Limitless poised to challenge Digicel for Bahamas mobile license

The Bahamas could see a new competitor bidding for a license to enter its mobile market which is currently monopolized by the Bahamas Telecommunications Company (BTC).

Bahamas-based IP Solutions International (IPSI) has set aside 40mn Barbadian dollars (US$39.9mn) to invest in infrastructure in the country over the next two years, news website Tribune 242 reported.

But IPSI is waiting for government approval of its acquisition by Limitless Mobile Holdings, it added.

Limitless Mobile Holdings is reportedly backed by Richard Worley, former chairman of Morgan Stanley Investment Management, and Charles Ryan, co-founder, chairman and CEO of Deutsche UFG, one of Russia's leading investment companies.

When Cable & Wireless Communications (CWC) acquired a 51% stake in state telco BTC in April 2011 it was granted a three-year post-privatization cellular monopoly, which expired on April 6.

The government is due to announce the launch of an auction for licenses for new competitors to enter the market. At the front of the queue will be CWC's arch-rival in the Caribbean, Irish-owned Digicel.

According to Tribune 242, Limitless Mobile's acquisition of an 80% stake in IPSI has already been approved by the Utilities Regulation and Competition Authority (URCA) but must also be cleared by the cabinet via the National Economic Council (NEC).

IPSI received an operating license in October 2009 and WiMAX spectrum in January 2010 and rolled out a WiMAX network in New Providence and Abaco, a network it plans to expand. Once taken over, the operator would re-brand and re-launch.

Limitless indirectly holds a 49% stake in US mobile provider Limitless Mobile (previously known as Keystone Wireless), which offers 2G services in central Pennsylvania and is currently in the process of rolling out 3G and 4G services, TeleGeography reported.

BTC launched 4G LTE in the Bahamas in February with technology deployed by Huawei.

According to the International Telecommunication Union (ITU), in 2013, the Bahamas had a mobile penetration rate of 76% and fixed broadband penetration rate of 4.11%.