VOLUME 11 ISSUE 17

Page 1

MAY 1ST, 2015 – MAY 8TH, 2015

Website: www.suntci.com

VOLUME 11 - NO. 17

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$19MILLION LOSS From Islandcom by Hayden Boyce Publisher & Editor-in-Chief

HOUSE SPEAKER AND MP VISIT CLEMENT HOWELL HIGH SCHOOL

T

he company which owned IslandCom in the Turks and Caicos Islands, said it sold the business to LIME because it didn’t make financial sense to keep it; but it lost nearly US$20million in the process. Reported results for the first quarter ended March 31, 2015, Atlantic Tele-Network, Inc., which is headquartered in Beverly, Massachusetts, stated: “We made the difficult decision to sell the Company’s holdings in Turks and Caicos in this year’s first quarter, as we concluded that we could not achieve the necessary economies of scale and market share to earn positive returns on our investment there. As a result of this sale, we recorded a loss of $19.9 million in the quarter on the deconsolidation of this business resulting from the accumulated prior period net losses that were previously allocated to noncontrolling minority interests. In February this year LIME announced that it acquired the assets of Islandcom in what sources said was a multi-milliondollar deal. Under the transaction, LIME will assume the networks, licenses, spectrum and subscribers. Not only will the deal give LIME automatic access to Islandcom’s customer base, but will also pave the way for LIME to acquire the prized LTE portfolio, cementing its position as possessing the fastest mobile network in the country. Up to Press time it could not be confirmed if LIME will retain any of the Islandcom staff or keep the offices in the IGA complex, but this seems highly unlikely, given that LIME recently made several employees redundant and its Leeward Highway headquarters has a significant amount of unused office space. Despite its attractive and innovative packages, IslandCom, which was granted a licence in 2006 and launched in 2009, has always been a distant third in the telecommunications market,

Clement Howell School students on Providenciales appear eager as they interact with Speaker of the House of Assembly Hon. Robert Hall (in ceremonial garb). The occasion was a visit by the speaker to bring awareness to public schools across the country on how the House and government work, and also to deal out a bit of political, social and cultural history of country. The speaker was joined by Member of Parliament for the Blue Hills Constituency Hon. Goldray Ewing (in suit) and Lydia Butterfield (not in picture), Deputy House Clerk. Prior to visiting Providenciales, Hall also graced the schools on South Caicos and North Caicos. Hall told the students that it was he, during his tenure as minister for education, that the Clement Howell High School was established. behind leader Digicel and LIME. In October 2009 it was announced that Bermuda Digital Communications Ltd. (BDC), a subsidiary of Atlantic Tele-Networks, Inc. (NASDAQ: ATNI), had purchased a strategic stake in the company, making it Islandcom’s lead strategic shareholder. BDC, which operates under the CellularOne brand in Bermuda, contributed its financial and strategic resources to develop Islandcom into a leading telecommunications company. With the new investment, Islandcom added cell sites to expand wireless coverage across Turks & Caicos and introduced agreements that allowed customers to roam when they are travelling outside the country. In early 2013, Islandcom Wireless

was awarded one of the spectrum licenses for LTE technology. The decision by the Commission was a huge deal for the telecommunications companies in the Turks and Caicos. All three companies went head to head for the spectrum licenses that would be awarded to only two carriers. Meantime, Atlantic Tele-Network, which provides telecommunications services to rural, niche and other under-served markets and geographies in the United States, Bermuda and the Caribbean, noted that exclusive of this one-time loss on this deconsolidation stemming from the sale to LIME, net income attributable to ATN’s stockholders2 was $9.6 million, or $0.60 per diluted share. In last year’s first quarter, net income from continuing

operations attributable to ATN stockholders was $7.8 million, or $0.49 per diluted share. Michael Prior, the company’s Chief Executive Officer, said the first quarter operating performance represented a good start to 2015. “We posted strong year-on-year revenue growth driven by our U.S. wireless business and the addition of the first full quarter of operating results from our renewable energy acquisition, completed late last year. These increases more than offset declines in our International Integrated Telephony segment and flat to modestly lower year-on-year comparisons in our wireline and international wireless businesses,” he noted. Continued on page 5


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