{"id":82512,"date":"2016-05-27T09:18:44","date_gmt":"2016-05-27T14:18:44","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=82512"},"modified":"2017-04-07T19:29:33","modified_gmt":"2017-04-08T00:29:33","slug":"brimming-expectation-liberty-global-caribbean","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2016\/05\/brimming-expectation-liberty-global-caribbean\/","title":{"rendered":"Brimming with expectation? What Liberty Global could mean to the Caribbean"},"content":{"rendered":"
The sale of Cable & Wireless to Liberty Global has been completed. As the region waits to see what impact this new firm will have, here we share a few of our thoughts on that subject.<\/span><\/i><\/p>\n As stated in <\/span>Early thoughts: proposed takeover of Cable & Wireless by Liberty Global<\/i><\/b><\/a>, Liberty Global is an unknown quantity in the region. Although the firm has been in existence since 2005, in the Caribbean it has only had a presence in Puerto Rico. Outside of the region, it is well known for cable television, a segment that tends not to have the stringent oversight experienced by traditional regulated telecoms services, such as fixed-line voice and mobile\/cellular communications, which are critical markets in the CWC acquisitions.<\/span><\/p>\n CWC\u2019s history in the Caribbean has been long \u2013 over 150 years \u2013 and over the past 20 to 25 years, increasingly tense, and at times acrimonious. Although the firm stepped up its game to compete with Digicel in the mobile\/cellular communications market, the fixed-line telephony, and to a lesser degree the Internet service, were neglected. Complaints about the firm\u2019s service, such as being unresponsive to customer needs and the protracted process for resolution of issues, to name a few, are rife across the region. <\/span><\/p>\n Could a new player, with no real history in the Caribbean to speak of, but hopefully a different playbook from its predecessor, be the ticket? That is what people, from the average Joe to consumer interest groups and policymakers, across the region are hoping.<\/span><\/p>\n With the sale last year of Columbus International Inc., which had operated the popular brand, Flow, in the region to Cable & Wireless plc, in some countries where both firms had a presence, they have merged into a single operation. As a result, and for certain services, either a monopoly or a duopoly now exists. Unfortunately, due to the relatively small population sizes of most Caribbean countries, and their relatively mature telecoms markets, generally the region be seen as a hotbed for new, greenfield, infrastructure telecoms\/ICT investment.<\/span><\/p>\n However, Liberty Global\u2019s Chief Executive Officer, Mark Fries, is of the view that there is still considerable potential for telecoms and ICT to develop in the region:<\/span><\/p>\n This is a big moment for us and I couldn\u2019t be more excited about the potential of LiLAC and CWC together. We are joining two high-growth businesses in a region that is both underpenetrated and underserved in broadband, mobile data and pay TV services. By combining our operations, we are creating a unique and well-diversified Latin America and Caribbean investment vehicle, which we believe will enhance long-term equity value for our shareholders.<\/em><\/span><\/p>\n (Source: \u00a0<\/span>Liberty Global<\/span><\/a>)<\/span><\/p>\n<\/blockquote>\n For players that already have a presence in the region, and cognisant of the growing trend for them to become \u201cmulti-play\u201d service providers, there may be considerable room for transformation and growth. Further, as Caribbean countries continue the transition to digital societies, a broad range of opportunities for value-added and enhanced services may also emerge. It is thus the firms that are not flat-footed that may be in a position to capitalise on the ways in which Caribbean countries, and the region as a whole, is evolving.<\/span><\/p>\n
\nEarly in the week of 16 May, Liberty Global plc completed its acquisition of Cable & Wireless plc (CWC) in a transaction valued at approximately USD\u00a07.4 billion (Source: <\/span>Liberty Global<\/span><\/a>), which likely is the largest transaction of its kind in the Caribbean\/Caribbean Community (CARICOM) region. Accordingly, there is much anticipation \u2013 mixed with some trepidation \u2013 of what this new era could mean for the region, the individual countries involved, and consumers.<\/span><\/p>\nA breath of fresh air…?<\/span><\/h3>\n
Diminished competition, diminished growth?<\/span><\/h3>\n
The Digicel factor<\/span><\/h3>\n