Digicel Explained

Digicel
Type:Private
Founder:Denis O'Brien
Area Served:Caribbean
Key People:Denis O'Brien
Industry:Telecommunications
Products:Mobile, Fixed Broadband, Wireless Broadband, Satellite Television, Cable, Mobile Money, Home Security
Revenue:$2.8 billion (2015)[1]
Owner:Denis O'Brien
Num Employees:~6,500 (2018)
Foundation:April 19, 2001
Subsid:Digicel, Trend Media Group, Prism Services Jamaica
Location:Kingston, Jamaica
Homepage:Digicel Group

Digicel is a Jamaican-based Caribbean mobile phone network and home entertainment provider operating in 25 markets worldwide.

Digicel has operated in several countries, including Guyana, Fiji, Haiti, Trinidad and Tobago, Samoa, St. Lucia, Suriname, and Jamaica. In 2024 a group of U.S. private equity firms took over control of the company as part of debt restructuring.[2] [3] [4] [5]

History

Digicel was founded in 2001 by Irish entrepreneur Denis O'Brien. The company launched in April 2001 in Jamaica.[6] In March 2003, Digicel expanded to St. Lucia and St. Vincent.[7] In 2005, Digicel purchased Cingular Wireless’ Caribbean and Bermudan operations.[8]

In April 2006, Digicel launched its services in Trinidad and Tobago.[9] In May 2006, Digicel began operations in Haïti.[10] Between 2006 and 2008, Digicel expanded into the Central American mainland, as well as the Pacific.[11] In September 2006, it acquired an unrelated mobile phone provider: Digicel Holdings in El Salvador.[12]

In 2007, Digicel acquired U*Mobile in Guyana,[13] and launched in Suriname in December.[14]

OUR court rulings

In April 2002, Digicel received permission from Jamaica's then-minister of industry, commerce and technology, Phillip Paulwell, to disregard the interconnectivity fee ceiling issued by the Offices of Utilities Regulation (OUR).[15] Following a judicial review, it was determined that Paulwell did not have the power to make this decision. Digicel appealed the ruling to the Jamaican Supreme Court in 2003 and won. OUR appealed the decision to the appellate court, which ruled Paulwell's decision was outside his powers and OUR didn't have to comply with Paulwell's directive. Digicel appealed to the Privy Council, Jamaica's final court of appeal, which upheld the appellate court's decision in 2007.

Digicel appealed the decision to the United Kingdom Privy Council. In January 2010, the Council ruled in favour of the OUR, meaning LIME (formerly Cable & Wireless Jamaica) was allowed to keep the J$340 million Digicel had been ordered to pay them by the Jamaican courts. In 2015, LIME's parent company acquired Columbus Communications and decided to adopt the brand name FLOW for its consumer-facing business, replacing the LIME name.[16] As of May 2016, the LIME name was fully discontinued.[17]

2010–present

Digicel Mobile Money, a mobile banking service, was launched in Fiji in July 2010.[18] Also in 2010, Digicel launched TchoTcho, a cash app for money transfers to phones in Haiti.[19] In 2011, Mobile Money in Fiji was expanded to allow transfers to and from Australia and New Zealand at no cost.[20]

In February 2011, Digicel took a controlling stake in Netxar Technologies, a leading systems integrator in the Caribbean region.[21] In March, Digicel announced that it was selling its operations in Honduras and El Salvador to Mexican telecom company América Móvil, and América Móvil was selling its operations in Jamaica to Digicel.[22] In March 2012, Digicel acquired Comcel/Voila, its main competitor in Haiti.

In May 2012, the Tax Authority Jamaica (TAJ) visited Digicel's offices in New Kingston with an order from the Jamaican Supreme Court to look for data regarding the company's payment of the general consumption tax.[23] A couple of weeks later, TAJ and Digicel agreed to have more dialogue surrounding the situation.[24]

In October 2012, América Móvil announced it wouldn't acquire Digicel's operations in El Salvador.[25]

In June 2013, Digicel announced that it would invest $9 billion in a mobile phone network in Myanmar, if granted a licence.[26] However, Digicel lost the licence bid to Telenor and Ooredoo.[27] [28]

Digicel acquired SAT Telecom, a cable and internet company in Dominica, in February 2014 and relaunched the brand as Digicel Play in October of that year.[29] [30] [31] In September, Digicel acquired Telstar Cable Limited in Jamaica.[32]

In 2015, TchoTcho was relaunched as MonCash with additional banking services. In September 2016, Digicel Play launched as Play Go, a live streaming service.[33]

In July 2017, Digicel bought 16.6% of Tonga Cable from the government.[34]

In January 2019, O'Brien named Jean-Yves Charlier as chief executive, replacing Michael Willner.[35] Jean-Yves stepped down as the Group CEO of Digicel in July 2020, and Oliver Coughlin was named the CEO for Digicel's Caribbean and Latin American business.[36] [37]

In May 2020, Digicel announced plans to restructure its debt.[38] The restructuring plan was approved by Digicel's bondholders and completed in June 2020.[39] As part of the exchange, O'Brien contributed $50 million in assets to Digicel, consisting of the company's Jamaican headquarters and $25 million in cash.[40]

In November 2020, Digicel announced that, in its financial second quarter to the end of September, its earnings have dropped due to impact of the COVID-19 pandemic.[41]

In October 2021, Digicel announced the sale of its Pacific operations to Telstra Group, an Australian telecommunications company.[42] [43] The sale was estimated at US$1.6 billion. However this was thrown into doubt in March 2022 when the Papua New Guinea government imposed a retrospective tax of over $100m on the company.[44]

In September 2022, credit rating service Fitch issued a warning of a potential debt default.[45] The Irish Times suggested "there's little or no equity value in Digicel to chase".[46]

On September 11, 2023, Digicel Group filed for Chapter 15 bankruptcy in the United States Bankruptcy Court for the Southern District of New York.[47]

On November 29, 2023. Rajeev Suri was appointed as the new Chairman of Digicel Group.[48]

Corporate sponsorship

Digicel is a sponsor of Caribbean, Central American and Asia-Pacific sports teams, including the Special Olympics teams in these regions.[49] [50] [51] From 2005 to 2018, Digicel sponsored The West Indies cricket team.[52]

In 2008, Digicel announced that they would sponsor the Vanuatu national cricket team, as well as the National Rugby 15s and 7s teams.[53] That same year, Digicel became the sponsor of the Digicel Cup for rugby in Fiji.[54]

In April 2013, Digicel was announced as the first global sponsor of the 2013 inaugural tournament for the Caribbean Premier League.[55]

In 2021, Digicel sponsored the PlayGo Emerge Competition for short films made in the Caribbean.[56]

Digicel Foundation

In 2004, Digicel and its shareholders set up the Digicel Foundation in Jamaica.[57]

The Digicel Foundation is active in Jamaica, Haïti, Trinidad and Tobago[58] and Papua New Guinea.[59] In Haïti, the Digicel Foundation helped rebuild after the 2010 Haïtian earthquake struck Port-au-Prince on January 12, 2010.[60] Projects have included building primary schools and restoring the historic Iron Market.[61]

Digicel Group’s mobile operations

The following is a list of Digicel Group's Pacific operations. These operations are headed by an office in Port Moresby, Papua New Guinea, as well as one in Singapore. Digicel's Pacific operations were acquired by Australian telecommunications company Telstra on July 14, 2022.[62]

Digicel Asia Pacific Territories! Country/Territory! GSM Bands! UMTS Bands! LTE Bands ! Local Sites
FijiGSM-9001, 83, 28Digicel Fiji
NauruGSM-90083Digicel Nauru
Papua New GuineaGSM-900, GSM-180083, 28Digicel Papua New Guinea
SamoaGSM-90083Digicel Samoa
TongaGSM-90083Digicel Tonga
VanuatuGSM-900828Digicel Vanuatu

The following is a list of the North Atlantic, Caribbean and Central American operations of Digicel Group. All report to Digicel Group's headquarters in Kingston, Jamaica.

Digicel Caribbean & Central American Territories! Country/Territory! GSM Bands! UMTS Bands! LTE Bands ! NR Bands ! Local Sites
AnguillaGSM-9002, 817Digicel Anguilla
Antigua and BarbudaGSM-9002, 517Digicel Antigua & Barbuda
ArubaGSM-9001, 83, 8Digicel Aruba
BarbadosGSM-900, GSM-18001, 82, 12, 17Digicel Barbados
BermudaGSM-190052, 13Digicel Bermuda
GSM-9001, 53Digicel Bonaire
GSM-190024, 13Digicel British Virgin Islands
Cayman IslandsDecommissioned1, 51, 3, 13n78Digicel Cayman Islands
GSM-9001, 53Digicel Curaçao
DominicaGSM-900. GSM-19001, 82, 8, 12, 17Digicel Dominica
El SalvadorGSM-90082Digicel El Salvador
French GuianaGSM-90013, 7, 20Digicel French Guiana
GrenadaGSM-900, GSM-180022, 8, 12, 17Digicel Grenada
GuadeloupeGSM-900, GSM-18001, 83, 7Digicel French Windies & French Guiana
GuyanaGSM-9002, 53, 28Digicel Guyana
HaitiGSM-900, GSM-18001, 53, 5Digicel Haiti
JamaicaGSM-90052, 4, 5, 12, 17Digicel Jamaica
MartiniqueGSM-900, GSM-18001, 81, 3, 7Digicel Martinique
MontserratGSM-850, GSM-19002, 817Digicel Montserrat
PanamaGSM-190022, 28Digicel Panamá
GSM-90011, 3, 7, 20Digicel Saint Martin & Saint Barths
Saint Kitts and NevisGSM-900, GSM-18002, 82, 17Digicel Saint Kitts & Nevis
Saint LuciaGSM-900, GSM-18002, 82, 8, 12, 17 Digicel St. Lucia
GSM-90011, 3, 7, 20Digicel Saint Martin & Saint Barths
Saint Vincent and the GrenadinesGSM-900, GSM-18002, 82, 12, 17Digicel Saint Vincent & the Grenadines
SurinameGSM-900, GSM-18001, 53Digicel Suriname
Trinidad and TobagoGSM-8502, 52, 4, 28Digicel Trinidad & Tobago
Turks and Caicos IslandsGSM-90024, 12, 17Digicel Turks & Caicos

Competitors

In the Caribbean region, the main competitor is American-owned Liberty Latin America.[63]

See also

External links

Notes and References

  1. Web site: Digicel Group Limited.
  2. Web site: Private equity takeover of Digicel by month's end . 21 January 2024 .
  3. Web site: Digicel may be taken over by its creditors . 2 March 2023 .
  4. Web site: Digicel Bondholders Take Control of Company .
  5. Web site: The Rise and Fall of a Caribbean Communications Kingpin .
  6. News: Cauley. Leslie. Digicel makes cellphone connection in Jamaica. 27 August 2006. USA Today.
  7. News: Taking Midas touch to Caribbean. The Irish Times. en. 2020-02-25.
  8. Web site: Cingular Wireless sells Caribbean, Bermuda operations to Digicel. 1999-11-30. RCR Wireless News. en-US. 2020-02-25.
  9. Web site: Digicel to launch on Thursday . TeleGeography . 13 August 2021.
  10. News: Irish cellphone entrepreneur banks on a smarter Haiti. 2013-01-16. Reuters. 2020-02-25. en.
  11. News: Digicel casts its net across Caribbean. The Irish Times. en. 2020-02-25.
  12. News: Young. Shawn. Cellphone Start-Up's Aggressive Expansion. 2006-09-21. Wall Street Journal. 2020-02-25. en-US. 0099-9660.
  13. Web site: Digicel makes commitment to children with special needs. 2017-02-14. Guyana Chronicle. en-US. 2020-02-25.
  14. https://web.archive.org/web/20070119192333/http://www.caribbeannetnews.com/cgi-script/csArticles/articles/000028/002832.htm "Suriname grants telecom licences to Digicel and Intelsur"
  15. Web site: 22 January 2010. Blow to Digicel. dead. https://web.archive.org/web/20150305151436/http://www.jamaicaobserver.com/news/Privy-Council-hits-Digicel_7347055. 2015-03-05. Jamaica Observer. Jamaica.
  16. Web site: CWC gives LIME the boot, rebrands to Flow. 8 May 2015. Jamaica Observer. live. https://web.archive.org/web/20150509010615/http://www.jamaicaobserver.com:80/business/CWC-gives-LIME-the-boot--rebrands-to-Flow_18900497 . 2015-05-09 . 2020-02-25.
  17. Web site: Caribbean Telecoms Market Statistics and Analyses 2019 - ResearchAndMarkets.com. live. https://web.archive.org/web/20190618131520/https://finance.yahoo.com/news/caribbean-telecoms-market-statistics-analyses-192700588.html . 2019-06-18 . 2020-02-25. Yahoo Finance. en-US.
  18. Web site: 19 July 2010. Mobile phone banking launched in Fiji. 2020-09-03. RNZ. en-nz.
  19. Web site: 2019-10-24. How Mobile Money Is Increasing Financial Stability. 2020-09-03. The Haitian Times. en-US.
  20. Web site: 5 December 2011. Digicel offers free money transfer. 2020-09-03. The Fiji Sun. en-US.
  21. Web site: Digicel acquires Netxar Technologies. 2011-02-11. Stabroek News. en-US. 2020-02-25.
  22. Web site: Harrison. Crayton. 30 November 2011. America Movil Weighing Options for Digicel El Salvador Deal. 2020-02-25. Bloomberg.
  23. News: Hall. Arthur. May 10, 2012. Gov't Defends Digicel Tax Raid. Jamaica Gleaner.
  24. Web site: 14 May 2012. Digicel, Tax Administration call truce. 2020-09-03. The Jamaica Gleaner. en.
  25. News: 11 October 2012. Mexico's America Movil ends deal to buy Digicel. en. Reuters. 2020-09-03.
  26. News: Thomson. Amy. 2013-06-03. Digicel-Soros Consortium Promises $9 Billion Myanmar Investment. en. Bloomberg. 2020-09-03.
  27. Web site: Digicel loses out to Norwegian, Quatari telecoms in Myanmar bid - Business. Jamaica Observer. 16 February 2015.
  28. News: Keena. Colm. O'Brien's Digicel loses out in Burma. 2020-09-03. The Irish Times. en.
  29. Web site: 19 February 2014. Digicel acquires cable TV operation. 2020-09-03. The Jamaica Gleaner. en.
  30. Web site: 2014-02-17. SAT sold to Digicel. 2020-09-03. Dominica News Online. en-US.
  31. Web site: 22 October 2014. Digicel Play launches services in Dominica. 2020-09-03. Telecompaper. en.
  32. Web site: 11 September 2014. Digicel completes acquisition of Telstar Cable Ltd. 2020-09-03. The Jamaica Gleaner. en.
  33. Web site: 5 September 2016. Digicel launches Play Go streaming app. 2020-09-03. Jamaica Observer.
  34. News: O'Halloran. Barry. 28 July 2017. Denis O'Brien's Digicel pays €3.6m for Tonga Cable stake. 2020-09-03. The Irish Times. en.
  35. News: Brennan. Joe. 28 January 2019. O'Brien chooses Charlier as new chief executive of Digicel. 2020-09-03. The Irish Times. en.
  36. Web site: Release . Press . 2020-07-09 . Coughlan is new Digicel CEO for Caribbean, Central America . 2022-06-09 . Tech News TT . en-US.
  37. News: O'Brien . Ciara . 2020-07-09 . Digicel appoints Oliver Coughlan to head up Caribbean, Central America business . 2022-06-09 . The Irish Times . en.
  38. Web site: Digicel reports 'overwhelming support' for debt restructure. 2021-06-07. www.capacitymedia.com. 22 May 2020 . en.
  39. Web site: 2020-06-18. Digicel Group to finalise debt swap after court approval. 2021-06-07. jamaica-gleaner.com. en.
  40. News: Brennan. Joe. O'Brien may pull off $1.7bn Digicel debt write-off – but at what cost?. 2021-06-07. The Irish Times. en.
  41. News: Brennan. Joe. Denis O'Brien's Digicel sees earnings drop 8% in second quarter. 2020-11-25. The Irish Times. en.
  42. News: 2021-10-25. Digicel Pacific: Australia's Telstra buys Pacific firm 'to block China'. en-GB. BBC News. 2021-10-25.
  43. Web site: Galloway. Zoe Samios, Anthony. 2021-10-24. Telstra seals $US1.6b deal to buy Digicel with a helping hand from Canberra. 2021-10-25. The Sydney Morning Herald. en.
  44. News: Denis O'Brien's Digicel says 'bizarre' new tax will delay Telstra deal. .
  45. News: Digicel eyes maturing $925m bond as earnings drop . 2022-09-12 . The Irish Times . en.
  46. News: O'Brien has months to avert ceding almost 47% of Digicel to junk bondholders . 2022-09-12 . The Irish Times . en.
  47. Web site: Digicel Group Files for Chapter 15 Bankruptcy in New York. September 11, 2023. September 11, 2023. Bloomberg. en.
  48. 2023-11-29 . Rajeev Suri to be appointed Chairman of Digicel Group . . en.
  49. Web site: 19 February 2019. Digicel pledges US$20,000 to Dominica Special Olympic team for upcoming World Games. 2020-09-03. Dominica News Online. en-US.
  50. Web site: 13 February 2019. Digicel sends Team Samoa to World Games in Abu Dhabi. 2020-09-03. Samoa Observer.
  51. Web site: 22 February 2019. Digicel supports Special Olympics Team Nauru. 2020-09-03. Loop Nauru. en.
  52. News: Paul. Mark. 30 May 2018. Digicel ends West Indies cricket sponsorship. 2020-09-03. The Irish Times. en.
  53. Web site: 26 June 2008. Digicel Launches with The Bigger Better Network in Vanuatu - Solomon Times Online. 2020-09-03. Solomon Times. en.
  54. Web site: 1 June 2008. Digicel sponsors provincial rugby: $13,000 for major unions. live. https://web.archive.org/web/20140714181829/http://www.fijitimes.com/story.aspx?id=90926. 14 July 2014. The Fiji Times.
  55. Web site: 16 April 2013. Digicel announced as major sponsor for Caribbean Premier League. St. Lucia News Online.
  56. News: 11 October 2021. Curaçaoan filmmaker wins PlayGo Emerge film competition Loop Jamaica. en. Loop News. 2021-12-14.
  57. Web site: Edwards. Al. 30 September 2011. Digicel Foundation deepens its commitment to educating Jamaica. 2020-09-03. Jamaica Observer.
  58. Web site: Digicel Trinidad and Tobago Foundation.
  59. Web site: 14 November 2019. Denis O'Brien's warnings for Ireland - change up tax laws and education. 2020-09-03. Irish Central. en.
  60. News: Strom. Stephanie. 2012-01-06. A Billionaire Lends Haiti a Hand. en-US. The New York Times. 2020-09-03. 0362-4331.
  61. Ed Vulliamy, "How an Irish telecoms tycoon became Haiti's only hope of salvation", The Guardian, January 9, 2011
  62. Web site: Telstra completes $2.4b Digicel deal . Australian Financial Review. 14 July 2022 . 1 May 2024.
  63. Web site: Home Liberty Latin America.

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