Paraguayan fixed line incumbent Compania Paraguaya de Comunicaciones (Copaco) is expected to cut the price of its international long-distance (ILD) services during the first quarter of 2010, BNamericas reports. Company president Mario Esquivel has been cited in the local press as saying that Copaco is currently investigating its ILD pricing structure to calculate how much of a cut to authorise. On 28 October 2009, Copaco implemented a 28% reduction in ILD rates to Argentina, Brazil, Spain and the US.
Meanwhile, the firm has introduced a new internet promotion to combat capacity shortages, offering 64kbps ADSL connections for USD5 a month. Technical issues have led to a shortage of capacity across the network, a situation exacerbated by last summer’s policy of upgrading users’ packages by doubling connection speeds. To try and prevent a loss of custom, Copaco has been forced to reintroduce the 64kbps service. Mario Esquivel said: ‘We cannot offer more capacity or else we will lose money.’ The company hopes it can overcome its networking issues before the scheduled launch of mobile and mobile broadband services later this year.