C&W coughs up to buy local ISP

Cable & Wireless Seychelles (C&W) has confirmed it has bought ATLAS, the country’s largest ISP, for a sum of Rs19m.

Seychelles is the last amongst 33 countries in which C&W has also acquired an ISP license beside its traditional telecom trade.

C&W CEO Usman Saadat says the convergence of telecommunications technology is the principal factor in its bid to make its mark as a major player in the Internet business market.

He describes the merger as historic:

“The purchase of ATLAS has combined the strength of the two leading players in their respective fields in Seychelles. The merger will allow us to provide a greater range of services to our customer and deliver IP and other high-speed Internet services to a greater range of customer that has been provided to date,” says Saadat.

But in a more business sense the merger is costing C&W less in the long term since ATLAS is a well established ISP which not so long ago has invested heavily in a brand new Internet broadband project dubbed “SkyWay.”

The take over means C&W is not only benefiting in terms of infrastructure but also with specialised skills, which it wouldn't otherwise have by starting from scratch.

“The purchase is helped by the fact that we are buying an existing asset base and a working service with skills staff. That will give tremendous advantage in terms of being able to further enhance those services and products going forward,” says Saadat.

The deal means C&W is now the country’s leading telecom, with a market share of over 95% fixed line, 65% mobile and 60% Internet customers.

The company recently announced a Rs35m upgrade to its mobile network.

With the ATLAS takeover, the company’s deputy CEO Cyril Bonnelame says this is further proof of C&W’s commitment to Seychelles.

“The market is becoming increasingly competitive and we welcome that change. We will continue to transform ourselves to provide and compete in the best possible way. Our aim in fact is to delight our customers,” reassures Bonnelame.

An assurance the company’s clients hope to see translated in further reduction in telecommunications charges.

For the moment the two companies are operating as separate entities, but C&W says there will be changes during the course of the year.