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Posted by on May 15, 2012 in Internet |

Uruguay Government plans to deliver monopoly state

(Cc) gsbrown99

A worrisome situation occurs in Uruguay, where President Jose Mujica said it will send a bill to grant a monopoly of the fiber optic ANTEL, the state telephone company.

At this time, Antel has a monopoly for fixed telephony, also maintaining a monopoly on internet via ADSL. The only competition they can offer other companies is through alternative technologies such as 3G. The current controversy began in late 2011, when Clear began selling fiber-optic service to businesses. Sure claimed that the fiber was in a legal vacuum, ensuring they have the right to sell the service.

The government had different opinions. “An announcement of Mr. President: In the next few days has been coordinated with the Ministry of Industry a bill to establish a monopoly in the public use of the optical fiber by ANTEL” said Secretary of the Presidency Alberto Breccia.

Initially, we attempted this through a decree, however, the plan changed to introduce a separate bill. The good thing is that you must go through discussion in Parliament, where perhaps a parliamentarian (hopefully?) Aware of what would give a monopoly to a single company.

Currently, ANTEL Internet offers the highest prices in the region, and the Uruguayans have no chance to choose another provider, unless you opt for 3G . On the other hand, being a monopoly, ANTEL has no incentive to improve the service offered or lower price.

Parliamentary debate is not the only option is to avoid this issue. Telephone companies of course are not happy with the idea and could present international demands, based on agreements signed by Uruguay, saying these measures that undermine competition.

Links:
Mujica said fiber optic law to be a monopoly of ANTEL (The Observer)
ANTEL Government protects and gives a monopoly in the optical fiber (The Observer)

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