C&W gets majority stake in Bahamas Telecoms

Cable & Wireless Communications Plc (CWC) and the Bahamian government on Wednesday inked a deal which sees the telecoms giant gaining a 51 per cent controlling stake in the state-owned Bahamas Telecommunications Company Limited (BTC).

The deal, which is valued at US$210 million, will see CWC having management control of the business, with key terms of the sale and purchase agreement being consistent with the memorandum of understanding that was signed between both parties in December.

"BTC is a business with strong prospects, well-positioned in one of the region's largest economies," Tony Rice, CWC Chief Executive said, commenting on the acquisition. "It will form a key part of our LIME business, benefiting from our regional platform and scale, while maintaining its Bahamian character."

According to Rice, the immediate focus will be on preparing the business for competition. "We intend to improve its networks, introduce new services and move it to a cost base, making it able to sustain the business in a competitive environment.

"In partnering with the government of the Commonwealth of The Bahamas, we believe that we can deliver a world-class telecoms capability to the people and businesses of The Bahamas," he added. The telecommunications landscape in The Bahamas is set to become the next battleground for market share.

BTC is the sole mobile operator in The Bahamas, where it serves 392,000 customers. It also provides fixed-line and broadband services.

The process to liberalise the mobile sector will commence in three years time, with regional kingpins Digicel already setting its sights on that market.

While the final agreement is subject to a number of conditions, including parliamentary and regulatory approvals, CWC is hoping for completion by the end of March.

Both parties have developed a business and restructuring plan for the 95-year-old company to improve and expand its services and increase its customer focus. Workforce restructuring programmes during the first two years after privatisation will be undertaken on a voluntary basis.