Cabinet Rejects BTL-SMART Deal; Social Partners Say ‘Work Not Yet Finished’

Cabinet has rejected BTL’s proposed acquisition of SMART/Speednet, but the Social Partners say the decision does not end the regulatory, financial and accountability questions surrounding the controversial transaction.

In a late announcement Thursday, August 13, Cabinet said that after reviewing available information and considering views expressed by stakeholders and the public, it had reached an informed position that it “does not support the proposed acquisition.”

The decision represents the most significant development since the Board of Belize Telemedia Limited (BTL) voted 8-2 earlier this month in favour of pursuing the acquisition of Speednet Communications Limited, operator of the SMART telecommunications brand.

Within hours of Cabinet’s announcement, the Belize Chamber of Commerce and Industry (BCCI), National Trade Union Congress of Belize (NTUCB), National Evangelical Association of Belize (NEAB), Belize Network of Non-Governmental Organizations (BNN) and their respective Independent Senators issued a joint response welcoming Cabinet’s decision.

The Social Partners commended Cabinet for responding to concerns raised across the country, saying the development demonstrated the importance of public scrutiny, collective action and meaningful engagement on matters of national importance.

They cautioned, however, that Cabinet’s position does not itself determine the legal and regulatory fate of the proposed acquisition.

The Social Partners pointed specifically to the Public Utilities Commission (PUC), maintaining that the regulator retains its legally required authority and responsibilities over the transaction. They called for any remaining processes to proceed transparently and independently and in accordance with the applicable statutory framework.

Their outstanding concerns include the proposed acquisition’s implications for competition and compliance with Belize’s telecommunications framework.

The Social Partners also called on BTL’s Board to respond fully to their outstanding requests for information, including financial information and valuation material they say is necessary to properly scrutinize both the transaction and the process undertaken to date.

They further maintained that Cabinet’s decision does not eliminate questions surrounding how a transaction of this magnitude reached what they described as an advanced stage.

Their position remains that a transaction of this significance must withstand public, financial and regulatory scrutiny and comply fully with the law.

For the Social Partners, therefore, Cabinet’s announcement represents a significant development but not the conclusion of the controversy, declaring that “The work is not yet finished.”

Cabinet, for its part, framed its decision around its responsibilities arising from BTL’s ownership structure.

Government said the Government of Belize, the Social Security Board and the Belizean people are the majority owners of BTL and that Cabinet consequently had a responsibility to review available data and relevant information while considering concerns expressed by its members, Social Partners, the media and the public.

Cabinet thanked those who participated in what it described as good-faith and constructive dialogue and said it remained committed to listening to Belizeans and acting in the national interest.

The decision places Cabinet at odds with the position taken by BTL’s Board on August 4.

BTL Chairman Markhelm Lizarraga and Chief Executive Officer Ivan Tesecum had publicly defended the proposed acquisition on commercial grounds, including BTL’s significant excess network capacity and the potential efficiencies and additional revenues that could result from adding SMART’s customer base to existing BTL infrastructure.

BTL had maintained that its infrastructure has capacity for approximately one million users while serving roughly 225,000 customers, with SMART adding approximately another 100,000 customers. The company has argued that consolidation could increase utilization while reducing duplication across towers, fibre, power systems and other infrastructure.

Those arguments, however, have competed with mounting concerns surrounding competition, governance, transparency, valuation and regulatory oversight.

Opposition had also intensified within organized labour.

The Belize Communications Workers Union, which represents BTL employees, announced earlier this week that 84 percent of participating members no longer supported the acquisition as currently proposed. The BNTU subsequently advised that teachers would join an NTUCB demonstration and rally scheduled for August 18.

Cabinet’s rejection now fundamentally changes the circumstances under which that planned demonstration was organized.

What remains unresolved is the formal disposition of the transaction itself.

Cabinet has stated its political and policy position. BTL’s Board has already voted in favour of the acquisition. The Social Partners, meanwhile, maintain that the applicable legal and regulatory processes—and questions about how the proposed transaction reached this point—remain outstanding.