Venezuela's CANTV To Invest $500 Million For Operations In 2006

CARACAS -(Dow Jones)- Venezuela's largest communications firm, Compania Anonima Nacional Telefonos de Venezuela, or CANTV, plans to invest $500 million this year, similar to the amount invested in 2005, the company said in a statement Friday.

Most of the investment will go into the company's cellular business. The firm plans to spend $260 million in the first half to expand cellular operations. CANTV said it will also invest heavily in its broadband services to win new Internet clients.

In 2005 the company said its Movilnet cellular branch expanded its client base by 67% to reach 5.2 million clients. Venezuela's cellular market as a whole grew 48.4% last year.

The company's broadband client base grew 74% during the same period.

-By Peter Millard, Dow Jones Newswires;58212-5641339; peter.millard@dowjones.com

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Posted to the site on 1st April 2006