« Yawn, yawn…enough Bounty, Kartel | Main | Seniors Learning to Use the Computer »
October 28, 2009
Digicel responds to LIME lawsuit
Telecommunications provider Digicel has issued a stinging response to a lawsuit brought against it by its rival LIME.
In a statement to the media Digicel dismissed LIME's claim as a desperate attempt to cling on to its crumbling monopoly on the local land-line market.
It added that the action by its rival is aimed at forcing it to hike the prices of its fixed wireless product for business customers-- a move which it has vowed to resist.
The suit, filed in the Supreme Court on Monday is part of LIME's efforts to get Digicel to lower the rates it charges for its land-line customers to call Digicel mobile phones.
LIME is also seeking to recover damages of more than $100 million which it claims has been lost because of Digicel's pricing structure.
In the suit, LIME claims that in January, Digicel started to charge LIME's landline customers as much as $8.50 per minute to call Digicel mobile customers.
LIME says Digicel was then charging its own landline customers only $4 per minute for comparable calls.
LIME is maintaining that Digicel, by setting a much higher termination rate for LIME to pay when its land-line customers call Digicel mobiles, has imposed discriminatory pricing.