BTL-Speednet Buyout Advances, But BCCI Says Belize Is Not Ready

BTL’s board has signed off on the proposed eighty-million-dollar acquisition of Speednet, but the move is doing little to ease concerns in the private sector. Instead, it is bringing one key concern into sharper focus: who protects consumers if Belize’s two major telecom providers come under one roof? The Belize Chamber of Commerce and Industry says the approval came before the proper legislative and regulatory safeguards were put in place. BCCI President Giacomo Sanchez says the process has moved too quickly, and that Tuesday’s decision leaves the public with more questions than answers. In fact, he describes the proposed purchase as illogical.

 

Giacomo Sanchez, President, BCCI

“As you will appreciate, the BCCI isn’t against any type of merger in business and interfering in private matters. But this is significantly of a private nature, given that government has a great deal of interest and Social Security’s participation as an equity holder in BTL. If you look at over the past few months, the issue came up and we addressed it at the time and there were consultations. Coming out of those consultations, we were still not satisfied that we were getting value for money. We were still not satisfied that the regulatory environment was there to give any comfort to consumers, post-acquisition by BTL of this Smart Speednet enterprise. What we have done is essentially put the cart before the horse. We should have put in the proper legislative safeguards and guardrails and then we can see the proceeding of a fluid transaction. However, there was a rush and I honestly don’t know why there was a rush in concluding. To me it was more of a seller driven transaction, rather than a buyer driven transaction which is not good for the people of Belize. I think principally in the consultation it was said, we are not acquiring assets, which are assets that are diminishing. I would have preferred that, or at least if I was in their show, to be spending eighty million dollars on improving the BTL infrastructure particularly in the area of the cloud environment. That is where some money can be made for BTL going forward. I just don’t see logic behind it.”

 

Will PUC Put Consumers First in BTL-Speednet Review?

 

BTL may be one step closer to buying Speednet, but the final say does not belong to the company’s board. That decision now falls to the Public Utilities Commission, which is required by law to decide whether the deal is in the best interest of Belizean consumers. The concern tonight is whether that review will be thorough and independent, or whether the outcome is already all but decided. We put that question to Chamber President Giacomo Sanchez, who says the PUC must prove that the public interest comes first.

 

Giacomo Sanchez, President, BCCI

“It is to be seen. Until we see something tangible coming out of the PUC, we won’t be able to make a determination at this point, because we don’t know what they will conclude and at the end of the day, they need to give the necessary regulatory approval for the transaction to be finalized. Over all, I believe what has occurred is that the transaction is a foregone conclusion, because that vote yesterday essentially tells the public and tells everyone that this deal is going through one way or the other and from the PUC standpoint it is just a matter of timing as to when they give some sort of indication that it would have been approved.”

 

Reporter

“So you don’t trust that the PUC is acting in the best interest of the public?”

 

Giacomo Sanchez

“I think, until we hear from PUC I will reserved my comments on that.”

 

Reporter

“So do you consider it a done deal?”

 

Giacomo Sanchez

“From a BTL standpoint yes, it is a done deal. I don’t think this will go back or reversed. It is just the nature of things.”

 

Reporter

“But the PUC has to approve, otherwise BTL and Speednet would be in contravention of the telecoms act.”

 

Giacomo Sanchez

“Well, the honest truth is that there may be some legal maneuvering to circumvent that. That is just the reality of how things happen and I can see that happening.”

 

This afternoon, the chamber’s executive met with its social partners to chart their next move on the proposed acquisition and other governance concerns.

 

Senator Wade Says BTL-Speednet Deal Threatens Independent Media

 

For Senator Louis Wade, the proposed BTL-Speednet acquisition is not just another policy debate. As the owner of Plus TV, he says the deal carries real consequences for independent media and for his own business. Wade insists he has not changed his position and still believes the buyout is not in the best interest of Belizeans. In fact, he argues that of all the senators who walked out on Tuesday, he stands to lose the most if the deal moves forward. Here is how he puts it.

 

Louis Wade, Owner, Plus TV

“I made it very clear that out of every single person in chambers, those who walk out or don’t, I stand to lose more than any of them. I own a media house, Plus TV and any monopoly is a threat as it has been in the past to what we do. So, I have my entire investment that comes at risk. But I was not there to represent Plus TV. I was not there to represent my own interest. I was there to represent my constituency, which is the church. I was the person who initially got the support, the united support of the senators, the independent senators to come out with a joint position. That joint position was again issued yesterday, and I need to make it clear that our press release with my name on it was released before a decision was made to walk out. So, my independent senators know that I stand with them. The only thing I did not do was walk out.”

 

Wade says he stands by yesterday’s decision and would do it again if the opportunity presents itself.

 

Attention readers: This online newscast is a direct transcript of our evening television broadcast. When speakers use Kriol, we have carefully rendered their words using a standard spelling system.

 

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