The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamas-based communications provider will invest at least 80 per cent of its planned $50 million capital expenditure programme in this nation, once the Government approves its majority acquisition by an international player.

Edison Sumner, IP Solutions International’s (IPSI) chief executive, told Tribune Business that the capital investment to complete the carrier’s Bahamas-based infrastructure, and enhance staff capabilities, would roll-out over a 12-24 month period once Limitless Mobile acquired a majority stake in the business.

The purchase was approved by sector regulator, the Utilities Regulation & Competition Authority (URCA), in February, and Mr Sumner expressed hope that the deal was “close” to receiving full government approval.

Limitless’s entrance into the Bahamian communications market needs to be approved by the Cabinet, via the National Economic Council (NEC), and Mr Sumner added: “We believe we’re close to having it complete now.

“It hasn’t been sitting in abeyance. We have been working feverishly. Now we have provided the Government with everything they have requested from us, I believe it’s a matter of completing the formalities. The ball is in their court. As soon as that’s done, we’re ready to go.”

While Limitless’s main interest in entering the Bahamas is acquiring the second cellular licence due to be issued by the Government, it has ambitions to become a pan-Caribbean player and use this nation as its headquarters platform for achieving such an objective.

Mr Sumner added that the build-out of IPSI’s existing wireless-based network infrastructure in the Bahamas also needed completing, while staff needed to be hired and trained to achieve Limitless’s wider goals.

As a result, IPSI/Limitless are preparing a major capital investment programme regardless of whether they win the second mobile licence.

“It’s exciting times,” Mr Sumner told Tribune Business. “We’re looking at a full infrastructure build-out to the tune of $40-$50 million.

“Some has been spent already, most of it has yet to be spent. Most of it is going to be spent here in the country. At least $40 million of that will be on infrastructure development in the Bahamas.

“The funds have already been identified for specific purposes as it relates to infrastructure and human resources development in the Bahamas.”

The IPSI chief executive said most of this sum would be spent within the first 12-24 months post-government approval, with the infrastructure build-out taking “anywhere from six months” and up to finish.

Mr Sumner said IPSI was already licensed to provide fixed-line, Internet broadband and TV/video services, and needed to increase network capacity for their seamless delivery.

And he revealed that IPSI was currently “finalising lease terms for a corporate office presence” in the Bahamas, a facility that will ultimately become Limitless’s Caribbean headquarters.

Network redundancy was also being built in the US and UK via IPSI’s relationship with Limitless, and Mr Sumner told Tribune Business that the Bahamian carrier would be re-named Limitless Communications (Bahamas) once final government approval is received.

“Once we would have complete approvals, part of the next phase is to completely re-brand the company,” Mr Sumner told Tribune Business.

“We have a very aggressive plan in place. We’ll be expecting to have a full launch and re-branding.”

The Limitless acquisition is intended to create 100 jobs at IPSI in this nation, but Mr Sumner said this did not account for the indirect opportunities presented by outsourcing, permanent and temporary contracts, and franchising.

He added that he, as IPSI’s Bahamian chief executive, had “a tremendous sense of social responsibility” when it came to the company’s build-out, creating jobs and giving Bahamians the chance to develop careers in a lucrative industry.

“It’s an opportunity for me to show how we can develop skills in the country, enhance a sector that is on the brink of wonderful things,” Mr Sumner said, adding that it was ‘more than a business’ for him.

Asked how quickly he and Limitless wanted the Government to issue a tender, and begin the bidding process for a second cellular licence, Mr Sumner replied: “Yesterday would be nice.”

He quickly qualified that, adding: “We do know there is a process the Government is going through, we respect the process, and we’re mindful there are some things they have to consider and work out before they determine what the next phase might be.”

Mr Sumner said IPSI/Limitless would provide feedback to the Government once the formal bid process for the second cellular licence was issued.

He added that most of IPSI’s network will be reserved for increased cellular/mobile capacity in anticipation of winning a second cellular licence, while enhancing capacity for the services it is currently licensed to provide.

Limitless owns and operates a mobile network in the USA, which is currently being upgraded to 4G/LTE standards. In Europe, it owns and operates a mobile network in the UK, Germany, Denmark, Poland and Sweden.

Mr Sumner also expressed his and IPSI/Limitless’s “deepest condolences” to the family of the late Virginia Damianos, one of the company’s founding shareholders who passed away last week.

He said Mrs Damianos would be “sorely missed” by IPSI, saying the company had suffered a “tremendous loss”. He described her as the firm’s “Queen Bee”.