ATN suggests KeyTech network upgrade coming
Work to upgrade a cabling network that carries internet services to many homes and businesses in Bermuda could soon be on the cards for customers of Logic.
And the envisaged upgrade will include more fibre optic cabling.
Atlantic Tele-Network, a US telecommunications company, is in the process of acquiring a 51 per cent stake in KeyTech, the parent of Logic.
During a conference call with investors yesterday, Michael Prior, ATN's chief executive officer, made mention of possible future actions in Bermuda.
“In Bermuda there is work to be done with the upgrading of the wireline network with more fibre,” he said.
In a statement, the company said the KeyTech transaction is expected to contribute incremental annual revenues for ATN of between $80 million and $90 million for the first year of operations.
On Wednesday, ATN announced its fourth-quarter and full-year results. During 2015 the Massachusetts-based company achieved revenue of $355.4 million, up about $19 million on the year before.
Profit for the fourth quarter was $4.2 million, bringing the full-year net income attributable to shareholders to $16.9 million.
The ATN-KeyTech deal is currently awaiting regulatory approval. A decision is expected during the first quarter of this year.
As well as being the parent company of Logic, into which Bermuda CableVision was merged last year, KeyTech is a minority shareholder of CellOne.
ATN is a trading company that invests in the communications and renewable-energy industries. It is listed on the Nasdaq stock exchange and has a market capitalisation of $1.2 billion.
The company's association with Bermuda dates back to 1998 when it was a primary investor in CellOne.
Among ATN's subsidiaries is Commnet, which provides telecommunications to much of the central and western US states. ATN also has telecoms subsidiaries in the US Virgin Islands, Aruba, and Guyana.