On March 11th, the tables turned in the telcom industry when America Móvil (AMX) announced that they have entered into an agreement with Digicel to sell its local operations (Claro) to them while they take over Digicel's operations in Honduras and El Salvador. The feud between Carlos Slim Helú (owner of AMX and the richest man in the world) and Dennis O’Brien (owner of Digicel) finally seems to be winding down. In case you didn’t know, Claro dived into the Jamaican market in 2008 as a result of Digicel invading AMX’s Central American territories. By 2009, Claro Jamaica secured its place as Digicel’s main rival by making a big splash in the market with their catchy advertisements, aggressive promotions and competitive rates but this was not enough for them to cruise along comfortably.
So…What does this merger mean?