When Digicel, an Irish mobile-phone operator, decided to invest heavily in Haiti last year, it raised eyebrows. How on earth did Digicel's maverick owner, Dennis O'Brien, hope to make money in such a poor country? “You don't look at GDP. You ignore that,” says Mr O'Brien. Sure enough, Digicel signed up new customers so fast that the company had to rewrite its business plan after the first week. After just 15 months it has signed up 1.7m customers, compared with the 1m shared by its two rivals, Comcel and Haitel. Digicel's assault on Haiti is only the latest in a series of Caribbean conquests. Since the company set up in Jamaica in April 2001 it has established a presence in 22 markets in the region and has amassed some 5m customers. Mr O'Brien says he has invested $1.9 billion in total, including $260m in Haiti.

Digicel has prospered by introducing modern technology and innovative services into stodgy, uncompetitive markets. Its entry into Jamaica led to drastic reductions in prices and showed the region just how much it stood to gain from liberalisation. Digicel used a similar recipe in Haiti. “We floored prices and gave people a better service,” says Mr O'Brien. Pre-paid billing, based on top-up cards 充值卡, makes phones more affordable to those outside the business and political elites. Digicel has also introduced novel twists of its own, such as the ability to send free “call me” text messages to other people.

But some analysts predict the company's rapid growth may now have peaked. Competition is heating up as operators in Latin America, where growth is now slowing, look to new markets in the Caribbean and Central America. In particular, América Móvil, the world's fifth-largest mobile operator, announced its intention in August to buy Oceanic Digital, a small Jamaican phone company that operates under the MiPhone brand. América Móvil has 140m customers in Mexico, Brazil, Colombia and the United States. Jamaica would be its third Caribbean market. It already has operations in Puerto Rico and the Dominican Republic. Like Digicel, it relies on strong branding, modern technology and cut-price tariffs.

América Móvil's move looks like retaliation after Digicel began operations in El Salvador. Digicel has also acquired a licence in Guatemala, and says it is looking next at Honduras, Nicaragua and Panama. A price war in Jamaica could be bad for Cable & Wireless, a British firm that operates several networks in the Caribbean. It is hoping that its ability to offer both fixed and wireless services will prove to be an advantage. Whether or not that turns out to be so, consumers will benefit from the increased competition.

Digicel's critics say it has used underhand tactics, such as giving away free phones to journalists, and breaking industry rules by treating Haiti as part of Jamaica in order to offer cheap roaming. Haiti's regulator, Conatel, found Digicel to be in violation of international standards, but was overruled by the government. Such rulings have also led to allegations that Digicel has undue political influence in some markets.

But officials deny any impropriety and credit Digicel with making the market more affordable for Haiti's poor majority. “Haiti needs more foreign investment like this, both for the jobs and for the ‘best practices’ business models that it injects into this antiquated, non-customer-friendly business environment,” says a senior Haitian official.

(Ref. No.: JJ-CAB1320090830)

1. In the first sentence of the first paragraph, “it raised eyebrows” means_____

[A] Digicel thought highly of the future profit.

[B] Digicel was confident that it could make a success.

[C] Haiti was surprised at Digicel’s plan.

[D] Haiti was happy about Digicel’s decision.

2. Which one of the following is NOT true of the mobile service of Digitel in Haiti?

[A] Innovative services include providing customers with a series of free text messages.

[B] The poor people will pay for the services in advance.

[C] People enjoy cheap roaming fees for calling the other regions of Jamaica.

[D] Digicel has greatly liberated the communication potential of the poor country.

3. América Móvil can have such a big market share due to the following reasons except_____

[A] It owns innovative technology and services.

[B] It enjoys the tariff reduction provided by the invested regions.

[C] Its brand has gained fame in mobile industry.

[D] It provides the mobile services at low price.

4. The word “overruled” most probably means_____

[A] reversed.

[B] overrun.

[C] refused.

[D] retorted.

5. Which one of the following statement is TRUE of the author’s opinions on the rumors on Digicel?

[A] He sounds skeptical about whether Digicel has violated the international standards.

[B] He doubts that Digicel maintains special close relation with the government and media of the region.

[C] He is discreet and careful not to reveal his own view on relevant criticism of Digicel.

[D] He holds positive view on the benefit of Digicel’s new business model when applied to less-developed areas.