The Telecommunications Services of Trinidad and Tobago (TSTT) has announced their acquisition of Massy Communications, seeking to capitalize on the synergies of both companies.
Emile Elias, Chairman of TSTT, the country’s largest telecommunications provider reported that a signed Share Purchase Agreement to acquire the 100% shareholding of Massy Communications Ltd for $255 million was executed and brings an additional 34,000 homes and a Fibre to the Home system to TSTT.
The agreement includes all of Massy Communications infrastructure relating to its Enterprise and Consumer networks, all existing Enterprise and Retail customers and the entire operational and business support systems.
Massy Communications is part of the wider Massy Holdings Group under The Information Technology & Communications Business Units (ITCBU) – Consumer Broadband/IPTV.
Massy Communications chairman Fenwick Reid, said the company invested TT$213 million in its cable layout, but it was off-loading it because there were too many players in the market. This now means there is one less player in the cable market in Trinidad and Tobago, which includes Cable and Wireless’s Flow, TSTT’s blink and Digicel Play
According to Mr. Reid, “TSTT will take it where the business needs to go. Given the competitive landscape for high-speed broadband and TV services in Trinidad and the intense capital costs of deploying fibre optic networks, some industry participants have been seeking collaborative ways to avoid duplicative capital expenditure”.
Since 2006, Massy Communications, formerly Three Sixty Communications, has been building out its telecommunications network and expanding its services; to currently offer a range of services which include:
– Fibre Optic (FTTH) Infrastructure deployment which is utilised to deliver High Speed Internet and IPTV to residential and SME customers.
– Dedicated Internet/IP transit
– Clear Channel Domestic/ Metro Ethernet and International Private Lines
– International Wholesale Termination and Enterprise Voice Solutions
In March 2016, they successfully launched Massy Internet | TV, (IPTV) providing both internet and TV to residential subscribers.
Despite the delayed launch, they completed Phase 1 of the project which involved extending the fibre-based network to a number of communities across Trinidad and Tobago.
The financial performance of the ITCBU was reported to have been negatively impacted by costs incurred in the start-up of the Massy Internet | TV (IPTV) project.
A significant element of TSTT’s current strategic plan involves the deployment of both wired and wireless high-speed broadband internet capabilities, throughout the entire nation. This includes investment in fibre optic solutions together with the associated technological infrastructure and systems.
In 2016, TSTT secured $1.9B in financing to create a Fibre to the Home (FTTH) solution throughout all of Trinidad and Tobago, including areas where Massy had already built out a robust network.
The acquisition of Massy Communication is expected to accelerate TSTT’s deployment of its next generation network and facilitate the opportunity to immediately deliver a new suite of products and services to existing customers.
TSTT chairman Emile Elias warned other competitors should view the move “with terror”. “I hope they are terrified, as they should be. We are aggressively pursuing our agenda,” he said. BM
Footnote
Telecommunications Services of Trinidad and Tobago Limited is jointly owned by National Enterprises Limited (NEL) which in turn is majority owned by the Government of Trinidad and Tobago, and Cable & Wireless (West Indies) Limited, (C&W). NEL owns 51% of TSTT’s issued share capital, while C&W holds 49%. TSTT is the country’s largest provider of communications solutions to the residential and commercial markets and its leading edge products are designed around its IP-based core infrastructure and marketed under its BLINK and Bmobile brands.