LIME to pay US$13mn to Digicel Jamaica over unpaid fees

Cable & Wireless Communications' (CWC) Jamaican unit, LIME, will pay competitor Digicel more than J$1.5bn (US$13mn) for unpaid fees.

The Jamaican Supreme Court sided with Digicel on the two lawsuits presented by the Irish-based telecom in 2007 and 2009. In those suits Digicel argued that LIME had failed to pay the appropriate fees for the calls placed by LIME customers to Digicel lines.

LIME filed a counter lawsuit against Digicel for 600mn Jamaican dollars, according to newspaper Jamaica Gleaner. However, the judged agreed with Digicel and held that LIME had deducted a sizable amount from the fees collected from its fixed-line customers.

LIME controlled 92% of the fixed-line market as of May 2014, according to Jamaica's Office of Utilities Regulator.

This is a small victory for Digicel, which has seen its position in Jamaica's telecom market threatened by CWC's acquisition of Columbus International for US$3.02bn in November.

Digicel proceeded to challenge the merger announcement and call on regional regulators to investigate the transaction, but the Jamaican government approved the operation in January.