Business Services Industry
America Movil entry into Jamaica will likely spark price war.(JAMAICA)
Latin America Telecom, August, 2007
The entry of Mexico's America Movil into Jamaica will likely start a price war against the country's existing operators Digicel and Cable & Wireless Jamaica, according to Jose Otero, president of consulting firm Signals Telecoms Consulting.
Otero believes AMX will use its financial muscle to heavily subsidize handsets and slash rates for the operator MiPhone.
AMX announced on August 23 that it had acquired 100 percent of Oceanic Digital, which operates the MiPhone brand, and expects to close the deal during the fourth quarter.
AMX's market debut will mean an increase in subscriber retention and acquisition costs for Digicel.
In the case of Cable & Wireless, the key will be how it is able to improve synergies between its incumbent...
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