Subscribe to free Email Newsletter  
 
 
   

Chavez: China will help set up telecom
(AP)
Updated: 2006-08-21 09:45

CARACAS - Venezuela's President Hugo Chavez repeated a warning Sunday that he will bring Venezuela's largest telecom back under government control if it doesn't make court-ordered pension payments to ex-employees, and said China will help build a competing, state-run telecommunications network.

Venezuela's largest publicly traded company, CANTV is the dominant provider of fixed-line telephone service in Venezuela. Formerly run by the state, it was privatized in 1991.

In 2005 the Supreme Court ordered the telecom to increase more than 3,400 workers' pensions to take into account currency devaluations, inflation and minimum wage hikes since 1999.

"If you don't want to pay what is due to CANTV's retirees, I'm going to nationalize CANTV," Chavez said during his weekly TV and radio program. "Don't have the slightest doubt."

Chavez first mentioned a possible government takeover of Compania Anonima Nacional Telefonos de Venezuela, the South American country's largest telecom, on Tuesday.

Chavez also said on Sunday that China will agree to help Venezuela install a competing, state-run telecom network, in one of several accords to be signed this week in Beijing.

"We're going to take away the private monopoly, which is also so expensive, to provide telecommunications service to all," Chavez said.

CANTV officials were not available for comment.

The company said in February that it was setting aside more than US$55 million (euro43 million) extra to cover pensions. It also has contested part of the ruling and is awaiting a study of how much it owes the retirees.

 
Comments (total )   Print This Article    E-mail  
 

Related Stories
 
   
Copyright 1995-2007. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form.
Note: Browsers with 1024*768 or higher resolution are suggested for this site.
Registration Number: 20100000002731