CANTV
Encyclopedia
CANTV is one of the first telephone service enterprises in Venezuela
, founded in 1930. The company was re-nationalized in 2007.
As of May 9, 2008, Cantv’s customer base numbered 10.1 million mobile subscribers, 5.2 million fixed telephony subscribers and 1,000,000 broadband subscribers.
On 31 December it became the local operating company for the assets of the Venezuelan Telephone and Electrical Appliances Company Limited, an English firm which had been operating in Venezuela for 40 years between Caracas and Puerto Cabello, San Juan de Los Morros, Ocumare del Tuy and Macuto, and had recently acquired the Maracaibo telephone company in 1929. The foreign company, renamed telephone Properties Ltd, still held 100% of the ordinary shares in the Nacional company, and maintained its investment; at the time of transfer it was in the process of automating its network of exchanges.
After a commission spent several years enquiring into ways of expanding the service, in 1953 the government announced its intention to acquire 100% of the shares of Cantv at a price of US$7.1M, as part of the state's program of nationalization. Over the following years it bought up the other privately owned telephone companies, the last one being Compañía de Teléfonos de San Fernando de Apure which it acquired in 1973.
The VenWorld consortium was headed by GTE
Corporation, with 51% of the shares. The other members of the consortium were Telefónica Internacional de España
, C.A. Electricidad de Caracas
, each with 16%, Consorcio Inversionista Mercantil CIMA with 12% and AT&T
International with 5%.
On January 8, 2007, President Hugo Chávez
announced that Venezuela would re-nationalize CANTV, a move aimed at returning the company's control to the state. On April 8, 2007, the Venezuelan Government launched a tender offer
to acquire Cantv’s shares in Venezuela (Class D) and in the United States (ADS). One month later on expiring the offer, the Government acquired 79.6% of the outstanding shares of the Company, in addition to the 6.6% which it previously owned, obtaining control of the Company with a total of 86.2% of its total shares.
For the first six years as a privatized company, fixed and mobile voice and data networks were expanded and modernized, thanks to the largest capital investment ever made in Venezuela by a private firm: more than US$ 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
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.
Cantv offers below average voice and data transmission over Frame Relay, which facilitates the inconsistent use of broadband, with a scalable access speed ranging from 64 to 2,048 kbit/s; through transmission networks that use land-based microwave radio systems, Cantv provides services to areas unconnected to 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, claiing to offer an average speed of at least 1,200 kbit/s per customer. The reality for customers, however, are much lower speeds and frequent disconnections.
Cantv.net, offers broadband access using ADSL technology and wireless broadband service through Movilnet's 3G network 1x EV-DO / UMTS / HSDPA in areas where the wired network does not reach the subscriber. It covers the major share of the Venezuelan broadband market, having reached 53% in 2001 and 76% in 2003, reaching more than 800.000 broadband access customers in 2007. Wireless connections, however have a 6 GB per month limit, a major blight upon claims that Venezuela's infrastructure is actually still developing. Currently there are plans to deploy Television Service over their wired broadband network (IPtv) in late 2011. Given this company's past failures, most Venezuelans are not very optimistic about the odds that this service will even come close to succeeding.
network over major cities in Venezuela. This network was then upgraded to TDMA
in 1997. Movilnet offers wireless voice, data, and wireless fixed telephony, among many other services over its digital network. Today, Movilnet's wireless networks are based on 1xRTT CDMA2000
, EV-DO in the 800 MHz frequency and a GSM / GPRS / EDGE
/ UMTS / HSDPA in the 850/1900 MHz. Both networks with nationwide coverage. In the present Movilnet has more than 1,400 1xRTT base stations, and about the same number in GSM, having more coverage than any other provider. Movilnet, reaching over 10 Million Subscribers in 2008, is also the largest Wireless service provider in Venezuela closely followed by Movistar
.
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
, founded in 1930. The company was re-nationalized in 2007.
As of May 9, 2008, Cantv’s customer base numbered 10.1 million mobile subscribers, 5.2 million fixed telephony subscribers and 1,000,000 broadband subscribers.
Origins
In 1930 the "Ministerio de Fomento" of the Gómez government granted a concession to Félix A. Guerrero to build and operate a telephone network in the Federal District and the States of the Union. With fellow shareholders Manuel Pérez Abascal, an entrepreneur, and Alfredo Damirón, an attorney, they registered Compañía Anónima Nacional Teléfonos de Venezuela on 20 June 1930.On 31 December it became the local operating company for the assets of the Venezuelan Telephone and Electrical Appliances Company Limited, an English firm which had been operating in Venezuela for 40 years between Caracas and Puerto Cabello, San Juan de Los Morros, Ocumare del Tuy and Macuto, and had recently acquired the Maracaibo telephone company in 1929. The foreign company, renamed telephone Properties Ltd, still held 100% of the ordinary shares in the Nacional company, and maintained its investment; at the time of transfer it was in the process of automating its network of exchanges.
After a commission spent several years enquiring into ways of expanding the service, in 1953 the government announced its intention to acquire 100% of the shares of Cantv at a price of US$7.1M, as part of the state's program of nationalization. Over the following years it bought up the other privately owned telephone companies, the last one being Compañía de Teléfonos de San Fernando de Apure which it acquired in 1973.
Privatization and re-nationalization
The company was privatized on December 15, 1991, the envelopes containing the bids were opened in a public act and the successful bidder was the consortium VenWorld Telecom, C.A. which bid US$ 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
GTE
GTE Corporation, formerly General Telephone & Electronics Corporation was the largest independent telephone company in the United States during the days of the Bell System....
Corporation, with 51% of the shares. The other members of the consortium were Telefónica Internacional de España
Telefónica
Telefónica, S.A. is a Spanish broadband and telecommunications provider in Europe and Latin America. Operating globally, it is the third largest provider in the world...
, C.A. Electricidad de Caracas
Electricidad de Caracas
Electricidad de Caracas is the integrated electricity company for Caracas, Venezuela and surrounding areas, with more than 1 million connections. It was acquired by AES Corporation in 2000 and sold to the state-owned oil company PDVSA in 2007, which now owns 93.62%...
, each with 16%, Consorcio Inversionista Mercantil CIMA with 12% and AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
International with 5%.
On January 8, 2007, President Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
announced that Venezuela would re-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
Tender offer
Tender offer is a corporate finance term denoting a type of takeover bid. The tender offer is a public, open offer or invitation by a prospective acquirer to all stockholders of a publicly traded corporation to tender their stock for sale at a specified price during a specified time, subject to...
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.
Network expansion and modernization
Digital AMPS
IS-54 and IS-136 are second-generation mobile phone systems, known as Digital AMPS . It was once prevalent throughout the Americas, particularly in the United States and Canada. D-AMPS is considered end-of-life, and existing networks have mostly been replaced by GSM/GPRS or CDMA2000...
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.
Cantv offers below average voice and data transmission over Frame Relay, which facilitates the inconsistent use of broadband, with a scalable access speed ranging from 64 to 2,048 kbit/s; through transmission networks that use land-based microwave radio systems, Cantv provides services to areas unconnected to 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, claiing to offer an average speed of at least 1,200 kbit/s per customer. The reality for customers, however, are much lower speeds and frequent disconnections.
Subsidiaries
In addition of Phone service, other services provided by CANTV are divided into three subsidiaries wholly owned by CANTV, which handle internet access, cellular phone service, and directory services.CANTV and CANTV.NET
Most of cantv wired telephone network rely over copper wire network, also known as POTS. In 2006 Cantv started offering VoIP, or Internet Phone Service to its broadband users, regardless of the fact that VoIP communication through Cantv is shoddy at best. Internet service in addition to dial-up, ISPInternet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
Cantv.net, offers broadband access using ADSL technology and wireless broadband service through Movilnet's 3G network 1x EV-DO / UMTS / HSDPA in areas where the wired network does not reach the subscriber. It covers the major share of the Venezuelan broadband market, having reached 53% in 2001 and 76% in 2003, reaching more than 800.000 broadband access customers in 2007. Wireless connections, however have a 6 GB per month limit, a major blight upon claims that Venezuela's infrastructure is actually still developing. Currently there are plans to deploy Television Service over their wired broadband network (IPtv) in late 2011. Given this company's past failures, most Venezuelans are not very optimistic about the odds that this service will even come close to succeeding.
Movilnet
The mobile phone component of CANTV was founded in 1991. In its first year it reached about 21,000 clients while deploying an AMPSAdvanced Mobile Phone System
Advanced Mobile Phone System was an analog mobile phone system standard developed by Bell Labs, and officially introduced in the Americas in 1983, Israel in 1986, and Australia in 1987. It was the primary analog mobile phone system in North America through the 1980s and into the 2000s...
network over major cities in Venezuela. This network was then upgraded to TDMA
Digital AMPS
IS-54 and IS-136 are second-generation mobile phone systems, known as Digital AMPS . It was once prevalent throughout the Americas, particularly in the United States and Canada. D-AMPS is considered end-of-life, and existing networks have mostly been replaced by GSM/GPRS or CDMA2000...
in 1997. Movilnet offers wireless voice, data, and wireless fixed telephony, among many other services over its digital network. Today, Movilnet's wireless networks are based on 1xRTT CDMA2000
CDMA2000
CDMA2000 is a family of 3G mobile technology standards, which use CDMA channel access, to send voice, data, and signaling data between mobile phones and cell sites. The set of standards includes: CDMA2000 1X, CDMA2000 EV-DO Rev. 0, CDMA2000 EV-DO Rev. A, and CDMA2000 EV-DO Rev. B...
, EV-DO in the 800 MHz frequency and a GSM / GPRS / EDGE
Enhanced Data Rates for GSM Evolution
Enhanced Data rates for GSM Evolution is a digital mobile phone technology that allows improved data transmission rates as a backward-compatible extension of GSM...
/ UMTS / HSDPA in the 850/1900 MHz. Both networks with nationwide coverage. In the present Movilnet has more than 1,400 1xRTT base stations, and about the same number in GSM, having more coverage than any other provider. Movilnet, reaching over 10 Million Subscribers in 2008, is also the largest Wireless service provider in Venezuela closely followed by Movistar
Movistar
Movistar is a major Spanish mobile phone operator owned by Telefónica Móviles. It operates in Spain and in many Latin American countries. It is the largest carrier in Spain with 22 million customers and 41.58% of market share. Its principal competitor in Latin America is America Movil...
.
Caveguías
Caveguías provides both printed and electronic directories for CANTV clients and subscribers.External links
- Cantv (Corporate site, virtual office)
- Cantv.net (Portal)
- Movilnet
- Caveguías
- Forbes Global 2000 (2007)
- Venezuelanalysis.comVenezuelanalysis.comVenezuelanalysis.com: Venezuela News, Views and Analysis is a news website, which describes its aim as being "to provide on-going news about developments in Venezuela, as well as to contextualize this news with in-depth analysis and background information...
, 15 March 2010, Venezuela's CANTV: What should a 21st century “socialist” telecommunications company look like?