As of January 2026, reports have emerged that Belize Telemedia Limited (BTL) is seeking to acquire SMART (Speednet) in Belize, which, if successful, could result in a single monopoly-ruled sector. However, there is a history of mergers and acquisitions in telecoms sectors across the Caribbean region. We thus highlight some of the key drivers and consequences when companies decide to merge, acquire others, or be acquired.

 

The telecoms landscape is rarely static. Globally, and particularly within the Caribbean region, the sector has transitioned from state-run monopolies to a period of vibrant competition and, over the past several years, a state of intense consolidation. Mergers and acquisitions (M&As) are the primary engines of this shift, driven by the immense capital requirements of modern digital infrastructure like fibre optics and 5G and smaller profit margins.

Virtually every Caribbean country has experienced an M&A in their respective telecoms sector. Typically, following sector liberalisation, there had been a flurry of new players, which over time dwindled to around two major players in each of the key market segments, which has become the norm over the past 10 to 15 years in most countries.  

It was thus surprising to learn over the past two weeks that the state-majority-owned Belize Telemedia Limited (BTL) has been embroiled in negotiations to acquire Speednet Communications Limited (more commonly referred to as SMART) along with several major cable providers in Belize. The proposed deal, initially valued at approximately BLZ 170 million (around USD 85 million), has faced significant political and public pushback. Further, critics argue that if BTL—already the dominant player—absorbs SMART, Belize would return to a de facto telecommunications monopoly.

In this article, we discuss M&As in the Caribbean telecoms sector, key drivers and implications, the region’s history and a likely trend into the future.

 

The impact of M&As on telecoms

When two telecommunications giants merge, or a larger entity acquires a smaller rival, the ripple effects are felt by shareholders and consumers alike. However, decisions to merge, acquire or be acquired are often driven by the desire of the participating telcos to survive, and hopefully even thrive, in challenging markets.

First, it must be emphasised that telecoms is a capital-intensive industry. Building cell towers, rolling out cables and laying undersea cables is expensive, which is magnified by the regular infrastructure maintenance and upgrades that must also be undertaken. The pressure to fund and deploy next-generation technology can put some companies at a disadvantage. M&As allow companies to pool resources, reduce redundant costs and become more competitive.

Moreover, although it has been reported in several quarters that the telecoms, and more specifically the internet, rates in the Caribbean region are among the highest in the world, it must also be highlighted that, generally, and as Small Island Developing States, there is a high cost to doing business in the region. Additionally, matters related to affordability must be considered, especially among the lower-income demographic, which comprises a considerable portion of Caribbean society. Further, in the regulated environment that exists in most Caribbean countries, caps have usually been established regarding the amount of profit (or rate of return on investment) telcos can realise, which in turn demands that companies operate efficiently and competitively.

On the consumer side, the most significant downside when an M&A occurs is the reduction of choice. In many markets, M&A moves the needle from a “competitive four-player market” to a “stable three-player market” or, in the case of many Caribbean nations, a duopoly. However, with fewer competitors, there is little incentive for providers to engage in price wars, which can lead to higher monthly bills for consumers. Additionally, without the threat of a customer leaving for a better rival, the drive to improve customer service can stagnate and even diminish, which ultimately leaves consumers with little or no options.

 

The Caribbean context: From many to a few

The Caribbean region’s telecoms story is one of rapid oligopolisation. In the early 2000s, the region saw a wave of liberalisation that broke the long-standing monopoly of Cable & Wireless. This liberalised environment gave birth to the “Digicel era”, where fierce competition due to multiple players led to a massive drop in mobile/cellular prices and a surge in connectivity in most countries.

However, over the last decade, in particular, there has been a reversal in this competitive posture. The landmark acquisition of Columbus International (Flow) by Cable & Wireless (LIME) in 2015, followed by Liberty Global’s acquisition of Cable & Wireless in 2016, effectively recreated a regional titan. Today, most Caribbean markets are a “two-horse race” between Flow (Liberty Latin America) and Digicel. Although the existing duopoly offers some degree of market stability, it has also led to a broad range of concerns, including high rates, affordability, infrastructure resilience and the limited deployment of advanced technologies.

 

Having said this, in a small island or developing economies, a merger is not just a business deal: it is a shift in the national infrastructure. Although there is often an imperative by regulators and policymakers to maintain the status quo, that is a stable and predictable output, this must also be balanced by the need for telcos, most of which are privately owned and are answerable to shareholders, to adapt to maintain efficiency in the face of changing market conditions, consumer preferences, and technology.

Into the future, the Caribbean region is likely to witness further consolidation in its telecoms and ICT/digital sectors. The challenge for the region remains: in a world of limited choice, how to allow companies to scale up without leaving consumers behind.

 

 

Image credit:  pressfoto (Freepik)