Venezuela’s local telecoms chamber Casetel predicts that total telecoms investments in the country will reach USD640 million in 2005, up 4% on the USD616 million spent last year. The telecoms industry grew by 10.2% in 2004, mainly due to surging demand for mobile services. Despite the predictions for increased investment, Castel says it expects spending to drop in the next couple of years, to just USD550 million in 2007 before recovering to USD585 million the year after. Casetel also expects the country to be home to 13.5 million mobile lines in 2008, pushing penetration to 49%. Fixed lines in service are expected to number 3.6 million at the same date, a teledensity of 13.1%, compared to 11% today.