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Colombia: Telecom privatisation demand abandoned Print E-mail
Friday, 10 December 2004
The U.S. government has withdrawn its demand that Colombia privatise its state-run telecommunications operators before a free trade agreement (FTA) between both countries is finalised.

The U.S. previously said that Colombia should sell the state's shares in telecom operators EPM and ETB, saying that the government could not act as market regulator while owning telecom operators as this represented a conflict that could affect market development.

Colombia's government replied by saying that sector regulator CRT is an independent body that is not subject to direct intervention from the central government. The U.S. delegation withdrew the request after Colombia’s negotiators explained the exact role of the CRT.

The U.S. government has also asked Ecuador's administration to privatise local telcos Pacifictel and Andinatel as a precondition for a FTA. Both fixed line companies operate according to laws designed for private companies but their only shareholder is the state through Ecuadorian state holding company Fondo de Solidaridad (FS).

Intelecon Research & Consultancy Ltd. 10/12/2004
Source: Business News Americas