Logic, North Rock to merge
Internet providers Logic Communications and North Rock Communications yesterday announced they have agreed to merge.
The merger announcement comes just days ahead of the planned issuance of long-awaited Integrated Communications Operating Licenses that will pave the way for bundling of internet, phone and TV for consumers.
The amalgamated entity will remain a wholly owned subsidiary of KeyTech Ltd.
KeyTech is already the parent of subsidiaries Bermuda Telephone Company and Cable Co., while Quo Vadis Holdings, CellOne and Bermuda CableVision are KeyTech affiliates.
A KeyTech statement yesterday said the merger of Logic and North Rock will result in “more investment in new products and superior customer service”.
“We are creating a stronger and more capable service provider out of two very complimentary businesses,” said Lloyd Fray, CEO of KeyTech. “This transaction will be beneficial for consumers and corporate clients. We are going to use our combined strengths in the market to deliver new products, better service, enhanced value, and more choice for our customers.”
With the merger, the company will trade under the name of Logic Communications, but will continue to operate initially under both the existing Logic and North Rock brands.
Vicki Coelho, general manager of North Rock Communications, will assume the role of CEO of the amalgamated Logic Communications.
“With the new Integrated Communications Operating Licenses that are being issued by the Regulatory Authority we recognised that we could be in a more competitive position and deliver greater value for our customers as a combined business,” Ms Coelho said.
The companies said there will be no service disruptions to any customers and the combined entity will honour existing agreements, service plans and pricing.
They said they will ensure customers of both companies receive the high level of service they have come to expect. E-mail addresses will remain the same.
A news conference on the merger is planned for Monday morning.
The companies declined to comment at this stage on whether any jobs would be lost as a result of the merger.
Mr Fray continued, “We are confident that, as we grow the service and product offerings, more and more customers will recognise the enhanced value. The combined businesses will allow for more efficient use of capital and funding for investment in new technologies and services.
“Customers will continue to enjoy residential internet, wireless access, local telephone and long distance services. Business customers will continue to have their dedicated internet, MPLS, collocation, mail and web hosting.”
Over the next several weeks Logic and North Rock say they will communicate closely with customers, employees and other stakeholders, to ensure a smooth transition for everyone involved.
According to Regulatory Authority Act section 87 the parties have to notify the new RA of the merger.
“The RA looks forward to receiving such a notification and welcomes any changes to the telecom sector in Bermuda that would benefit the customers and the Island’s competitiveness,” the RA said yesterday.
The RA said it still plans to issue ICOLS next Tuesday.
With the merger of Logic and North Rock, major players under reform are shaping up to be KeyTech, Link Bermuda, and Digicel.
North Rock last month made a request to the RA for spectrum to launch a new mobile cell service in Bermuda.
According to documents filed with the RA, Quantum Communications, owned by LinkBermuda Holdings, is also seeking to launch a new mobile cell service.
Online reaction was both for and against the Logic-North Rock merger, including this from one commenter: “To me it looks like TeleBermuda (International) is the odd man out in this game of musical chairs.”
Another reader wrote: “The reforms are going to create just a few big players as the Bermuda market is not big enough to support any more. Mergers and buyouts are on the cards.
“Let’s hope that the ones that remain will offer us true competition ... I want to hear about what Link Bermuda’s plans are ... If you look at their Canadian Company called EastLink, they offer 40MB internet along with HD cable and telephone for under $100. Even if they charged $200 here that would save the average household approximately $200.”
Another reader wrote: “This is a disaster! I am not happy about this at all.”
And there was also this comment: “I don’t see costs dropping as a result of reform — at best we’ll get better speeds and bundling.”
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