Belize Business Bureau Says “Competition Destroys Profits”

The Belize Business Bureau has come out in support of Belize Telemedia Limited’s (BTL) proposed acquisition of Speednet (SMART), describing it as “a sound economic business proposal” that would benefit not only shareholders but the country as well.

In a press release dated February 3, the Bureau argued that BTL’s revenues have stagnated at around $32 million annually and argued that the acquisition would provide the growth needed to ensure long-term sustainability. According to the Bureau, the deal could push profits to $50 million within three years, with profit margins rising from under 10% to above 20% within two years. 

The Bureau said shareholders stand to gain significantly, noting that earnings per share could increase from under thirty cents to more than a dollar over a five-year payback period. “Return on a five-dollar share is expected to increase from five and a half cents to under ten cents, in effect doubling the dividends,” the release stated, a change the Bureau said would be important for Social Security fund contributors.

The Bureau also addressed concerns about worker protections, saying due diligence should include severance, arbitration, drawback rights, and a non-compete clause. A proposed ‘data‑free Sunday’ is said to benefit the elderly, unemployed, and student population.

The release concluded with the statement, “Competition destroys profits,” adding that rivalry between SMART and BTL has reduced the incomes of both companies.

Its final line read, “Sometimes we need to look at proposals more closely and with less prejudice.”