CASE: DIGICEL GETS COMPETITION FROM RENEWED LIME

Cable & Wireless is based in the countrys capital, Kingston, Jamaica. It is a subsidiary of the British-based Cable & Wireless Public Liability Company. It was founded in 1987 and 82% of its capital is owned by Cable & Wireless Public Liability Company.

To the residential district, Cable & Wireless offers mobile services, internet services, broadband services and home telephone (homefone) connections. The Homefone Connection comes with broadband services including high speed internet, post-paid voice over, net speak, high-speed wireless internet and global internet roaming services. in early 2015, Cable & Wireless Communications (CWC), owners of the LIME brand, acquired Columbus Communications, owners of the FLOW brand, with an intention to grow its mobile market share and to consolidate its leading market position in the telecom sector. In May 2016, CWCs LIME brand, came under the FLOW brand name.

Prior to the purchase of Columbus Communications, Cable and Wireless did not have cable tv but Digicel had mobile phone, internet and cable tv. This was giving Digicel an edge in the telecom market.

Digicel was launched in Jamaica in April, 2001. It garnered 100,000 customers in approximately 100 days. in 2012, The merger between Digicel and Claros Jamaican business strengthened Digicels dominance of the mobile sector. By 2017, Digicel had 70% of the mobile market. It has expanded rapidly and now spans across 31 markets in the Caribbean, Central America and Asia Pacific. In each market Digicels mission is to deliver the best network, the best service and the best value to our customers and to give back to our communities. Digicel offers mobile communications, internet, media and entertainment.

Symbiote Investments Limited, the newest player in local mobile telecommunications sector, is vowing to use price and quality service to take on the big two, FLOW and Digicel.

The company, which will operate as Caricel, says it will focus on the data section of the market as it tries to woo Jamaicans who are not satisfied with the service they are now getting.

"We will be extremely competitive in price and superior in service and technology," a Symbiote spokesman told The Sunday Gleaner late last week, after the company confirmed that it had finalized an agreement with the Government to pay just under US$21 million for the use of the spectrum. Jamaicans will enjoy a coverage never seen before as we will employ the latest long-term evolution (LTE) 4G technology to focus on moving data," added the spokesman, who asked not to be named, as he is not yet officially approved to speak to the media.

According to the spokesman, the company should hit the market in a matter of weeks, April 2016, and will initially offer its service in the Corporate Area and Portmore.

Today, Jamaicas telecom sector is largely propped up by the maturing mobile sector. However, with the rebranding of LIME to FLOW, Cable and Wireless created a Triple Play package dubbed Watch, Talk and Click (Tv, Phone and Internet). Triple Play was promoted mainly via advertisement and sold in its stores. As mentioned, this was Flows attempt at playing catch up as Digicel had a similar triple combination offering called Digi Play.

While Flow sold its services instore, Digicel aggressively pushed its Digi Play within its stores as well as by using field sales agents supported by advertisement. The use of sales agents gave Digicel the benefit of two-way communication and direct feedback as sales agents could answer questions and recommend solutions on spot. Digicel also benefited from advertisement as it reached a wide audience at relatively less cost despite its inability to build relationships.

Although Digicel and FLOW sold their products exclusively in their own outlets, in many instances independent retailers sold both Digicel and FLOW products. Using independent retailers afford Digicel and FLOW more coverage at lesser expenses, but it reduced the control over its image and affected operations. At times this result in disputes between Digicel and FLOW, as well as between retailers and the service providers and between similar retailers.

It's been a long road, but FLOW has been recapturing more of the Jamaican market from its competitor Digicel in the cellular market while holding onto its market leadership in other areas such as internet, land lines and cable. Flow has also more than doubled its share on the mobile side and is eyeing the Caribbean Single Market region for expansion and growth.

While Digicel is still the largest player in the mobile market, FLOW is the clear market leader in its other segments, including the internet market, cable TV market and the landline market. The success in mobile has come about via FLOW's strategy on differentiating itself on price, by trying to offer more value for money than its competitor. Flow is aiming to be the value provider in the market.

Table 1.1 Flow Play Packages published 2018

Packages	No. of Channels	Price $	Fibre Speed mbps (download)	Home Phone
Essential	Over 50	4658.84	20	100 Free Flow to Flow mins
Plus	Over 100	5823.84	20	100 Free Flow to Flow mins
Max	Over 140	6406.34	20	100 Free Flow to Flow mins
Watch All	Over 170	8736.34	20	100 Free Flow to Flow mins

Table 1.2 Digicel Play Packages published 2018

Packages	No. of Channels	Price $	Fibre Speed mbps (download)	Home Phone
Play Fast	44	4,425.84	25	Unlimited (play to play)
Play Loud	56	5,474.34	25	Unlimited (play to play)
Play Bold	104	7,338.34	25	Unlimited (play to play)
Play Strong	112	11,648.84	50	1,000 anywhere
Play Big	148	17,473.84	100	1,000 anywhere

Table 1.3 Telecommunication published 2018

TELECOMMUNICATION MARKET IN JAMAICA (2018)

	MOBILE accounts	LANDLINE accounts	INTERNET accounts	CABLE accounts
DIGICEL	120,000	20,000	35,000	20,000
FLOW	50,000	50,000	70,000	35,000
CARICEL	25,000	0	20,000	0

During 2019, Digicels Mobile, Landline, Internet and Cable accounts were 110,000, 35,000, 50,000 and 45,000 respectively. On the other hand, Flows Mobile, Landline, Internet and Cable accounts were 75,000, 70,000, 90,000 and 55,000 respectively. Caricels mobile and internet accounts were 35,000 and 40,000 respectively.

Although the triple play package appealed to some customers, there were many customers whose needs and wants did not require all three services (Tv, Phone and Internet). Indeed, with the pandemic, many customers were only seeking internet facility for online classes, conducting meetings, broadcasting weddings and funerals as well as streaming parties and concerts.

The advent of android boxes and special brand offerings such as Amazon Firestick, were also reducing the need for cable channels. The device could be a threat not only to cable companies but also to video streaming services such as Netflix and Amazon Prime. Indeed, a TV Box advertisement boasts, "Say goodbye to your cable bills and get your TV for free". Here's how it works: Customers attach the loaded box to their TV and stream whatever they want, with no commercials and access to an almost unlimited amount of television shows and movies. There are no monthly fees, just the up-front cost of the device. Customers do have to pay for the device, which sells for less than US$100, depending on the model.

From the case Above Please

Introduction/Background

Background information, relevant facts, and the most important issues.

Demonstrate that you have researched the problems in this case study.

Evaluation of the Case

Identify two to five key problems and issues in the case study.

Why do they exist?

How do they impact the organization?

Who is responsible for them?

Evaluate these pieces by discussing what is working and what is not working.

State why these parts of the case study are or are not working well.

Proposed Solution/Changes

Provide specific and realistic solution(s) or changes needed.

Support this solution with solid evidence, such as:

Concepts from class (text readings, discussions, lectures)

Outside research

Personal experience (anecdotes)

Recommendations

Determine/discuss specific strategies for accomplishing the proposed solution.

Select the Best Solution

Explain why this solution was chosen.

What should be done and who should do it?

Consider strong supporting evidence, pros, and cons. Is this solution realistic?