PHILIPSBURG:--- The TELEM Group of Companies, St. Maarten's primary telecommunications provider, is seeking a financial injection of NAF 5 million from the government to stabilize its operations amidst a series of challenges that have plagued the company in recent years.
Some months ago, Prime Minister Dr. Luc Mercelina confirmed that discussions are ongoing regarding TELEM's request for financial support. The company, which has faced declining revenues since 2017, has undergone two rounds of downsizing, resulting in many workers being laid off. Despite these measures, TELEM continues to struggle in a rapidly evolving technological landscape.
Competing in a Changing Market
TELEM's challenges are compounded by competition from global players like Starlink, which offers high-quality, stable internet services. The company also faces criticism for its outdated equipment and infrastructure, which hinder its ability to provide competitive services.
In late 2024, TELEM made a controversial decision to switch its mobile network to the Chinese company Huawei, a move that raised concerns about its impact on St. Maarten's tourism economy.
Government's Role and Concerns
The government, as a shareholder, is under pressure to act. Member of Parliament Ludmilla de Weever has been vocal about the need for immediate intervention, leading to a promise of a guaranteed letter for NAF 2 million to TELEM's CFO and Interim CFO, Randell Hato.
However, the financial injection comes at a time when St. Maarten is grappling with its own budgetary constraints.
Future Uncertain
While the government deliberates NAF 5 million request, questions remain about TELEM's long-term viability. Critics argue that mismanagement and poor strategic decisions have contributed to the company's decline, and some question whether additional funding will address the root causes of its struggles.
As discussions continue, the fate of TELEM hangs in the balance, with it’s future likely to have significant implications for St. Maarten's economy and workforce.
