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Nicaragua: Enitel’s Fixed-line Monopoly Ends Print E-mail
Monday, 18 April 2005
Nicaragua ended Enitel’s monopoly in fixed-lines, long-distance calls, Internet, and voice and data traffic on April 15, 2005.

Other companies are now free to provide fixed-telephony services. The change took effect when the exclusive contract of the Government of Nicaragua with Enitel expired. The contract was signed four years ago.

Enitel will start competing with the Nicaraguan unit of Spanish mobile phone operator Telefonica Moviles, Movistar, and Nicaraguan mobile operator Alo ya, which have already reduced their international call rates by 50%, Nicaraguan MP Agustin Jarquin said.

Jarquin believes that the opening of the telecommunications sector should be regulated by Nicaraguan public service regulator Sisep in order to prevent unfair competition among the various operators in the country.

Enitel was wholly-owned by the state until October 2001, when the government decided to sell a 40% stake in the company to a consortium formed by Swedish telecoms group Telia Swedtel AB and Honduran electricity utility Emce. The consortium was later named Megatel. The remaining stake was sold to Mexican telecommunications company America Movil in December 2003. America Movil also obtained a licence to operate the cellular company Alo PCS. In 2004 America Movil bought the stake of Megatel, becoming the sole owner of Enitel.

Source: Latin America News Digest