The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian telecommunications provider’s principal is preparing to “pop champagne bottles”, after the Government finally approved a deal that will unleash $50 million in investment and the creation of up to 100 local jobs.

Edison Sumner, IP Solutions International’s (IPSI) chief executive, hailed as “fantastic” Prime Minister Perry Christie’s confirmation that his administration had signed off on the sale of a majority stake in the company to UK-based Limitless Mobile.

Mr Christie, speaking at Friday’s press conference to mark the closure of the Bahamas Telecommunications Company’s (BTC) ‘2 per cent’ deal, suggested that the IPSI/Limitless tie-up showed the Government’s commitment to liberalising the cellular market.

“In the last few hours, the Government has approved a merger between an English company and a Bahamian company, thereby giving that Bahamian company a partnership with a significant European company with significant international roaming agreements,” the Prime Minister said. “The process, therefore, has begun.”

Although he did not name the two companies involved, Mr Christie was clearly referring to Limitless’s acquisition of a majority equity interest in IPSI. The two companies have been waiting at least six months for government approval, with the Utilities Regulation & Competition Authority (URCA) having blessed the deal in February 2014.

Contacted by Tribune Business, Mr Sumner said he was still awaiting official written confirmation from the Government that IPSI’s merger/acquisition by Limitless had been approved.

He added, though, that he had been advised via text message the previous evening that the necessary approvals had been forthcoming.

“We are waiting now for the official communication to come back to us before we get excited about it. I don’t want to jump through hoops,” Mr Sumner told Tribune Business.

“I don’t have it in writing, but I have been advised that the application before the Government has been approved. I got a text message last night, but I’m waiting for the official response from the Office of the Prime Minister.”

Informed of the Prime Minster’s comments by this newspaper, Mr Sumner replied: “If that’s the case, that he made reference to it in public, then I will get very excited.

“If he said so publicly, I guess it’s a deal. I should be popping champagne bottles if that’s the case. I’m very excited, and will communicate this to my colleagues in the UK.”

The deal represents a potentially good marriage for both parties. From IPSI’s perspective, the majority acquisition by Limitless will give it access to the financing needed to complete the full build-out of its ‘Triple Play’ infrastructure throughout the Bahamas. It will thus enhance its ability compete with the Bahamas Telecommunications Company (BTC) and Cable Bahamas.

For Limitless, the acquisition is the first step in its bid to acquire the second Bahamian cellular/mobile licence that is likely to be made available shortly via a competitive auction. It also gains a platform from which to roll out its services into the wider Caribbean.

Mr Sumner, who is also the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, previously told Tribune Business that some 80 per cent of IPSI/Limitless’s planned $50 million capital expenditure would be invested in the Bahamas once the deal was approved.

That investment programme, he added, would roll-out over the 12-24 months immediately after the deal’s closing.

“It’s exciting times,” Mr Sumner said previously. “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.”

IPSI’s name is now set to become Limitless Communications (Bahamas), and it has been finalising lease terms for a corporate office presence in this nation.

It is already licensed to provide fixed-line, Internet broadband and TV/video services, and needs to increase network capacity for their seamless delivery.

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

“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.

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.

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.