CASTEL president predicts 25% growth

5 May 2005

The president of Venezuela’s Counsel to the Chamber of Telecommunication Services Companies (CASETEL), Adelas Vivas, has told Reuters that increasing demand and a burgeoning economy should spur growth of between 25% and 28% in the country’s telecoms market this year, up from 20% in 2004. Vivas said he specifically expects the arrival of Telefónica Móviles and the proposed merger of second and third largest cellular operators Movilnet and Digitel to boost the sector. Telefónica Móviles acquired BellSouth’s stake in the country’s leading mobile operator Telcel late last year, whilst Movilnet’s parent, PTO CANTV, is currently awaiting approval for its planned purchase of Digitel. Vivas predicts that heightened competition will see the mobile market ending 2005 with around nine million subscribers.