Digicel going after business solutions market

The media and communications group, which is poised to start a US$2.3 billion Initial Public Offer in New York within days, has told investors that opportunities in its markets for business solutions could total revenues of up to US3$ billion.

    
Last year, Digicel generated revenues of  us$2.8 billion, with operating profits of US$707 million.  

    
Slowing growth in its core prepaid mobile markets has seen the company transform itself  into a cable TV, broadband, business services and communications business.

The change in consumer habits has seen an explosion of  smartphone usage. The expansion of  data is expected to surpass the fall-off  in voice traffic by the end of  the year.

    
Cable and television are also seen as high potential growth opportunities for the company, as there are very low penetration rates in Digicel's key markets.

                                                   

Digicel, meanwhile, has tapped into immigrant communities in the US and UK to generate US$128 million in annual revenue by allowing customers to top-up relatives' mobile phone accounts back home.

   
Digicel is targeting a population of 10 million emigrants living in countries across the world, who remit about US$9 billion to their home countries every year.              

   
Digicel said, in order to develop its Diaspora product, it established a team in Miami, and also marketing presences in London, New York, Los Angeles, and Canada.  

   
The company pointed out that the US has a large immigrant community of  Jamaicans and Haitians, while there's also a large Jamaican community in the UK.