ISP Sunbeach Aims for Mid 2006 Mobile Launch
Barbados internet service provider (ISP) Sunbeach could launch a new cellular phone service by as early as mid-year depending on the rate at which the company obtains funding, Sunbeach's CEO Ian Worrell told BNamericas.
Sunbeach is in the process of being taken over by Trinidad & Tobago-based financial group Telecom Holdings (TH), which operates mobile operator LaqTel.
TH is due to make an offer to Sunbeach shareholders by the end of this week to buy their shares in a bid to acquire at least a 51% controlling stake in the company, Worrell said. That process will be open for 30 days. TH has previously said it will offer US$5mn for the 51% share.
Should the takeover bid be completed by the end of February deadline, Sunbeach will then begin looking for funding to build the infrastructure for the cell phone service, which will require an investment of US$14mn to US$20mn, Worrell said. TH will be assisting Sunbeach with the funding.
"If everything goes completely smoothly with absolutely no problems whatsoever, no hiccups, nothing going wrong, the fastest I imagine [the rollout] could be done is 16 weeks after [Sunbeach] has accessed the funds, " Worrell said.
With the acquisition, Sunbeach's shares will also start trading again on the Barbados Stock Exchange (BSE) for the first time since September 28, 2004, when they were suspended due to financial concerns about the company.
Though Sunbeach celebrates this year 10 years as an ISP in Barbados, the company has been trying to secure funding to launch its mobile service since it was granted a license in mid 2003 along with Digicel and Cable & Wireless (C&W).
As part of its bid for Sunbeach, TH has to pay US$400,000 to the Barbados government to retain Sunbeach's mobile license.
BNamericas.com"
Posted to the site on 2nd February 2006
