State-owned incumbent Hondutel is considering partnering with US and Honduran companies, according to local media reports.
Local newspaper La Prensa reported yesterday that the Honduras finance minister, William Chong Wong, said that Hondutel (Empresa…
State-owned incumbent Hondutel is considering partnering with US and Honduran companies, according to local media reports.
Local newspaper La Prensa reported yesterday that the Honduras finance minister, William Chong Wong, said that Hondutel (Empresa Hondurena de Telecomunicaciones) only had a future with external funding.
The report said that Hondutel was in talks with two US companies to form alliances to provide services. These were international VoIP provider Laticom International and the Maxcess Foundation, a not-for-profit foundation that sponsors development programmes.
Hondutel is also reportedly in talks with other Honduran companies: telcos Iptel and Teledinsa, as well as Asi Consultant, which provides advice to companies on IT infrastructure.
Laticom has reportedly come to an agreement with Hondutel to invest a US$50.5m in the state-owned telco in order to develop Honduras’ fibre-optic network. The deal is expected to go through on January 11.
Wong also reportedly said that there is a split in the government regarding Hondutel’s future strategy. Some officials apparently support the idea of selling off 51% of the company to an outside investor, which would be a similar move to the Bahamas selling 51% of its state-owned telco, BTC, to Cable & Wireless Communications.
However, other government officials reportedly want to keep the company under state control.
Hondutel’s workers seem to be firmly against privatisation. La Prensa reported in late December that the president of the company’s union, Orlando Mejia Tercero, said that the workers would be against privatisation.
Hondutel has been seeking investment for over a year, but has been hampered by reports of corruption and mismanagement over previous years.
In November 2010, it asked the Honduras Congress for an increase of US$5.8m in its budget, which would then reach US$68.8m.
Hondutel currently relies on its fixed-line and long-distance voice services, although it is awaiting a new law to be passed that would allow it to operate in the pay TV, wireless, broadband and mobile markets.
It competes with Luxembourg-based Millicom, Mexican telco America Movil and Digicel, which is owned by Irish investors but is based in the Caribbean.
Hondutel was unavailable for comment.
