Strategy and Technology in Telecoms: Digicel Withdraws IPO

Strategy and Technology in Telecoms: Digicel Withdraws IPO

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Abstract

Taking advantage of the deregulation in telecommunications sector in the Caribbean, Digicel entered the Jamaican market in 2001. Digicel quickly usurped the dominance of the incumbent, Cable and Wireless – in the mobile segment of the market – using a strategy of affordable phones and a user-friendly approach to mass marketing. This strategy was used to enter other small underdeveloped markets in the Caribbean and Central America and thus challenge the incumbent by competing aggressively on price. In 2014, Digicel commenced a strategic change, with an evolution from a pure mobile services company to becoming a communications and entertainment provider. Price competition in its most lucrative segment (mobile) saw revenue plummet; the competition from non-traditional players and the existing competitor C&W strategic acquisition of a ...

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