Cable & Wireless has been given permits to operate in Martinique and Guadeloupe, where the British company will compete with France Telecom in the two French overseas departments located in the eastern Caribbean.
This expansion brings to 17 the number of countries in the region in which C&W operates. It has traditionally provided services in the English-speaking countries of the region – its most profitable theatre.
C&W has become more aggressive in seeking new markets in the region over the past two years, following the voluntary termination of its exclusive licences in several countries in which it has long held a monopoly. This liberalisation of the market has brought competition for C&W, particularly in te provision of mobile and fixed line telephony.
“Cable & Wireless’ operations have been a resounding and perennial success in the region,” said Errald Miller, chief executive of Cable & Wireless (West Indies), on announcing the company’s entry into the French islands. “This investment and those that we continue to make in our current operations … will assist the engines of growth within these territories to realize their true potential.”
The company did not say publicly how much it is investing in Martinique and Guadeloupe.
C&W reported that while its revenues fell in its last fiscal year, C&W Regional, which runs fixed-line and mobile businesses across the Caribbean, continued to perform strongly, with revenues up 8 per cent over the previous year at οΎ£1.46bn ($2.3bn).
The announcement of C&W’s expansion into the French Caribbean islands coincides with a setback in the Bahamas. The company had made a bid for the Bahamas telecommunications provider that is being privatised. However, it was not on the short list of bidders that the government is considering.
C&W officials have not commented on reports that the company wants to buy a majority stake in Guyana Telephone and Telegraph, which is owned by Atlantic Tele Network of the US. Cornelius Prior, chief executive officer of ATN, said that there had been a “credible, unsolicited” offer from C&W for an 80 per cent stake in ATN.
In a series of agreements that have seen C&W prematurely terminating its licences, Caribbean governments contended that exclusive licences are hindering economic development, stifling competition, and are inconsistent with obligations to the World Trade Organisation.
By Canute James, The Financial Times
