Digicel, Denis O'Brien’s Caribbean based telecoms company, has signed a deal with the French company that controls eir that will see the two firms share network in the French West Indies.
The deal was originally flagged by Digicel in it third quarter earnings in February, but the company has only provided details today.
The agreement will see Iliad gain access to Digicel’s Radio Access Network in the French West Indies.
This will enable Iliad, whose majority shareholder is French billionaire Xavier Niel, to launch a mobile service in the territory.
Digicel will also gain by securing revenue from its network assets in five countries across the French West Indies, including Martinique, Guadeloupe, French Guiana, St. Martin and St. Barth.
According to Digicel, the two firms will share future operational investments and together aim to build "one of the most extensive networks in the French West Indies by increasing the number of sites and providing further fibre connectivity for improved coverage and speed."
"As we continue our journey towards becoming a digital operator, we recognise that sharing infrastructure in a multi-operator marketplace provides the foundation to offer better network services to our customers, whilst reducing the cost structure," said Digicel Group CEO, Jean-Yves Charlier.
"A joint venture of this nature is a first for Digicel and allows us to accelerate our digital ambitions. We are delighted to be partnering with a world-class telecom operator in Iliad and to be sharing a common vision of jointly building one of the most extensive networks across the French West Indies."
Digicel is currently in the final stages of restructuring its debt form around $7bn to $5.4bn through a complex process that has involved many of the holders of that debt agreeing to reduce the value of what they are owed.
The final stages of the restructuring are due to be completed by the middle of this month.
