CWC, Flow merger bad for competition
THE EDITOR, Sir:
After reading the article written by Sasha-Gaye Chambers regarding the Cable and Wireless/Flow acquisition, I must say I respectfully disagree. I cannot see how this 'marriage' is a positive move and it is even harder to see how the consumer will benefit. The first point stood out to me as it will to most consumers.
"With CWC already being dominant in the landline market, the merger with Flow will drastically increase its presence in the telecommunications, broadband and cable markets, which will give the company additional ammunition to fight for market share with Digicel."
It was shocking how quickly the Minister approved a deal of such magnitude, a decision that will only have a negative impact on the telecommunications landscape in Jamaica for decades to come. We talk about liberalisation and yet approve a merger that combines the two largest entities in the fibre space, creating 100 per cent monopoly.
CWC, now the only provider with the ability to provide a mobile, landline, broadband and cable bundle, gives them an overwhelming advantage over any possible competition. They have less incentive to be creative and innovative for customers who are left with two choices, use Cable and Wireless or go without.