California-based telecoms holding company Trans World Telecom (TWT) plans to launch its Guyana-based GSM 900 mobile affiliate Cel*Star in 3Q03 with capacity for 30,000-40,000 users, TWT Caribbean business development VP Greg Libertiny told BNamericas.
Cel*Star and TWT do not believe the market is close to saturation, in contrast to recent comments by Cornelius Prior, chairman and CEO of Atlantic Tele-Network (ATN) (Amex: ANK), which controls incumbent operator GT&T. Libertiny thinks Cel*Star will attract first time users who have been waiting for the advanced services GSM allows. Additionally, the company expects to acquire some of GT&T’s existing customers.
The executive expects Cel*Star to reach an interconnection agreement with GT&T within the next few weeks, he added.
Cel*Star obtained its license in February 2001 and agreed to partner with TWT in 2002. TWT is investing US$20mn in the project, through a mixture of proprietary and institutional financing.
The company is in the process of building out its tower network and in addition to equipment already ordered Libertiny expects to announce a core supply agreement with either Siemens (NYSE: SI) or Nortel (NYSE: NT) shortly.
Elsewhere in the region, TWT is bidding for a 49% stake in Bahamas-based state run telco BaTelCo, and is already building out a network in Grenada, he said, adding the Grenada project is a mainly wireless network for fixed and mobile service, and should be commercially operational for the northern hemisphere summer.
Last week the Barbados authorities rejected TWT’s application for a mobile license, but the company plans to bid in the next two phases of deregulation there, Libertiny added.
By Phil Anderson, BNamericas.com
