The World Bank expects to publish on October 24 a four-year plan for the Honduran economy, including measures to strengthen state telco Hondutel and state power company ENEE, a World Bank spokesperson in Honduras told BNamericas.
In the case of Hondutel it is inevitable that the plan will include rate adjustments and job losses, local daily El Heraldo reported.
Hondutel is expected to see its annual revenue fall due to the liberalization in December 2005 of long distance telephony, telegraphy, public telephony, fixed line telephony and telex services. The revenue loss for international long distance alone is expected to be 1bn lempiras (US$53mn), the paper said.
The task of drawing up a four-year plan was part of a series of commitments the government took on with the International Monetary Fund (IMF) for an economic program covering 2004-2006. The IMF is scheduled to carry out its fourth progress report on the program this month.
The IMF is known to be pushing for privatization of Hondutel and ENEE but the government has not yet confirmed any such plans.
For its part Hondutel plans to invest in measures to counteract illegal international long distance operators and build the number of installed lines to 600,000 in 2009 compared to 400,000 today.
Hondutel is also expected to become more competitive by launching mobile services if it can finance roll out of a suitable network. However, time is running out given that the telecoms regulator Conatel is expected to auction the country's fourth mobile license this year.
BNAmericas.com"
Posted to the site on 17th August 2006
Posted to: www.cellular-news.com/story/18881.php