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.............................. CANTV Venezuelan Telephone Company
Logo and Trademark..............................
Compañía Anónima Nacional de Teléfonos de Venezuela (CANTV) is one of the first telephone service enterprises in Venezuela, founded in 1930, when businessman Félix A. Guerrero obtained a concession from the "Ministerio de Fomento" to build a telephone network primarily in the capital, and of course in the rest of the country. In 1950 the government acquired 100% of the shares, as part of a nationalization of industries, this was how the Venezuelan State embarked on a process to buy up privately owned telephone companies, the last one being Compañía de Teléfonos de San Fernando de Apure which it acquired in 1973. The company was privatized on December 15, 1991,the envelopes containing the bids were opened in a public act and the successful bidder was the consortium VenWorld Telecom, C.A. which bid US$ 1,885 million (US$ 1,085 million above the base price) for a 40% equity stake in the company. The VenWorld consortium was headed by GTE Corporation, with 51% of the shares. The other members of the consortium were Telefónica Internacional de España, C.A. Electricidad de Caracas, each with 16%, Consorcio Inversionista Mercantil CIMA with 12% and AT&T International with 5%. Thus began a new stage in the history of Cantv.
For the first six years as a privatized company, fixed and mobile voice and data networks were expanded and modernized; thanks to the largest capital investment ever made in Venezuela by a private firm: more than US$ 3 billion. This novel technological platform encompassing the whole country allows us to meet the growing demand for telecommunications, thanks to its being permanently updated, just as the Movilnet network was later on. A total of 1,981 kilometers of Cantv’s most important project were constructed during that period: the inter-urban fiber optic system that would enable the main cities in the country to be connected to the most modern and reliable telecommunications platform in the whole of Latin America. Another landmark during this period was the creation of Movilnet on May 19, 1992, using TDMA (Time Division Multiple Access) technology, Movilnet put new products and services on the domestic market with innovations like the caller ID service. By 1997 the operator had a customer base of 375,000 subscribers.
The Cantv of the 21st century is Venezuela’s flagship telecommunications company. It is much more than equipment, networks and systems; its stakeholders are many and varied and its business revolves around an activity in a constant state of expansion and technological change. Cantv is number one in Venezuela in voice and data transmission over Frame Relay, the global technology of choice, which facilitates the dynamic use of broadband, with a scalable access speed ranging from 64 to 2,048 kbit/s and excellent availability; through transmission networks that use land-based microwave radio systems, Cantv satisfies the communication needs of areas where the service cannot be provided through the cable platform. There is wide ADSL port coverage to provide nationwide broadband Internet in accordance with the plan to install 130,000 ports each year in the IP network, offering a higher average speed of at least 3,448 kbit/s per customer.
As of December 31, 2006, Cantv’s customer base numbered 8 million mobile subscribers, 3.4 million fixed telephony subscribers and 467,000 broadband subscribers. On 2007-01-08, President Hugo Chávez announced that Venezuela would nationalize CANTV, a move aimed at returning the company's control to the state. On April 8, 2007, the Venezuelan Government launched a tender offer to acquire Cantv’s shares in Venezuela (Class D) and in the United States (ADS). One month later on expiring the offer, the Government acquired 79.6% of the outstanding shares of the Company, in addition to the 6.6% which it previously owned, obtaining control of the Company with a total of 86.2% of its total shares.
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