BUENOS AIRES, Argentina-With a growth rate above 50 percent during 2001 and a 20-percent penetration, cellular telephony has proven itself as the main communications vehicle in Paraguay.
Four operators compete nationwide. Telecel and Personal together control 95 percent of the market share, offering traditional cellular telephony and personal communications services (PCS) over TDMA networks, while Vox and Copesa offer PCS over GSM services, with 4 percent and 1 percent of the market share, respectively.
In a country known for the contraband of products, Juan Carlos Acosta, deputy marketing manager of Telecel, explained, “One of the motives for the level of penetration is the low access cost, because Paraguay absorbs the terminals that are no longer used in neighboring countries. The reconditioned terminals are sold at little more than US$30 each.
“The cost of a fixed Antelco line, the state monopoly operator, is very high (US$410). Also, there is a waiting period of up to two years for the installation, and sometimes it is necessary to bribe an employee.”
Out of 5.6 million inhabitants, only 6 percent have a fixed phone line. To close the gap, Antelco, which also possesses a PCS telephony license but has not yet started service, was audited last December with the aim of privatizing. The National Secretariat of State Reform contracted consultants Baker & McKenzie to monitor the operation, but Anatel’s workers union opposition led to Baker & McKenzie’s resignation in April. The privatization was postponed until December.
“The deficiencies of Antelco hinder the telecommunications market’s growth,” said Sergio Vel zquez, deputy manager of Vox. “Because of this, Vox is interested in acquiring it (Antelco) to optimize its resources and create a synergy between the fixed and cellular telephony offer.”
However, Vel zquez is doubtful of the privatization date. “At first it was going to be in September, and then it was postponed until December … and since this year there will be many political elections, nobody wishes to go against Antelco employees.”
Of the 5,200 permanent employees, only 2,000 would remain if the company is privatized, which means that of the US$600 million that could be paid for the company, about US$200 million would be destined to severance packages for the employees who are let go.
Along with Vox, majority owned by Japanese company KDDI; Telef
