個案總覽

This teaching case presents a situation confronting Garfield Sinclair, the Managing Director of LIME Jamaica, a telecommunication provider, in March 2011, learning of a possible swap deal between the market leader, Digicel and its closest rival Claro (LIME's two biggest competitors). The unexpected deal threatens to create a new monopoly in the Jamaican telecommunications market. Ironically, LIME held a monopoly position in Jamaica until 2000, when new licenses were offered in the country. Now, LIME's very existence is threatened and Sinclair must decide what to do. This case supports debate on whether the telecommunications industry is a natural monopoly, and can serve as a vehicle that improves students' understanding of the complex interplay among technology, business strategy and the law.

Cable and Wireless, Jamaica (C&WJ) operated in Jamaica under an exclusive license that made it a virtual monopoly. In 1999, the Government of Jamaica decided to renegotiate the license and liberalize the telecommunications industry. Early in the liberalization process, new companies entered the market and C&WJ struggled to cope with the new, competitive dynamics of the market. Although dominant in the landline market, C&WJ found it difficult to compete in the cellular market, lagging behind relatively new entrant Digicel. The recent entry of América Móvil, operating under the brand name Claro, into the market has intensified the competition and is threatening the relegation of C&WJ into third place. In response, C&WJ in 2008 embarked on a new, high-risk transformation strategy that included corporate rebranding and a change of its name to LIME (Landline, Internet, Mobile and Entertainment). This case chronicles the problems faced by LIME in adjusting to a telecommunications industry paradigm.