Digicel 'concerned' about Cable and Wireless' proposed acquisition
Telecoms company, Digicel says the impending acquisition of Columbus International by Cable and Wireless Communications raises regulatory and competition concerns.
Cable and Wireless Communication is the parent company of LIME in Jamaica while Columbus Communications, the operator of FLOW, is owned by Columbus International.
Cable and Wireless Communications announced this morning that it has reached a conditional agreement to acquire Columbus International.
READ: Cable and Wireless to buy Columbus International
The announcement comes two months after Digicel, announced its acquisition of majority ownership of International Media Content Limited, the parent company of regional sports broadcasting company, SportsMax, and North American broadcaster CEEN-TV.
SEE DIGICEL's FULL STATEMENT BELOW
Thursday 6th November 2014 – Kingston, Jamaica:
Digicel notes today’s public announcement in relation to the proposed acquisition of Columbus International Inc (“Columbus”) by Cable and Wireless Communications Plc (“CWC”). Although the full details of the proposed merger have not yet been made public, Digicel is naturally concerned about the clear and obvious challenges and potential issues posed by such a proposed move from a Regulatory and Competition perspective.
Digicel understands that the proposed acquisition will require significant regulatory approvals from a number of bodies in the region; including Ministerial approvals, approvals from Regulatory Bodies as well as approvals from certain anti-trust agencies. Digicel looks forward to being provided with further details of the proposed transaction so as to allow it to make considered submissions to those bodies as is appropriate and necessary.
This proposed transaction raises a considerable number of issues for telecommunications regulation and competition generally in the region. The issues that will need to be addressed include such matters as fairness in spectrum allocations, local loop unbundling, price bundling generally as well as a myriad of other likely issues which will only become apparent once Digicel and other agencies and bodies have been fully appraised of the details of the proposed transaction and the likely resultant impact on the telecoms market in the region.
Digicel is confident that the proposed transaction will be considered in the context of a transparent and fair process sponsored by the relevant agencies with responsibility for these matters and that it will be afforded a full and fair opportunity to engage in the approvals process given its status as a major telecommunications provider in the Caribbean region.
Digicel Group CEO, Colm Delves, stated; “We are naturally concerned to ensure that this proposed transaction will not result in an un-level playing field in the Caribbean. We look forward to engaging constructively and responsibly with all relevant agencies and bodies to the fullest extent necessary to ensure that fair and vibrant competition is maintained in the Caribbean region and that the interests of all Caribbean consumers are fully protected.”
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