DIGICEL is stepping up its turnaround under new chief executive Marcelo Cataldo, who is betting that tighter finances, fibre expansion and renewed mobile growth will restore momentum at the heavily indebted telecoms group.

Cataldo, a Paraguayan national and former Millicom executive, took the helm in early 2024. His appointment marked a renewed effort to stabilise the business, founded in 2001 by Irish entrepreneur Denis O’Brien, which expanded from Jamaica into 25 markets across the Caribbean, Central America and the Pacific. Digicel’s rapid growth left it with a debt load that peaked at about $7 billion.

After O’Brien ceded control to bondholders in a 2022 debt-for-equity swap that cut $1.7 billion from its balance sheet, the company has since refinanced its remaining obligations. Digicel’s total debt now stands at approximately $2.7 billion, according to the company.

In an interview with trade publication
Developing Telecoms, Cataldo said the operator’s focus has shifted from balance sheet repair to expansion. He identified several key growth areas, including upgrading customers from feature phones to smartphones and expanding its fibre-optic network.

“In this region, we still have voice-only users with feature phones,” Cataldo told
Developing Telecoms. “This presents an opportunity to drive revenue and ARPU — we have a blessed opportunity to move people into the digital world.”

ARPU, or average revenue per user, is a key telecom metric measuring the average income generated from each customer.

Digicel serves 10 million customers across 25 markets. While its 4G network coverage averages 95 per cent, only 70 per cent of its mobile users are on 4G, which Cataldo sees as a significant opportunity to increase average revenue per user.

The company faces challenges common in emerging markets, including a customer base that is roughly 90 per cent prepaid. Cataldo acknowledged that the cost of smartphones, typically between $150 and $200, is a “sizeable amount of money” for many households, though he said demand for digital services is expected to drive uptake.

He also noted that population growth in its core Caribbean markets is stagnant due to outward migration.

However, Cataldo pointed to the market structure as a relative strength. In most of its Caribbean markets, the telecoms sector is a duopoly shared with Liberty Latin America, unlike more crowded markets in Latin America and Eastern Europe.

Cataldo said cooperation with regulators has improved, with governments seeking to accelerate digital adoption. “We show our capabilities and possibilities to help them achieve it, because they want to digitise their countries as much as any other,” he said.

Looking ahead, Cataldo outlined key priorities, including strengthening network resilience. The company recently signed a deal with Caban Energy to provide clean power for its operations in markets like Jamaica.

Fibre deployment, paused during the height of its debt crisis, is being ramped up in Guyana and Curaçao, lifting the current reach of about 900,000 households.

Enterprise services are another growth focus. Cataldo said Digicel is one of few regional operators offering ICT solutions such as cloud computing, data centres and unified communications. “We engage with the companies at a very early stage to help them understand what they need, then sell the service,” he said.

Cataldo said the refinancing has given the company breathing space to focus on steady mobile growth, rapid fibre expansion and stronger enterprise gains.

“It is still early days, but we are meeting EBITDA and cash targets and delivering on commitments to stakeholders, while creating new opportunities to connect the Caribbean to the digital world,” Cataldo said.

Marcelo Cataldo, CEO of Digicel .