{"id":69489,"date":"2014-11-07T09:53:56","date_gmt":"2014-11-07T14:53:56","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=69489"},"modified":"2017-04-07T20:29:07","modified_gmt":"2017-04-08T01:29:07","slug":"early-thoughts-imminent-purchase-flow-lime","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2014\/11\/early-thoughts-imminent-purchase-flow-lime\/","title":{"rendered":"Early thoughts on imminent purchase of Flow by LIME"},"content":{"rendered":"

Some initial thoughts on the intended purchase of Columbus Communications Inc. by Cable & Wireless Communications Plc, and the implications for the Caribbean.<\/em><\/p>\n

Unless you were living under a rock yesterday, the world woke up to an announcement that Cable & Wireless Communications Plc (CWC) intended to purchase Columbus Communications Inc. to the tune of USD\u00a01.85\u00a0billion. This news has relevance in the Caribbean, as CWC is the parent company of LIME, which operates in 17 countries across the region, Latin America and the Seychelles. Columbus Communications Inc. is the parent company for Flow and Columbus Business Solutions that have a presence in several countries throughout the Caribbean. Further, it also owns Columbus Networks, which provides submarine, fibre optic and backhaul connectivity in 42 countries through the Caribbean, Latin America and the Andean region.<\/p>\n

Though the purchase will be subject to CWC shareholder approval, and possibly regulatory approval in countries across the region, the odds \u2013 so far \u2013 are that it will proceed as planned, and should be concluded by the end of the first quarter of 2015. However, beyond the initial surprise, the general sentiment by the \u2018man on the street\u2019 appears to be one of concern. Below are four initial thoughts on this most recent development.<\/p>\n

CWC\u2019s move was a while in the making<\/h3>\n

Over the past few years, reports on CWC tend to focus on the firm\u2019s financials, especially the losses that were being realised in some Caribbean countries. Little attention was being paid to the strategies it intended to implement, which were also regularly communicated. For example, based on the reporting of its performance at the end of March 2013, and the strategic priorities highlighted, in retrospect, the purchase should really not have been a surprise:<\/p>\n

3.\u00a0 Capture data opportunity \u2013 ongoing focus on completing the transition to being a data-led telecommunications provider, capturing the growth opportunities that exist within the region.<\/em><\/p>\n

4.\u00a0 Lead in full service provision \u2013 we will continue to invest in and leverage our position as the number one full service operator in pan-America. This will enable the capture of data growth by both extending the range of customers that can be served as well as creating synergies for data delivery through multi-play services.<\/em><\/p>\n

Our ambition is to grow the business as the leading full service operator in pan-America, with improved margins and increased cash generation enabling greater distributions to shareholders.<\/em><\/p>\n

(Source: CWC<\/a>)<\/p>\n<\/blockquote>\n

Similarly, CWC\u2019s report at the end of the March 2014 calendar year again reiterated the firm\u2019s direction, and in clearer terms:<\/p>\n

Following our successful disposal programme, we have completed a strategic review of the business. Our aim is to deliver sustainable, profitable growth by focusing on four strategic imperatives:<\/em><\/p>\n