By Al Edwards, Business Co-ordinatorDIGICEL HAS been granted one of three exclusive licences to operate a mobile network in Barbados. One of five competitors, the company that also operates in Jamaica won the much sought after agreement to provide the island's telecoms users with the first GSM mobile service.
Digicel's chief executive officer, Seamus Lynch, stressed that the work had only just begun for Digicel in the Eastern Caribbean. "We've made tremendous progress. We have a great team down in Barbados and in all the territories. We're focused on providing the best quality network and a clear choice in telecommunications to the people of the Caribbean," he said.
With the groundwork already laid for launching its mobile networks in St. Lucia, St. Vincent and Grenada, Digicel is cutting a clear path through the Eastern Caribbean. These latest developments in Barbados indicate that Digicel is gearing up to replace the once dominant Cable & Wireless as the region's leading mobile telecoms provider.
The announcement follows the company's recent million-dollar partnership with New Millennium Telecom Services N.V. (NMTS) of Aruba. With the Aruba agreement, NMTS will immediately begin trading under the name Digicel in Aruba.
Commenting on the partnership with Digicel, one of NMTS's senior managers, Andin Bikker, said: "Digicel is a trailblazer in every sense of the word. We are excited about teaming up with a company that does its homework and knows the markets that they go into. Digicel has demonstrated on an international basis its skills in challenging monopolies, rolling out state-of-the-art cellular networks and providing real benefits back to the consumer. We are totally committed to providing customers in Aruba with a mobile phone service that offers superior products and services with value for money, supported by a state-of-the-art custom-built GSM network."
The company has announced plans to invest 50 million florins (US$30 million) over the next 12 months and employing up to 50 people in its operation. Personnel from Digicel Jamaica have been deployed to assist with launch and start-up operations in the island. The announcement and progression of the plans is seen as the final stage of preparations to launch the new mobile telephone network in Aruba.
Mr. Lynch added that he saw Aruba and NMTS as a natural fit for the Digicel organisation. "NMTS has demonstrated a passion for bringing what is best to the Aruban consumer and championing their cause," he said. "Aruba consumers have been starved of a quality product at affordable rates and Digicel will provide that choice," said Mr. Lynch. The main outstanding issue for Digicel now is interconnection with the present network in Aruba. The company is confident that this issue will be resolved in the near future.
Aruba is predicting an explosion in cellular growth over the first 12 months with mobile penetration predicted to rise to more than 75 per cent. The country is anticipating the spin-off benefits of competition to the overall economic environment, and the activity generated by additional employment and infrastructure will stimulate growth in both Barbados and Aruba.
Speaking with Wednesday Business yesterday, Mr. Lynch said: "The licence in Barbados is our seventh in the Caribbean and we will be investing US$50 million and employing between 60 and 70 people there. Strategically, Barbados is very important to us because it serves as a hub for the eastern Caribbean and has one million visitors a year, which spells good news for our roaming service. We will be partnering with Ericcson and our local partners in Barbados will be Kiffin Simpson and Bizzy Williams who will be investing through Warren Telecoms."
Digicel will now be looking to acquire licences in Trinidad & Tobago, The Cayman Islands and Turks & Caicos. Mr. Lynch said Digicel will be launching in St. Lucia in about four to six weeks time and that it has already secured an interconnection deal there. It next plans to roll out a service in St. Vincent, followed by Grenada, Aruba then Barbados.
