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Cape Verde
Technology | Economy - Development

Cape Verde telecom market to be liberalised

afrol News / A Semana, 25 September - The Cape Verdean government and Cabo Verde Telecom are expected to sign an accord on Wednesday, September 27, consecrating the total liberalization of the telecommunications market beginning on January 1, 2007. CV Telecom will drop its court case against the State, in which it requested the suspension of the government’s law decree declaring the market open, while the government has given the green light for the readjustment of telephone fees.

Cape Verde’s telecommunications market will be opened up completely beginning January 1 of next year. Indeed, the government had already made this decision through a law decree approved earlier this year and which requires the renegotiation of the telecommunications company’s contract with Cape Verde, which gives it a monopoly on the land line network and on international calls.

The total liberalization of the market in all realms of telecommunications depends, in practical terms, on the negotiations between CV Telecom and the government, which began when the company requested the suspension of the government’s law decree in court.

According to an A Semana Online source, the two sides have reached an understanding, and a final accord is expected to be signed on September 27 by the Minister of infrastructures, Transportation and the Sea, Manuel Inocêncio Sousa, and by an administrator from Portugal Telecom, the main shareholder in Cabo Verde Telecom, which will drop its legal case and, in exchange, be allowed to modify the rates charged to land line customers.

One of the immediate consequences is expected to be a drop in the cost of international calls and the entry on the market of additional providers, particularly in the realm of mobile telecommunications.

Although Cabo Verde Telecom will remain the main provider of land line services as well, a number of changes are expected to take place, beginning with the basic monthly rental fee for telephone lines, which could go up from the current 250 escudos to 500 escudos (euro 2.25 to euro 4.50).

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