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Publication Date: May 2005
Pyramid Research has formed a strategic partnership with ITI Research to provide you with high-quality Telecom Company Reports of industry players worldwide. For more details view our press release here.
These comprehensive reports on leading telecommunications operators worldwide cover all aspects of their operations, including quarterly-updated Executive Briefings on over 100 operators.
Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) was founded in Venezuela in June 1930 by private investors to provide certain telecommunications services as a concessionaire. The company progressively acquired other telephone companies nationwide and in 1950 the Venezuelan government bought all the shares from the various companies and initiated a nationalisation process.
In 1991, the government set forth a privatisation process in the context of which 40% of the company’s shares were publicly offered internationally and were acquired by Consortium Venworld. Venworld then obtained operating control of the company under the terms of the Concession contract signed with the government for an initial period of 35 years, and a possible additional extension of 20 years. The Concession established that CANTV would be the exclusive provider of local, domestic, and international long-distance communications services in Venezuela until November 2000 and also required the company to guarantee high quality service, modernise, and expand the local network, and establish a framework for the introduction of competition. November 2000 marked the deregulation of the telecommunications market allowing the entrance of new competitors.
CANTV is the leading Venezuelan telecommunications services provider. The company’s core businesses are basic telephony, private network, data, public telephone, rural, and telex services. In addition, CANTV also provides wireless communications services through its subsidiary Movilnet, Internet access services through its subsidiary Cantv.net, and telephone directory services through its subsidiary Caveguias.
CANTV’s principal strategic shareholder is a wholly-owned subsidiary of US-based Verizon Communications Inc, with 28.5% of the capital stock. Other major shareholders include the Venezuelan government with 6.6% of the capital stock (Class B shares), employees, retirees, and employee trusts, which own 7.0% (Class C shares), and Telefónica de Espana SA with 6.9%. Public shareholders hold the remaining 51.0% of the capital stock.
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