The Honduran government is said to be preparing a financial rescue package for state-backed telco Hondutel, as the scale of the company’s debt has been revealed. According to La Prensa, the stricken telco’s losses exceeded HNL298.9 million (USD12.4 million) in 1H21, which follows three consecutive years in which the company posted an annual net loss. Compounding the situation, state utility firm Empresa Energia Honduras (EEH) has cut off Hondutel’s electricity supply over the non-payment of its HNL450 million bill.
As per the report, Carlos Madero, the government’s general coordinator, has indicated that the plan will see Hondutel modernised to become a gigabit-capable ‘broadband institution’. The tentative plans will see the government invest in a new submarine cable to double or triple the country’s available bandwidth. Despite the dire situation, the privatisation of the company has been ruled out, however.