Government mulls following Venezuela’s lead; Entel to be nationalised?

26 Jan 2007

Following news that Venezuela plans to renationalise CANTV, Bolivia’s government is reported to be considering a similar plan for fixed line incumbent Empresa Nacional de Telecomunicaciones (Entel), writes BNamericas citing local press. According to the reports, the country’s President Evo Morales said ownership could revert to the state if it finds evidence of corruption or that the company has not complied with investment goals. As it stands, Entel is 50% owned by Euro Telecom International (ETI), itself owned by Telecom Italia via holding company International Communication Holding (ICH); the remainder is 48% owned by Bolivian citizens through pension fund administrators and 2% by Entel employees. Telecom Italia has long been looking to exit the company and in July 2005 ICH struck a deal to sell its entire stake to COTAS, but the deal collapsed in December after the two companies failed to agree terms.

Bolivia, Empresa Nacional de Telecomunicaciones (Entel)