It’s official: BTL monopoly ends in 2003

“We welcome competition.” That’s the response given by Ediberto Tesucum, BTL’s Chief Executive Officer, when asked how he feels about government’s decision announced today by Cabinet, not to renew his company’s exclusive license to provide telecommunications services. Tesucum says they have not received any notification as yet from the government, but it’s a decision that was not unexpected. Tesucum says his company is ready for any competition and has already made plans to compete come January 2003.

Ediberto Tesucum, CEO, BTL

“We know that our license would be coming up for renewal anyway and so because of this expectation its nothing new to us. And in any case, we would welcome competition and for that matter we have been preparing. We have been planning this all along the way, and part of it has to do with a major capital spending that we will be doing in our new upgraded digital system for cellular that will be coming on stream as well. Then we have other areas we have been investing quite heavily, for example our wide area network, data services, internet and these kinds of things we welcome it really. This facility here is a test to the fact that we are preparing for these things.”

Jacqueline Woods

“What about lowering telephone rates?”

Ediberto Tesucum

“Well you know I am not going to comment on that right now, but just to say that we expected the announcement and that’s about it.”

Government says it made its decision to address concerns from the general public regarding the high cost of telecommunication services. BTL profits have generally run close to fifty percent of sales since the company was privatised in 1988. Despite a special nineteen percent tax on those profits, dividend payments to shareholders have run from a low of fifteen percent annually to a high of close to thirty percent, based on the price of the initial share offering.