Published On: Wed, Dec 10th, 2014

Davelaar: UTS’ existence in danger

Humphrey DavelaarWILLEMSTAD – According to the leader of the coalition party PNP, Humphrey Davelaar, since the beginning of this coalition, his party has promised a thorough investigation into the business dealings of the United Telecommunication Services (UTS), which is a public company.

Davelaar indicated during the public meeting of parliament that the promised report on UTS is finished and that every MP should get a copy. This is to avoid any speculations. “Sometimes we do bad stuff or say denigrating things to and about our own people. This is because of speculations,” Davelaar said during the parliamentary meeting.

According to Davelaar it is better for the government to follow regional tendencies in telecommunication if they want to talk about UTS. “It’s good to mention that a few weeks ago, Cable Wireless Communications (CWC) announced that it has reached a deal to buy Columbus Network, which in turn owns Flow. CWC is a company based in England and offers the same services as UTS, which are fixed lines, mobile connectivity, internet and international cable network. With this deal, the CWC will make itself strong in the area of telecommunication in the Caribbean. Telecommunication will then be dominated by two major companies, which are CWC and Digicel,” Davelaar argued.

According to the PNP leader and MP, Digicel is very strong in the area of mobile network. “Even though Digicel is stronger than CWC, the CWC is strategically stronger because they dominate both fixed line and mobile network in their areas. To make themselves strong, Digicel will try to acquire various fixed line networks in the Caribbean.”

“We can actually expect strong competition between these two companies in the near future."

Davelaar continued saying that here in Curaçao both companies are established meaning Digicel and Flow. Flow has a license to offer services on fixed lines, internet and also mobile network. And to position itself more strategically, Digicel will try to acquire a fixed line network license. This is to offer its clients a complete telecommunication package.

“If you look at UTS’ position, it becomes very weak. Its value will decrease if these two companies are able to offer a full telecommunication package to the people in Curaçao. This means that UTS will see a loss in its earnings. This could put the public company’s existence in danger.”

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