CellularOne and M3 Wireless yesterday said they had agreed to merge their wireless businesses.The amalgamation of two of Bermuda’s three cell phone service providers will create a company with approximately a half share of the market, according to the firms.The new entity will operate under the CellularOne name and will be run by the existing CellularOne executive team, headed by chief executive officer Kurt Eve and chief operating officer Frank Amaral.Existing customers of the two companies will keep their phone numbers and the terms of their existing plans.In a joint statement, the companies said there would be “no significant job cuts as part of the merger”. At a press conference yesterday, Mr Eve and Sheila Lines, chief executive officer of M3 Wireless and its parent company KeyTech Ltd did not elaborate further on exactly how many jobs might go.“We are communicating with every employee, a process which started today, and other stakeholders to ensure a smooth transition,” Ms Lines said.“We have a combined workforce of around 70 and the vast majority will keep their current job or be offered a comparable position.”Last week, The Royal Gazette reported on speculation that the two companies were to join forces.The new CellularOne will be approximately 55 percent owned by Bermudian shareholders.KeyTech Ltd, the parent company of M3 Wireless, and Atlantic Tele-Network (ATN), the US-based parent company of CellularOne, will together own roughly equal stakes adding up to about 80 percent of the new company.Bermuda Digital Communications Ltd, the company which founded CellularOne in Bermuda, is approximately 42 percent-owned by Atlantic Tele-Network.The merger has received all necessary regulatory approvals from Government.“We are creating a stronger and more capable single wireless company out of two very complementary businesses,” Mr Eve said.“This merger will be very good for wireless consumers in Bermuda. We are going to use our combined strengths in the marketplace to deliver new products, greater coverage, better service and more options for our customers.”For KeyTech, the change means it will no longer actively manage a wireless business, but it does not represent an exit from the wireless business. KeyTech views the merger as a way to enhance its competitive position in the wireless marketplace.Ms Lines said: “In looking at each other and the marketplace, we recognised that we could be in a more competitive position and deliver greater value for our customers as a combined business.“Together, we will be on an even footing with the competition and we intend to leverage our respective competitive strengths to deliver more for consumers.”The cell phone service market will now be a two-way battle between CellularOne and Digicel, a privately held international company owned by Irish entrepreneur Dennis O’Brien and a dominant player in much of the Caribbean region.Asked for his perspective on the merger, Digicel Bermuda CEO Wayne Caines said: “Our commitment to customers is three-fold: best value, best service and best network. As always, we will continue to do all we can to ensure that our customers are the focus and benefactors of our efforts, which is the reason that more than 50 percent of residents, including most corporate customers, choose Digicel as their preferred cellular service provider.“We work hard for our customers and are always innovating with their needs in mind.”The estimate of around half of market share for the combined company does not correspond with earlier estimates of the two companies that would have added up to around two thirds.Ms Lines said that the combination of the two companies’ data had allowed a more accurate estimation of market share. M3 and CellularOne had roughly equal customer bases, she said. She added that the merger talks had been going on “for a few months”.Last September, M3’s former CEO was moved within the KeyTech Group to take over as CEO of Bermuda Telephone Company. Ms Lines took over as M3 CEO “for an interim period”, KeyTech said at the time.Mr Eve said the merger would allow CellularOne to achieve more efficient use of capital, ensure funding for new technologies and to enjoy better Island-wide coverage.The branding change will take place over the next two months, he added. Integration of the two companies’ networks would be technically challenging, but something that the combined company hoped to get done within a year, Mr Eve added.ATN is a US-based company which trades on the Nasdaq Stock Exchange. In 2010, it recorded revenue of $619 million and net income of $38.4 million.Paul Bowersock, ATN’s president of International Operations said: “This merger will increase our competitive position in Bermuda, and lead to lower market risk for ATN. At the same time, it will allow for more efficient use of capital and ensure funding for investment in new technologies and other products and services in a market we already know.“The new CellularOne will be focused on investing in the best service and products for our customers in Bermuda.”