The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Aliv’s top executive says the COVID-19 pandemic has driven a 50 percent increase in data demand as it works on finalising a $70m loan from its controlling shareholder.

Damian Blackburn told Tribune Business that remote leaning and working via wireless broadband and other data-based products had forced the mobile operator’s engineering team to “work very hard to keep up” with its customers.

“We’ve seen increasing demand for data from the significant number of users of wireless broadband users,” he added. “We’ve seen 50 percent more data demand since the start of the pandemic from those kind of users. It’s driven by those users, as every telecom in the world is experiencing.

“It’s become an imperative that we invest in our network to keep pace with that for the country. We have been investing money in data expansion at a time when revenues stalled and came down from their peak. That’s a challenge but we’ve met the challenge.

“It’s become obvious through this where we need to invest. We might have had the luxury of doing it at a slower pace, but because of the pandemic we had to do it in several months and find clever ways of doing it through software and hardware.”

Mr Blackburn said Aliv, having completed the nationwide roll-out of its network infrastructure, is now investing “several million dollars” a year to upgrade and maintain it. He added that the mobile operator had “not quite finalised” its $70m loan from controlling shareholder, Cable Bahamas.

“It’s very close to being finalised,” he said. “It’s all good stuff. There’s an element of refinancing and an element of providing the funding for phase three of the plan. It’s been a lengthy process but we’re wrapping it up now.”

Cable Bahamas, which holds 47.25 percent of Aliv as well as Board and management control, with the Government owning the remainder, revealed in its 2020 annual report that the loan will repay the vendor financing received from equipment supplier, Huawei, as well as $22m in “deferred payments” owed by the mobile operator to the BISX-listed communications provider.

“Cable Bahamas agreed to provide a secured $70m long-term loan facility that enables the Huawei network vendor leasing finance to be fully repaid early, repay outstanding deferred payments for using towers, transmission and other services to Cable Bahamas, and provide Aliv with cash reserves to fully fund the long-term business plan,” the annual report said.

“Aliv’s increasing revenues and operating cash, and reduced capital investment requirements (net of insurance proceeds relating to Hurricane Dorian and sale of 21 tower sites to Cable Bahamas), led to Aliv’s lowest annual cash requirement of $4.2m in financial year 2020 funded from cash on hand.

“This was achieved with the support of Cable Bahamas who agreed to convert $22m of deferred payments due under its master service agreements with Aliv to a long-term secured debt facility in November 2020. Aliv has invested $52.9m over four years in acquiring and retaining its customer base through the provision of device subsidies, sales commissions and other costs.”