digicel must continue to operate 2 separate networks

Jamaica Observer Cartoon - March 17th 2011

Digicel’s statement read:
“Digicel is still waiting on regulatory and Government approval in El Salvador and Honduras for the sale of its operations there to Claro, until such time as the necessary approvals are obtained in all three countries and the proposed transaction closes, both businesses – Digicel and Claro – will continue to operate independently.”
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Kelroy is an internet junkie, technology advocate, avid gamer and Jamaican Blogger who envisioned Geezam.com as a Caribbean based technology blog offering a more global view of technology topics. Follow his tech related ramblings and stay in touch via Twitter @Geezam

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2 Responses to "Digicel’s bid to Acquire Claro in Jamaica finally Approved – with conditions…"

  1. Ramano says:

    So effectively Claro will still be here as “Claro” but operated by “Digicel”?

    • Kelroy says:

      I doubt the bosses in Mexico will allow Digicel to use the “Claro” brand, Don’t be surprised it Digicel whips up a separate franchise of sorts

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