A contentious telecommunications acquisition proposal has created a significant rift within Belize’s business leadership, exposing divergent perspectives on national economic strategy. The planned takeover of Speednet by Belize Telemedia Limited (BTL) has prompted contrasting responses from the country’s premier business organizations.
The Belize Business Bureau has thrown its support behind the merger, asserting that market consolidation would generate substantial economic benefits. According to their analysis, the unified entity could achieve profitability projections approaching $50 million within a three-year timeframe through operational efficiencies and enhanced market positioning.
In opposition, the Belize Chamber of Commerce and Industry has raised multiple concerns regarding the transaction’s structure. Their reservations encompass legal compliance issues, potential consumer impacts, valuation methodology of the $80 million purchase price, and possible conflicts of interest involving the Social Security Board’s investments.
Arturo Lizarraga, President of the Belize Business Bureau, provided detailed justification for their supportive stance. He contextualized the current $80 million offer for Speednet’s one-third market share against the historical $650 million investment in BTL that acquired two-thirds market dominance. Lizarraga emphasized that market consolidation would immediately address revenue erosion in services like international roaming, which has declined from $15 million to approximately $5 million annually due to competitive undercutting between the two providers.
The proposal’s financial structure involves no initial cash outlay, featuring a 4.5% interest rate during the due diligence period, with intended repayment through operational profits generated by the acquired entity. Proponents argue this approach serves national interests by ensuring BTL’s sustainability and improving returns for shareholders, including public institutions.