Cape Verde government prepares to liberalize telecommunications market

27 October 2006

Praia, Cape Verde, 27 Oct – The government of Cape Verde and the country’s only telecommunications company, Cabo Verde Telecom (CVT) are currently negotiating the liberalization of the sector after CVT took a government decision on its opening up to court.

The government had decided to liberalize telecommunications by January 2007 but the Supreme Court of Justice (STJ) of Cape Verde ruled that CV Telecom’s claim against the government was justified and suspended the decree law that took the company’s monopoly on international calls.

Now CVT and the government have met to negotiate the issue of compensation for the loss of the monopoly as well as updating tariffs in the country.

CVT admits that international calls are “expensive” but says that making up for this local calls are “cheap.”

“We are convinced that we will come to an agreement, but we are still negotiating,” said the head of the board of executives of CVT, António Pires Correia, admitting that for CVT, “balancing tariffs was a fundamental issue for liberalization.”

The Minister for Infrastructure Transport and the Sea told Portuguese news agency Lusa that no agreement had been reached so far on updating tariffs, which was one of the most sensitive points of the agreement.

Manuel Inocêncio Sousa said, however, that the date for liberalization of the telecoms sector in Cape Verde would be maintained. (macauhub)