Trinidad & Tobago telco finalizing US$236mn for organizational shakeup

Trinidad & Tobago state-controlled telco TSTT is finalizing a TT$1.5bn loan (US$236mn) to boost the company's competitiveness through the offer of new mobile and internet services, local press reported.

The Trinidad Express quoted TSTT's acting CEO George Hill as saying the company had launched a competitive tender for the underwriting services of a bond.

"We are borrowing TT$1.5bn...for this bond through ANSA Finance and we are in the final stages of closing this. We expect by August to complete it," Hill said.

Hill said TSTT needed to invest in its infrastructure to develop its wireless, broadband and wireless broadband services, especially for areas of the country where it was not feasible to run cable lines.

The infrastructure overhaul is needed to help TSTT compete with Digicel.

Digicel's main Caribbean rival, Cable & Wireless Communications (CWC), holds a 49% stake in TSTT and has expressed interest in acquiring a controlling stake.

TSTT will also undergo a structural reorganization, including a voluntary separation and voluntary early retirement program. Hill said the goal is to reduce the current workforce of 2,750 by about 25%.

Hill projects that TSTT will report net income in excess of TT$100mn in the financial year ending March 31, 2015 compared to a net loss of TT$506mn for the year ended March 31, 2014.

Hill said TSTT expects to roll out LTE within the next 12 months, and that CWC may be granted its third mobile license.