Venezuelan state-owned telco CVG Telecom has formed a strategic alliance with national IT agency CNTI to carry out technology research projects, provide one another with technical assistance, and promote education and information exchange between the two. The pair aim to support the state’s goal of developing technological services and network infrastructure to support national and regional projects, and further the country’s digital access programmes, including wireless networks, info-centres, community telecoms access centres and research facilities.
In September 2004 Venezuela’s Communication and Information Minister Andrés Izarra sanctioned a law allowing for the creation of a new state-backed telco, CVG Telecom, to provide residential telephony and internet access services in direct competition to incumbent fixed line operator CANTV. CVG is a 40/60 joint venture between Venezuelan power utility Electricidad del Caroni (Edelca) and Corporación Venezolana de Guyana (CVG). At the beginning of November 2005 it was granted a licence to roll out services in eight states. It is also in negotiation to enter the country’s mobile sector, but more immediately faces a tough task to make headway in a wireline market dominated by CANTV.