Hondutel mulling strategic investor?
Local reports indicate that Honduran government owned telco Empresa Hondurena de Telecomunicaciones (operating as Hondutel), could be on the lookout for a strategic investor.
Hondutel holds a monopoly on all international calls, but has been under…
Local reports indicate that Honduran government owned telco Empresa Hondurena de Telecomunicaciones (operating as Hondutel), could be on the lookout for a strategic investor.
Hondutel holds a monopoly on all international calls, but has been under investigation by the FBI due to corruption claims since 2007. On the local market it competes with Mexican telecoms giant America Movil, Digicel, Tigo, Claro and Millicom, and aside from its international business it also provides mobile telephony services. The fixed line business reportedly generates some 60% of company revenues, hence the mobile sector is still a fairly untapped one for the telco, and one in which it needs to make significant investments.
The telco is currently not only battling large-scale corruption claims, but is also said to be in slow decline financially. Local reports say the Honduran telecoms market is increasingly competitive and the telco could therefore be on the lookout for a strategic investor or partner to help it better cope with the demands of the evolving market.
