Satellite Networks

Sub-sea joint venture for Central America & Caribbean

A new joint venture between Cable & Wireless Communications (CWC) and Columbus Networks will provide international wholesale capacity to both companies and third party carriers across Central America...

A new joint venture between Cable & Wireless Communications (CWC) and Columbus Networks will provide international wholesale capacity to both companies and third party carriers across Central America.

CWC and Columbus operate substantial and largely complementary sub-sea cable networks in the Caribbean and Central American region, meaning that the joint venture will have a network platform of approximately 42,000 kilometres with connectivity to 42 countries.

Demand for data capacity is growing rapidly in this region, driven by the increasing availability of, and consumer demand for, mobile data and fixed broadband services.  The alliance places both parties in a strong position to meet growing capacity demands.

The joint venture will initially operate on an agency basis by providing joint sales and marketing services for each of CWC’s and Columbus’ international wholesale capacity services. Columbus has a 72.5% majority share in, and management control of, the joint venture and CWC has a 27.5% share with appropriate minority protections. 

If the two firms gain regulatory approval to do so, they will contribute their sub-sea assets to the joint venture. Prior to this however, they will retain complete ownership and control of their respective existing networks in the region.

Once the applicable approval requirements and conditions have been met, the joint venture will then assume ownership and management control of the international wholesale capacity operations of CWC and Columbus and all new investments in infrastructure will be made, and owned by it.

“This joint venture aims to provide us with access to a secure, long-term supply of international data capacity to support our retail businesses in the pan-America region. It will also enable us to better monetise the excess capacity we have on our networks and in so doing offer high capacity and resilient solutions to our customers”, said Cable & Wireless Communications Chief Executive Tony Rice.



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