Digicel Group Limited has informed the Securities Exchange Council (SEC) that while it may have grand plans to expand its product portfolio to secure more subscribers, it may experience difficulties in its efforts to do so since it would need to attract adequate managerial and operational resources.
Expounding in this regard, the telecommunications company told the US regulator which seeks full financial disclosure from companies to protect American investors that it wants to expand its product portfolio to include a variety of business solutions as well as Cable-TV and content services in its 32 markets. It said that its product expansion plans are guaranteed to increase its subscriber base depends. But the achievement of same would only be possible on the success of simultaneously expanding its networks. It was keen to note to the SEC however that the build-out of more networks is subject to its own risks and uncertainties.
To the extent Digicel fails to expand its network on a timely basis, the company warned that it could experience difficulty in maintaining and/or expanding its current subscriber base as its network or spectrum position may not be able to adequately support its existing or new subscribers effectively.
In addition, Digicel said that its ability to manage its business successfully is dependent upon how fast it is able to shore up sufficient operational resources as well as the introduction of improved infrastructure.
As it relates to keeping its current business operations going, the Commission was informed that this is a “significant” strain on Digicel’s already limited resources. In this regard, Digicel disclosed that it leases most of the sites on which its cellular communications towers are located. It cautioned that any failure or delay in securing the renewal of these leases on favorable terms could have a material adverse effect on the results of its operations.
