Philipsburg:--- The Council of Ministers will soon be taking a decision on how they intend to move forward with TELEM Group of Companies. According to reliable information reaching SMN News, the Council of Ministers will soon decide if they will accept the proposal offered by United Telecommunication Services (UTS) which is to become a major partner and own 51% of the shares of TELEM. Should the Council of Ministers accept UTS's proposal St. Maarten would become a minority shareholder in the company.
Digicel, on the other hand, has offered to purchase the company. Some years ago TELEM was looking into the possibility of selling the company, when the information became public at least twelve companies showed interest. SMN News further learnt that the Council of Ministers has already eliminated LIME, Cable and Wireless, and some other American Companies whose proposal was to purchase TELEM Group of Companies.
It is speculated by members of the public that TELEM was sold to Digicel because recently TELEM has been using the same color as Digicel in its promotional materials. They said that TELEM even painted the building in red to show that they are in favor of DIGICEL. However, SMN News managed to confirm that the company has not been sold and that the Council of Ministers will soon decide the way forward for TELEM, while the company is busy restructuring.
St. Martin News Network
Sunday
May 26th
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Council Ministers to Take Decision on TELEM --- UTS or Digicel.
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Last Updated ( Tuesday, 19 June 2012 00:57 )
Comments (8)
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18-06-2012 19:06 |Unregistered| shares
The government should seriously consider the option of offering TELEM in ownership to the people of this island. After all, that is how the business started: owned by the central government and all the islands. The people's tax money and patronage has kept the company afloat for many years. Instead of selling to third parties, let the people opt to buy the shares of the company. In that way the control of the company will remain local. Owned By Us and For Us!
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18-06-2012 23:27 |Unregistered| watcher
I agree with both of you. Selling country owned a**ets to foreign entities is always a tough decision
Sell to UTS should not be entertained...its a political bombshell
(a) it means putting things back into the hands of a government you fought to get away from.
(b) it means making UTS a monopoly essentially. So it would be a step backwards
Selling to Digicel...well, I suppose that can be framed up very strategically but still. If a country has to sell off its national communications infrastructure...that is a BAD SIGN in my book.
There should be a full blown audit done - by groups like ANALYSYS MASON. To provide a clear picture of the root cause of Telem Group of Companies' problems, and how best to solve these.
IF there is any a**et that the government should look at selling off to private sector, it should be GEBE because only good can come from that.
The question here is - are they talking about the GROUP OF COMPANIES or just TELEM the PSTN/Fixed line Operator?
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18-06-2012 23:30 |Unregistered| watcher
and.... IF they do sell it - how will that sale be structured? i.e. if there is real money involved....where is it going, what will it end up being used for?
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19-06-2012 01:20 |Unregistered| what a thing
1. what is the purpose of the sale.
2. who's benifitting from this sale...
1. if the purpose of the sale is solely for a cash injection, then why not sale shares to all locals who's interested...and let the local people of sxm own it at 51%
2. is digicel/uts the benifactor or some corrupted politician/director...
please let us know...
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19-06-2012 05:00 |Unregistered| EK
Tough one indeed. Selling to UTS when we are clearly not keeping one head taking the Central Bank situation will be problematic. Selling out completely to an outsider is also bad business. Partnering however with an outsider is the less of two evils. Sell max 60% of the shares to Digicel with an optional buy back clause after 10 years and to sweeten the deal so they go for it exempt profit tax for max 7 years. Then take the 60% monies that will be recieved and put it into a fund to pump money into renewable energy and small business entrepreneual endeavours that specifcally support more money remaining here than flowing outside the island. Once this strategy is successful, this will more than offset the 60% holdings of Digicel.
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19-06-2012 07:08 |Unregistered| sxmner
SXM Landsradio always made more money than CUR, (sxm LR paid their salaries) so pls dont sell out to UTS, EK is right untill now the situashon with the Central Bank cannot get solved and remember people, CUR politicians and many CUR people hates St. Maarteners, dear politicians pls negotiate on behalf of the people of SXM and not a chosen few to benefit from it. Its time SXM comes first, like Cur said we are corrupt etc so why the interest in our company, do they see something that our ministers are not seeing. Wake up MINISTERS.
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19-06-2012 08:16 |Unregistered| Hpluv
I see no reason to sell to anyone.
I believe the group can be restructured.
I must be done with new people. That can be some of the old staff, with new contracts.
Let the dead-beats go. Pay them off and let them go, fore the better of the group.
Put structure in place and the 'new' workers will have to work according to that structure.
The goup can make money, if it operated as a non-government owned business.
I believe that 2 years of non-political and non-union involvement would put the group in a very strong position.
Blessings!!
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A grave error by government would be to sell to UTS. keep Curacao out !!!!!