Telecommunication

The telecommunication sector is in a transitional phase from a state-regulated monopoly to a liberalized sector.  In September 2004 a new Telecommunication Act, which main purpose is to increase the number of telecom services and thereby expanding the variety and quality of the services provided, was passed.

Till 1997 the state-owned Telesur was the only company that had a concession to provide telecommunication services. In 1997 a concession was granted to a second company, ICMS NV. The lack of a regulatory framework regarding the interconnectivity caused disagreement regarding the required fee ICSM NV had to pay to Telesur. Therefore, the concession of ICMS NV was revoked  in 2003. The RPBG Ltd that provided telecommunication services on the basis of the ICSM-concession has been tolerated by the government to still provide these services.
A study of the sector has shown that to operate in a commercially profitable environment the sector can absorb two additional operators. The government will grant three companies a concession to provide telecommunication facilities in 2006.