Huawei, Govt Handset Production Project Behind Schedule

Plans for Venezuela's new state-run operator Telecom Venezuela to set up a mobile handset manufacturing venture have been delayed due to differences over whether it should develop its own products or act as an assembly plant, the national IT center CNTI quoted Telecom Venezuela's president Julio Duran as saying.

Duran is pushing for the venture to develop its own products and is ironing out details of how this could be done with Chinese partner Huawei.

The executive nevertheless believes the two firms will be ready to establish the venture as a legal entity before year-end. The plan is for Telecom Venezuela to have a 90% stake in the venture.

Once legally established, the handset manufacturing unit would take 12-14 months to reach maximum production capacity of about 2mn handsets a year. The firm will concentrate on GSM devices, as well as accessories and spare parts.

Telecom Venezuela and Huawei signed their letter of intent to create the venture in August 2006.

2007-13 Telecom & IT Plan

The handset venture is part of a seven-year plan to boost the country's telecoms and IT capability, formally presented to President Hugo Chavez and his central planning committee (CCP) this week.

The plan includes a model for universal access to telecoms, internet and postal services, the launch of terrestrial digital TV and attention to the content carried over these media.

The universal access component includes consolidation and growth of the state's fiber optic network, and for greater control of telecoms infrastructure the state also intends to look at national production of prepaid cards and antennas, as well as locally run base station installation services.

There are even plans to create a centralized, automated administration system for coordination of all ministries and any entities that are dependent on them.

Posted to the site on 28th September 2007