Proposed Telecom Takeover Divides Belize’s Business Leaders

The proposed telecom deal is splitting Belize’s business community. After talks with Belize Telemedia Limited about its plan to buy Speednet, the Belize Business Bureau says it supports the move, arguing it could boost profits and strengthen the wider economy. But the Belize Chamber of Commerce and Industry isn’t convinced. The Chamber is raising concerns about legal compliance, consumer impact, the purchase price, and possible conflicts of interest, including risks to the Social Security Board. So why the sharp divide? We sat down with the President of the Belize Business Bureau to hear why they believe this deal could drive growth and push profits to as much as $50 million within three years.

 

Arturo Lizarraga, President, Belize Business Bureau

“The six hundred and fifty million that was invested in BTL was so excessive that even the current investment in social security with the dividends that they get is so small that it’s not to pay back or recoup the investment. So we’re still paying the price for that decision. So we see the acquisition by acquiring six hundred and fifty million was paid for two thirds market share. Now eighty million is being paid for the one third market share. So we see that as reasonable. It doesn’t mean that we are happy with the initial we began, but now we’re saying, okay, if we can recoup the money. Why not go ahead and pay the eighty million for the one third, consolidate that market? The mobile market. It’s in our national interest to make sure BT L is sustainable. Despite how we feel about it and how it came about, right? It is in our interest as shareholders to make sure that we get a better return because right now they’re flatlining because it’s a mature market and both SMART and BTL are fighting each other. I will give you one example. Roaming used to bring in fifteen million, but because the foreigners play BT l against smart, they keep whiling down for, they went from fifteen million now to five million. And if they keep going they probably get like almost zero because one offer a better price next year they come around, they offer and flip flop. So I’m saying with this acquisition, BTL will be able to immediately charge fifteen million to foreigners for roaming. And therefore automatically have ten million dollars on the books. That’s just for one package within the context of their product line. And so we feel that the way the deal is structured, no money down, four and a half percent interest while that due diligence is being done and then having been able to operate the organization, you can use the profits from that organization to pay back.”