Marianas Variety

Last updateTue, 10 Dec 2019 12am

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    Monday, December 9, 2019-1:02:46P.M.

     

     

     

     

     

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NTT Docomo to buy MCV

HAGÅTÑA — NTT Docomo of Japan — the parent company of Docomo Pacific Inc. — has agreed to buy Marianas Cable Vision Broadband for an undisclosed sum, in a deal likely to reshape the landscape of Guam’s telecommunications industry.

“The general scope of the acquisition is the purchase of MCV in Guam and the CNMI by NTT Docomo,” according to a company source who requested anonymity. “The purchase price is subject to a non-disclosure agreement between the parties and will not be disclosed.”

The proposed acquisition, which was signed on Wednesday, requires regulatory approvals from the Public Utilities Commission and the Federal Communications Commission.

“Any evaluation of the company’s needs will take place only after we receive regulatory approval,” said the source privy to the negotiations.

Craig Thompson, chief executive officer of MCV Broadband, declined to comment, other than: “We have an agreement in principle,” but it has to meet all the regulatory requirements, which could take several months. He referred all questions to Docomo.

MCV was acquired in 2005 by Seaport Capital, a New York-based investment company, which has ownership stakes in several cable companies including Everest Cable, MetroCast Cablevision, Mid-Missouri Telephone Company and Otelco Holdings.

Before it was acquired by Seaport Capital, MCV was owned by United Micronesia Development Association. It was exclusively a cable TV provider then. MCV has since expanded its products and services to include an all-in-one bundle for internet, cable, landline telephone and cellular phone service.

Docomo Pacific was originally a merger between Guam Cell Communications and HafaTel, before it was acquired by NTT Docomo in 2006. The company, which used to provide Internet, home phone and paging services, now focuses on voice, data and wireless services. In 2011, Docomo reported revenues of $47.35 million.

Industry observers say the proposed merger between Docomo and MCV would provide formidable competition to GTA TeleGuam Holdings, which currently offers more extensive service and product packages. The Variety’s source said the acquisition of MCV would enable Docomo Pacific to “continue providing world-class products, services and customer satisfaction.”