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Hamilton, Bermuda (May 3, 2011) – CellularOne and M3 Wireless announced today that they have agreed to merge their wireless businesses. The merger will create a new, majority Bermudian-owned business that will use the CellularOne brand and be operated by the current CellularOne executive team.
At 1:00 pm today company executives will hold a press conference at the Bermuda Underwater Exploration Institute to announce the details of the merger agreement.
“We are creating a stronger and more capable single wireless company out of two very complementary businesses,” said Kurt Eve, CEO of CellularOne. “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.”
“In looking at each other and the marketplace, we recognized that we could be in a more competitive position and deliver greater value for our customers as a combined business,” commented Sheila Lines, CEO of M3 Wireless. “Together, we will be on an even footing with the competition and we intend to leverage our respective competitive strengths to deliver more for consumers.”
With the merger, the new CellularOne will have about half of the Bermuda wireless market, including both post- and pre-paid. As the two companies execute the merger, customers will see the transition to the single CellularOne brand. There will be no service disruptions and the new CellularOne will honor existing agreements, service plans and pricing. There will be no changes to customers’ phone numbers as a result of the merger – every customer will keep their current number. CellularOne will ensure customers of both companies receive the high level of service they have come to expect.
The new CellularOne will be more than 50% owned by Bermudian shareholders, with KeyTech Limited, the parent company of M3 Wireless, and Atlantic Tele-Network, the parent company of CellularOne, together owning about 80% of the new company. For KeyTech, the change means it will no longer actively manage a wireless business, but it does not represent an exit from the wireless business. KeyTech views the merger as a way to enhance its competitive position in the wireless marketplace.
Eve continued, “We are confident that, as we grow our service and products, more and more customers will see the great value of the new CellularOne. This merger will provide for more efficient use of capital and ensure funding for investment in new technologies and other products and services. CellularOne customers will enjoy reliable island-wide coverage and a broader range of wireless plans and devices. Corporate clients will enjoy the extensive roaming services
and a comprehensive sales and support team that will be available under the combined company.”
Lines continued, “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.”
CellularOne and M3 Wireless are very sensitive to employment concerns and announced that there will be no significant job cuts as part of the merger. The companies have taken steps to ensure that nearly every current employee will be retained in their current job or offered a new position. Over the next several weeks CellularOne and M3 Wireless will communicate closely with every employee, with other stakeholders, and with customers to ensure a smooth transition for everyone involved.
Media Contact: Kendaree Burgess
Mangrove Consultants Ltd.
Cell: 505-3204
kburgess@mangrove.bm