Three lose jobs as cellphone firms merge

Several other staff members have to take new positions but 70 people will still have jobs within the new structure.

The merger will create a majority-owned local company to compete against foreign-owned Digicel.

The move has been under discussion for several months and the new business will operate under the CellularOne brand.

Kurt Eve will remain as CEO of the new CellularOne, with Frank Amaral as the chief operating officer.

Mr Eve said: “We are creating a stronger and more capable single wireless company out of two very complementary businesses.

Coverage

“This merger will be very good for wireless consumers in Bermuda.

“We are going to use our combined strengths in the marketplace to deliver new products, greater coverage, better service and more options for our customers.”

The merger will give both CellularOne and Digicel a 50 per cent share of the market.

Last year all three companies claimed to have a 33 per cent share, meaning the merged firms should have a 66 per cent share.

Mr Eve said: “All three of the cellular companies have over-exaggerated their market share to a certain extent.

“It becomes slightly easier when you have data from two companies and you know the total population in Bermuda so you can back into an accurate market share number.”

Sheila Lines, CEO of M3 Wireless, blamed the inaccurate market share figures on polls, which have a margin of error.

With regard to combining to have a single front against Digicel, Mr Eve said: “It’s a very competitive market. We’re combining our resources so we can compete more effectively.

“It’s very expensive to keep adding new networks in order to keep up with customer demands and by not having two-by-two networks it makes us a more efficient competitor.

“Digicel is a foreign-owned company and has very deep pockets so we are trying to do the best that we can to compete with them.”

Ms Lines added: “We recognized that we could be in a more competitive position and deliver greater value for our customers as a combined business.”

“We will be on an even footing with the competition and intend to leverage our respective competitive strengths to deliver more for consumers.

“We’ve always competed vigorously against CellularOne and Digicel and, going forward, we look forward to competing against Digicel or anyone else who wishes to enter the cellular market. Recent surveys have identified CellularOne and M3 Wireless as having the best reputation for customer service.

“Now, as the only majority Bermudian-owned wireless company, the new CellularOne will be even more focused on investing in the best service and products for wireless customers in our country.”

Only three of 73 employees will lose their job.

Ms Lines said: “We are very sensitive to employment concerns and have taken steps to ensure that nearly every current employee will be retained in their new job, current job or offered a new position.

“We know significant job losses are often associated with merger, however that will not be the case with M3 and CellularOne.”

Pricing

Mr Eve said there will be no service disruptions and the new CellularOne will honour existing agreements, service plans and pricing from M3 customers.

They will also keep their current phone numbers.