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Hondutel launches 2nd PHS operation, eyes third for Dec

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The company expects to sell 100,000 lines using the new service, named Sulatel, in its first year of operations, similar to the goal of its first PHS operation called Tegucel launched in capital Tegucigalpa in July. Hondutel plans to launch a third operation in port city La Ceiba on Honduras' northern coast in December. The company expects to have national coverage in 2008.

The first two PHS operators are expected to interconnect in December in time for the entrance of a new mobile competitor in the country.

On December 19, telecoms regulator Conatel is scheduled to award a fourth mobile concession license for a company to operate in the 1870-1890MHz and 1950-1970MHz bands.

Spain's Telefonica, Jamaican group Digicel, Mexican mobile operator Iusacell and UK-owned Cable & Wireless (C&W) are the four companies prequalified to bid for the license.

Technically, the spectrum license represents the country's fourth mobile concession, but the third license holder - Hondutel - is not expected to obtain sufficient financing to roll out true mobile operations in the short term. Hondutel's PHS operations are based on fixed wireless technology.

The two established mobile operators in Honduras are market leader Tigo, owned by Luxembourg's Millicom International Cellular, and America Movil unit Claro.

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Tags: america movil  iusacell  millicom international  fixed wireless  millicom  hondutel  conatel  telefonica,  Honduras