August 14, 2006
Conatel to invest US$100mn to expand internet penetration - Venezuela

(BNamericas.com) - "Venezuela's telecoms regulator Conatel plans to invest US$100mn to expand internet and fixed line penetration in an effort to add 500,000 new internet users in the next three years, local press quoted Conatel head Alvin Lezama as saying.

Conatel's goal is to increase its internet client base to four million users in three years with 775,000 new fixed lines installed.

The announced investment is part of the US$160mn budget available at the Universal Service Fund, which administrates a contribution of 1% of revenues from all local operators.

The project to expand internet includes the deployment of 200 nodes in southern and eastern provinces which, according to the regulator, are the ones with the lowest coverage in the country.

As part of the investment plan, Conatel will launch a tender to select the company in charge of interconnecting small cooperatives that will be created to act as local ISPs.

Venezuela's largest operator Cantv is not able to participate in this tender given its incumbent position in the fixed telephony and internet segments".