Hondutel, the state-owned incumbent and the country’s largest fixed-line operator and ISP has asked the Honduran Congress for an increase in its annual budget to HNL3.1bn (US$68.8m), according to the Honduran Congress.
The telco, which competes with…
Hondutel, the state-owned incumbent and the country’s largest fixed-line operator and ISP has asked the Honduran Congress for an increase in its annual budget to HNL3.1bn (US$68.8m), according to the Honduran Congress.
The telco, which competes with Luxembourg’s Millicom, Mexico’s America Movil and regional operator Digicel, asked for an increase of HNL110m (US$5.8m).
CEO Romeo Vasquez asked for the extra money to help roll out free internet in schools and increase the company’s mobile penetration rates.
He said the need for more money was a result of the company being owed more than HNL600m (US$31.7m) in unpaid fees from other companies. He also claimed that ‘grey traffic’ was a major threat to the company, whereby pirates use technology to make international calls local and thereby rob Hondutel of income.
The company is mainly reliant on fixed-line and long distance voice services for revenue, and is awaiting the approval of the “Hondutel strengthening law,” designed to allow Hondutel to compete in the pay-TV, wireless, broadband and mobile markets.
The state-owned company has been dogged by corruption scandals for a number of years.
