Trinidad telecom buys rival Massy
Telecommunications Services of Trinidad & Tobago (TSTT), a state-owned telecom, has signed a share purchase agreement to acquire 100 per cent of Massy Communications Limited for TT$255 million.
The deal is subject to regulatory approval.
TSTT said in a statement that the acquisition capitalises on the synergies of both companies, in that a significant part of its current strategic plan involves deployment of both wired and wireless high-speed broadband internet capabilities throughout the country, including investment in fibre optic solutions together with the associated technological infrastructure and systems.
The statement noted that since 2006, Massy Communications had been building out its telecom network and expanding its services.
TSTT chairman Emile Elias said its competitors, which includes Flow and DigicelPlay, should view the acquisition “with terror”.
“I hope they are terrified, as they should be. We are aggressively pursuing our agenda,” he said.
Massy Communications chairman Fenwick Reid said the company had invested TT$213 million in its cable layout over time, but was offloading the business because there were too many players in the market.
“Given the competitive landscape for high-speed broadband and TV services in Trinidad and the intense capital costs of deploying fibre optic networks, some industry participants have been seeking collaborative ways to avoid duplicative capital expenditure,” Reid said.
Massy said that since making the “bold” decision to invest significantly in the expansion of the fibre network in 2015, it has deployed “next generation fibre-to-the-home or FTTH infrastructure which now serves about 34,000 households throughout the country and covers more than 900 route kilometres.
TSTT chief executive officer Dr Ronald Walcott referred to the acquisition as “a historical moment”.
“As part of TSTT’s current TT$3.8 billion five-year strategic plan, we clearly indicated we have one primary mandate and that is to transform TSTT from a legacy 20th century telecoms provider to an agile broadband communications company. To achieve this goal, we always intended to employ a multi-prong approach, using both organic and inorganic growth strategies,” Walcott said.