The government of President Hugo Chávez recently nationalized Venezuela’s main telecommunications company, CA Nacional Telefonos de Venezuela (CANTV). As a result, Chávez declared that phone rates will be lowered by as much as 20 to 30 percent.
“We have nationalized [CANTV] now we have to make a leap from a private capitalist company to a socialist state-
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Cell phone rates will be lowered 10 percent on June 15 and another 10 percent on Aug. 15. Landline to cell phone rates will be lowered by 20 percent while rates between CANTV’s cell phones and those of other company’s will be lowered by 30 percent.
Phone service access will also be greatly expanded, focusing on underserved and low-income areas. Landline service will be increased by 50 percent, up from a current level of 2.7 million households to 4 million in the next 18 months, and an additional 2 million cell phone customers will be added.
To oversee the expansion of CANTV, Venezuelans have formed into communal councils. The communal councils number in the tens of thousands and have a variety of committees to improve neighborhood public services.
“Only with community participation will we achieve that these companies will be truly socialist,” said Chávez.
