Digicel wraps up deal on Digicel Holdings

Digicel Group said Wednesday it has completed acquisition of El Salvador mobile operator Digicel Holdings Limited (DHL), marking its entry into the Central American mobile telecommunications market.

"El Salvador is a very exciting marketplace for Digicel and we are looking forward to growing our operation to leverage its young population, stable currency and low current mobile penetration," said Colm Delves, Digicel Group CEO in a company statement.

The El Salvador operation will be led by Luis La Rocca, a mobile telecommunications expert with more than 30 years in the telecoms business.

Rocca has worked with providers such as BellSouth, Telecarrier and BTS, said Digicel.

Previous DHL chief executive, William Nazareth, remains as a consultant to Digicel Group in El Salvador, said the company. It will also be employing 160 DHL workers.

Mobile penetration in El Salvador, which liberalised its telecoms sector in 1998, is currently estimated at about 30 per cent of the seven million population, with mobile phones overtaking fixed line service in 2002.

"There is a lot of growth left," said Delves, explaining Digicel's interest in the market there.

stepping stone

The DHL acquisition also included a licence for Guatemala, and was a stepping stone to further expansion into Costa Rica and Panama when they liberalise in the near future, according to Digicel, as well as possibly other Central American countries like Nicaragua and Honduras.

Digicel already has a foothold in Latin America through French Guiana and Suriname, and is now in the Pacific region.

Its last acquisition in that market was a 90 per cent controlling stake in Telecom Samoa Cellular Limited. The Government of Samoa retains a 10 per cent stake.

business@gleanerjm.com

... Puts Luis La Rocca in charge of El Salvador operation

Colm Delves, CEO of Digicel Group.