5 Questions Re LIME’s Game-Changing Rate Cut

June 15, 2012

LIME Jamaica Cuts its Mobile Rates… Drastically

It’s something that has been long anticipated, and well overdue – a master stroke from Jamaica’s fledging telecoms provider. This is the move LIME! This is what we’ve been waiting for; not necessarily the rate cut though, but something that screams, ‘Hey We’re Serious!’ … and Today you did it.

A Decisive Move

As the Gleaner Reports

Telecommunications company LIME has made the first decisive move in what could become a major battle for customers in the Jamaican mobile phone market.

Today the company announced a $2.99 per minute rate for prepaid customers making international and on network calls as of tomorrow.

The rate for its post paid customers is $1.99 per minute.

These are reportedly the lowest callling rates in Jamaica’s history and probably the world. The rates have moved from J$8 per minute to calls on the LIME network and J$12 per minute to calls on other networks.

 5 Questions Everyone is Asking

As we come to grips though, with the reality of this shocker. There are some immediate questions which we cannot help but asking. Here are 5.

1. Are these rates for real???!

LIME I must say, this has been the most ground-breaking news I’ve heard in a while! This is shocking, jaw-dropping, just downright bewildering. It is a sure sign though of somebody that’s ready to fight, and that is good. Forget number portability and the fact that Digicel will not just lie down and watch their market share wilt away – this is spectacular!

2. How long will this be for?

I imagine that these are the new rates. BUT, if I can just see something somewhere that will say that this is not a catch, a ploy to get back customers and then increase, something to tell me that these rates are not conditional then I’m good to go.

3. Are the new rates below the cost of providing the service?

The 2nd question everyone asks (after opening their mouth in shock and wondering if these rates are for real), is whether the rates could have really been lower all along, and ‘if Digicel ah tief wi all dis time’.

4. What if nobody (not enough people) switch?

The strategy is to get back market share. We know that LIME has less than 10% if even 5% of Jamaica’s mobile market share. Estimates range at about 100,000 customers or less. Digicel has about 2 million. The success of this strategy depends largely on the ability to get back customers, but what if they’re slow to respond, what if enough persons don’t respond as expected? Stick to your guns. Don’t change course. People will respond eventually.

5. What if Digicel responds… strongly?

“He will win who knows when to fight and when not to fight”
― Sun Tzu

Trust me, I know that Digicel knows when to fight and when not to fight. The only problem with this situation is that, it requires some immediate response… and strongly. Digicel will respond (I hope) and if they cut rates to the level LIME has cut them, what will be next. This will be very interesting.

 

6. Bonus Question: Number Portability?

We see that you have decided to pre-empt number portability, even the finalization of the telecommunications act. Desperate times call for desperate measures. However if you had number portability with this rate drop, you would easily decimate your competition. Regardless however, how will people respond without number portability? We will have to wait and see.

What do you think of LIME’s game-changing move?

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