Cape Verde to liberalize fixed-line communications in January

6 December 2005

Praia, Cape Verde, 06 Dec – The government of Cape Verde has decided to open up the fixed-line telecommunications market to competition in January 2006, bringing an end to the monopoly of telecom operator CVT, majority-owned by Portugal Telecom, officials said Tuesday.

A legislative decree published by the Cape Verde government says that on January 1, 2006 the exclusivity of CV Telecom will come to an end in terms of, “providing a fixed-line telephone service, as well as installation, setting up and exploration of the telecommunications network that supports them.”

In relation to international calls the decree states that CVT will lose its exclusive status and its monopoly of providing a fixed-line service of rented circuits.

The new law follows the breakdown of negotiations between the government and CV Telecom on liberalization of calls.

The “forced” liberalization of the market may imply that the government will have to pay compensation to CV Telecom as the operator has an exclusive contract that only runs out in 2021. (macauhub)