Mobile Telecommunications in Central America and the Caribbean – A Significant Reduction in Competition
19 Pages Posted: 1 Nov 2011
Date Written: October 28, 2011
Abstract
In March 2011 three national network operations were exchanged between América Móvil and Digicel, withdrawing from competing in each other’s markets: El Salvador, Honduras and Jamaica. The effect was significantly to reduce the levels of competition at the time and in the future, by discouraging future market entry. Digicel by agreeing not to compete excluded itself from potentially important markets and to limit its future growth, while América Móvil reinforced its dominance in Central America.
Keywords: telecommunications, mobile, collusion, competition, Americas
JEL Classification: L96, K21, K23, L41, L44, L52, M14
Suggested Citation: Suggested Citation