Digicel, the Caribbean-based telecoms company controlled by Denis O’Brien, has failed in a legal bid to stop a cut in telecoms interconnection rates in Jamaica that allows its competitor, Cable & Wireless Communications, to drop its call rates.

The Jamaican Supreme Court refused to grant Digicel leave for a judicial review of a decision by the telecoms regulator to set a per minute mobile termination rate of JMD$5 (5c), down from JMD$9. The new rate, which came into effect this weekend, has already prompted a price war between Digicel and Lime, C&WC’s phone business in Jamaica. Digicel challenged the right of the regulator to set rates and also sought a stay on the introduction of the interim mobile termination rates – or the rates operators charge each other for receiving or terminating calls. Up to now, Lime was prevented from reducing these rates, whereas Digicel was not.