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Digicel buying Cingular Caribbean
Observer Reporter
Thursday, June 23, 2005
DIGICEL Group has acquired, for an undisclosed price, the Caribbean operations of US telecommunications giant Cingular Wireless, in what is expected to be, by far, the biggest transaction by the Irish company since it came to the Caribbean four years ago.
The acquisition, which will have to clear regulatory hurdles before full consummation, will not only enable Digicel to immediately expand into several new markets: It will create a friendly roaming partnership in the USA that the local firm will be able to leverage for competitive advantage across all its markets in the region.
Cingular Wireless is America's largest mobile phone company with more than 23 million voice and data customers across continental USA. Its large size resulted from its acquisition in October 2004 of rival cell company AT&T Wireless, for the hefty price of US$41 billion.
Its Caribbean subsidiary operates in Bermuda, Anguilla, St Kitts and Nevis, Antigua and Barbuda, and Dominica - islands in which Digicel has no presence - and which therefore represent a genuine and immediate expansion opportunity for the Irish firm.
Digicel also operates in five markets in which Cingular provides services in, in which it is therefore a competitor. These are: The Cayman Islands, Grenada, St Lucia, Barbados, St Vincent and the Grenadines.
Its position in these markets would be strengthened, Digicel said in a press release yesterday, during which it also expressed expectation for a final closure within four to six months.
"We are looking forward to welcoming the Cingular Caribbean operations staff and customers to the Digicel family," said Denis O'Brien, Digicel Group chairman and principal shareholder. "Our industry-leading service and unmatched customer care continue to put us in a position of strength as we rollout a seamless pan-Caribbean telecommunications network."
Digicel buying Cingular Caribbean
Observer Reporter
Thursday, June 23, 2005
DIGICEL Group has acquired, for an undisclosed price, the Caribbean operations of US telecommunications giant Cingular Wireless, in what is expected to be, by far, the biggest transaction by the Irish company since it came to the Caribbean four years ago.
The acquisition, which will have to clear regulatory hurdles before full consummation, will not only enable Digicel to immediately expand into several new markets: It will create a friendly roaming partnership in the USA that the local firm will be able to leverage for competitive advantage across all its markets in the region.
Cingular Wireless is America's largest mobile phone company with more than 23 million voice and data customers across continental USA. Its large size resulted from its acquisition in October 2004 of rival cell company AT&T Wireless, for the hefty price of US$41 billion.
Its Caribbean subsidiary operates in Bermuda, Anguilla, St Kitts and Nevis, Antigua and Barbuda, and Dominica - islands in which Digicel has no presence - and which therefore represent a genuine and immediate expansion opportunity for the Irish firm.
Digicel also operates in five markets in which Cingular provides services in, in which it is therefore a competitor. These are: The Cayman Islands, Grenada, St Lucia, Barbados, St Vincent and the Grenadines.
Its position in these markets would be strengthened, Digicel said in a press release yesterday, during which it also expressed expectation for a final closure within four to six months.
"We are looking forward to welcoming the Cingular Caribbean operations staff and customers to the Digicel family," said Denis O'Brien, Digicel Group chairman and principal shareholder. "Our industry-leading service and unmatched customer care continue to put us in a position of strength as we rollout a seamless pan-Caribbean telecommunications network."
Digicel buying Cingular Caribbean