CVG to launch telco by early 2004

05/29/2003 - Source: <a href=www.latintrade.com>LatinTrade-BNamericas

Venezuela's state heavy industry holding company CVG expects to launch its carrier of carriers business late this year or early next, using fiber optic infrastructure installed along the distribution network of its power generation subsidiary Edelca, an Edelca executive told BNamericas. The government first authorized the CVG to launch the telecoms division in June 2002, but Edelca communications manager Margarita Rosendo said since then the company has been busy finalizing the new division's corporate structure, awaiting legal approval for each detail. The December-January national strike in protest against the Hugo Chavez administration also held back the process, and although the political situation remains unstable the CVG has decided to go ahead with its search for a strategic partner because of demand from carriers, Rosendo said. "If it keeps raining you can still go out if you take an umbrella!" she added. CVG chairman Francisco Rangel announced this week the company would officially present the project to investors in Caracas on June 5, adding that several national and international firms have shown interest in partnering on the project. Edelca has installed 1,500km of fiber along its electricity transmission network, and will look at installing another 1,500km once the strategic partner is on board, Rosendo said. The government aims to offer a 45% stake in the venture, to match its own 45% stake, and CVG employees will hold the remaining 10%.