Digicel, C&W or MiPhone pass the cost of termination rates onto the consumer when they make such inter-network calls.

MiPhone CEO Alejandro Guiterrez told Sunday Finance that Digicel has refused to lower termination rates between the two networks which keeps tariffs higher and deters users from calling outside of the network.

Guiterrez said that this is a barrier to entry.

The Irish Digicel dominates Jamaican mobile with twice as many subscribers (1.9 million) than the combined subscriber bases of the British C&W (660,000) and the Mexican MiPhone (250,000) - which aims to become the number one player within three years.

Guiterrez said that he had reached agreement with Flow and C&W to lower termination rates so that calls between that network and also Flow landlines are now charged as 'on-network' calls - the same rate as charged between MiPhone subscribers of $10 per minute.

Termination rates between MiPhone and C&W mobile users have also been reduced with new tariffs set to launch at the end of August. However the details of this deal are being kept confidential for the time being, said Guiterrez.

He said that termination rates between MiPhone and Digicel remain higher - contributing to a call rate to that network of $17.75. Guiterrez added that he could not disclose these rates, again for confidentiality reasons.

"The question arose because of the discriminatory practices used by Digicel by charging different termination rates to us than those to Flow and C&W, so this makes us think weather or not Digicel is charging termination rates based on the principle of cost orientation as required by the act or largely based on negotiating power from its dominance in the market," said Guiterrez.

High termination rates and corresponding inter-network call costs mean that many Jamaicans own more than one mobile phone to save on calling outside of their network which has contributed to the island having more mobile subscribers than people - population 2.8 million.

The OUR has determined all three local mobile providers to be 'dominant' on their own network and stated this factor as a technical barrier to entry and has accordingly reserved the right to set termination rates.

"Throughout the Office's consultation, the important question considered was, if carrier 'A' wants to terminate a call destined for a customer on carrier B's mobile network, what are the alternatives to the purchase of mobile voice call termination service from carrier 'B'?" was the OUR rationale.

MiPhone and C&W appear to share an understanding on mobile termination rates.

"I think Cable & Wireless learned from its mistakes being a monopoly power - at least I can talk for the people I know today - it seems like they're moving in the right direction...which is not in the case of Digicel," said Guiterrez.

When contacted C&W supported MiPhone.

"Digicel's majority market share coupled with the extraordinary high termination costs from mobile to mobile and more so that charged to its retail customers for calls to other mobiles, does amount to a ring fencing strategy, which bears a very striking resemblance to 'monopolistic tendencies'," said Errol K Miller, C&W vice president of corporate communications.

Termination rates should theoretically provide the basis on which rates to consumers should be based. Miller said that the average termination rate between Digicel and C&W is $8.49.

C&W is currently cheaper, charging its customers $10-12 per minute to call Digicel and MiPhone customers. However, Digicel customers must pay $5 more per minute to call the two rivals networks, with rates of between $15.80-17.70 per minute.

Digicel did not return comment for this article.

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