Bermuda Digital Communications has purchased a major stake in a Turks and Caicos telecommunications provider.

BDC, which operates as CellularOne on the Island, yesterday announced the purchase of a strategic lead stake in two-year-old Islandcom Telecommunications, saying it would contribute financial and strategic resources to develop it into a leading telecommunications company.

Islandcom is Turks and Caicos' third wireless communications company — after Cable and Wireless and Digicel. It serves 1,000 customers in the British Overseas Territory, which has a population of 30,000.

BDC refused to disclose what percentage stake it has taken in Islandcom and also would not comment on purchase price, saying this information was confidential.

Chief executive officer Kurt Eve said the company has invested in a solid team as well as a Caribbean opportunity, however.

"We are glad to have this opportunity to invest in Islandcom," he said. "The company has a good network and excellent staff in place and we plan to take this young, energetic business and help build on its success. We look forward to working with Islandcom CEO Chris Taylor, managing director Sandra Garland, director Caesar Campbell and the rest of the Islandcom team."

Mr. Eve told The Royal Gazette the relationship will benefit both companies.

"Islandcom is a young, energetic company in an island-based market, which has many parallels with CellularOne's own history," he said. "Our company's strong financial health and our expertise in Bermuda's competitive market mean we can contribute valuable assets to Islandcom, both financial and strategic. This cross-fertilisation of knowledge will benefit both companies. This development is particularly exciting since it provides financial growth for BDC. We are continually trying to grow, and this opportunity allows us to do so."

He added: "It fits very well both in terms of the relative size of both companies and the close historical ties between Bermuda and Turks and Caicos. CellularOne is always looking for growth opportunities that promise a smart return on our investments.

"In a case like we have with Islandcom, there are real economic and strategic advantages for both companies, and we are committed to this partnership for the long term."

Islandcom will use the capital investment to add cell sites that expand wireless coverage across the Turks and Caicos Islands and introduce agreements that will allow customers to roam when they are travelling outside the country.Mr.Eve said he hoped the relationship would lead to innovations both countries."Islandcom has already developed some very creative wireless solutions for the tourism and hospitality industry in Turks and Caicos, and we can introduce similar concepts in Bermuda," he said.The transaction has been approved by the Turks & Caicos Telecommunications Commission."Islandcom welcomes Bermuda Digital Communications as a significant investor in our company," said Islandcom CEO Chris Taylor. "BDC brings a strong track record as one of the leading wireless telecommunications operators in Bermuda, both in its operational skills and its ability to gain market share in a competitive environment. Their expertise and their reputation for excellent customer service and network quality will be key factors in guiding Islandcom toward further growth." The purchase was also welcomed by the Minister of Housing,Agriculture, Telecommunications and Works inTurks and Caicos, Jeffrey Hall."We are pleased to welcome Bermuda Digital Communications to the Turks & Caicos Islands," he said. "We appreciate their confidence in Islandcom and the Turks & Caicos Islands and look forward to watching the company grow."