The solution to the question of market share in the telecom market?

In the absence of a centralized data base on the actual number of active mobile subscribers, market share claims made by local telecom firms, LIME, DIGICEL and CLARO are difficult if not impossible to verify. However if the Government’s move to pass laws for a system of mandatory registration of subscriber information (MSRI) in Jamaica, is executed, then we could see a final resolution to this problem.

The Jamaican Government intends to introduce an MSRI system to help stem the worsening crime situation. Under this initiative the three mobile phone companies will be expected to provide data on request as part of law enforcement.

According to recently published comments on the matter from the three telecoms, Claro welcomes the move and is committed to it. This according to marketing manager of Claro Jamaica, Joseph Oates, indicating that the telecoms provider’s Mexican operation already had such a system in place making Claro’s inclusion of this local initiative not difficult.

Digicel for their part indicated that they are patiently waiting on further information from the Government before indicating its course of action. Richard Fraser, head of legal and regulatory affairs is quoted as saying that “The effect of such a move will depend on the specific requirements set by Government. As matters currently stand, the costs associated with establishing a unique database of subscriber information which accords with the Government’s requirements remains unclear, particularly in respect of how it is to be funded and the timelines for implementation.”

“Disclosure of subscriber information is governed by the Telecommunications Act and Interception of Communications Act, whereby operators are only required to disclose information pursuant to a court order. As far as we are aware, the proposed implementation of mandatory registration requirements would not change this obligation or process.” He said further.

LIME Jamaica is reported to have said that it was still evaluating the proposal and would not be drawn into commenting. “We respectfully decline to speak on the issue at this time,” was Camille Taylor, corporate communications manager at the company response.

It has been argued that claims by the telecoms of total subscribers in excess of the national population are suspicious and may include significant double counting and inactive subscribers.

According to a report published by the Paul Budde Communication Pty company (BuddeComm’s annual publication, ‘Jamaica – Telecoms, Mobile and Broadband’, profiles the fixed-line, mobile and broadband markets in Jamaica), published on the internet site www.budde.com.au there is a lot of money at stake in the local telecoms market.

“In contrast, the relative size and rapid expansion of the mobile sector continues to underpin growth in the telecommunications industry. Despite a slowdown in 2009, largely due to the broader recessionary environment, the mobile sector is poised for strong growth between 2010 and 2015 on the back of the launch of new 3G and 4G networks. In particular, mobile broadband is likely to become a major revenue driver with stronger competition emerging between Digicel, Claro and LIME.”

Competition in the sector will be materially improved should mobile number portability, currently being canvassed by the regulator, be introduced.”

The BuddeComm’s annual publication indicates “that by early 2010 Digicel had approximately 2 million subscribers in Jamaica, representing around 65% of the mobile market. Both LIME and in particular Claro improved their market shares between 2009 and early 2010. Competition in the sector will be materially improved should mobile number portability, currently being canvassed by the regulator, be introduced.”

According to the report the Mobile subscribers market is estimated to be 3.2 million with an annual growth of 5% and a mobile penetration 112%. The Latest Jamaica Population Estimate is 2,825,825 for 2009.