Finance / Jamaica
Claro-Digicel Merger Produces Varied Experiences For Operators
September 2011 | Corporate Financing AnalysisThe El Salvadorian Superintendencia de Competencia (SC) has imposed a series of restrictions on Claro's acquisition of Digicel in the country. The largest setback for Claro is that it must return 20MHz (40%) of its spectrum to telecoms regulator Siget before the merger will be approved. This contrasts with the situation in Jamaica, where Digicel's takeover of Claro was approved with minimal requirements. We take a look at the competitive and regulatory environment in both countries, and express concern over Digicel's proposed 83% Jamaican market share in the face of a weak regulatory environment.
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