Cable & Wireless says unlikely to proceed with plans to buy Bermuda’s KeyTech

Accoring to Forbes this morning in the UK, Cable and Wireless is unlikely to proceed with its plans to buy KeyTech Ltd, due to impending new regulatory framework and the uncertainty that brings.A new plan in the works is Cable & Wireless Bermuda will invest $22m in a fibre optic cable over the next two years. Currently, only Brazil Telecom have a fibre optic cable that both C&W and Telebermuda International use.
The 800 mile-long cable is due to be operational by the end of October and will link Bermuda with the US, it added.

Cable & Wireless had said last July it made a formal proposal to buy KeyTech Ltd for 113 mln stg.

KeyTech’s main business segments are Bermuda Telecom Co Ltd, M3 Wireless Ltd, Logic Communications Ltd and Bermuda Yellow Pages Ltd.

The new regulatory framework proposes the promotion of telecommunications infrastructure development to advance the industry’s growth and sustainability in Bermuda, and to encourage the adoption of new products and services that set the overseas UK territory apart from competing jurisdictions. However, we have noted elsewhere, that this may not be the best course of action at this time.

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