| Bolivia: Entel to be nationalised |
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| Wednesday, 31 January 2007 | |
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Bolivian president Evo Morales intends to proceed with his nationalisation program, which includes nationalising telecommunications operator Entel.
Morales said that his government was searching for the best way to nationalise Entel, which is majority-owned by Telecom Italia (TI). TI purchased its stake in Entel when the company was capitalised in 1996. “There is a profound debate going on among the state’s lawyers about how to take back control of Entel, which used to be a state company,” Morales said. Entel, which invested about US$ 700 million in Bolivia over the last ten years, has around 80% of the long-distance market and nearly 70% of the mobile market. The company had revenues of US$ 230 million and profits of US$ 40 million in its last fiscal year. Telecom Italia is reportedly willing to sell its 50.9% stake in Entel for US$ 170 million. Source: Financial Times - WDR/Intelecon Regulatory News |