Hondutel CEO Confirms US$21.2mn Budget for 2006

Honduras' state telecom company Hondutel plans to invest 400mn lempiras (US$21.2mn) in its network in 2006, the company's new CEO Jacobo Regalado confirmed to local daily La Prensa.

Hondutel's former CEO Alonso Valenzuela had been quoted by local press as saying the budget would be 400mn lempiras.

The company's technical division originally recommended a budget of 900mn lempiras, Regalado added, without saying why the figure was cut to 400mn lempiras.

The investments are expected to be made in acquiring technology to start up a mobile service as well as to boost capacity for broadband and other services.

Valenzuela has speculated that the company needs 600mn lempiras alone just to start using the mobile license in the 1900MHz band (band B) and set up the country's third mobile operator.

Hondutel is currently seeking ways of fending off competition since it lost its monopoly on long distance telephony on December 25 last year, which provided annual revenues of some US$70mn, or 60% of the company's income.

In January, Hondutel slashed rates to Mexico, the US and Canada by 46.5% to US$0.38 a minute from US$0.71, following on the heels of long distance rates cuts made by mobile operators Tigo and Aló in late December and early January.

BNamericas.com"

Posted to the site on 2nd February 2006