The story of the financially troubled, Honduran government-owned telecommunications company, Hondutel (also known as Empresa Hondureña de Telecomunicaciones), is not finished. While seeking new investments to be competitive in the market, Hondutel will submit U.S. $4.5 million (HNL90 million) to the state of Honduras in the 2013 fiscal year.
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This is part of a government plan that aims to recover different currencies from state-owned companies (SOEs): as Hondutel, the Pani and the National Port Authority, which together will send the state HNL160 million (U.S. $8 million). These institutions, which experienced losses due to their market position and competence, have had problems. It is not clear how Hondutel will submit the amount to the government while it is in debt.
Hondutel is expected to end this year with a deficit of U.S.$ 15.26 million (HNL 300 million).
The project still must be approved by the Congress of Honduras. Hondutel is searching for a strategic partner to improve its status within the mobile market.
Earlier this week, reports stated that Hondutel is studying a partnership proposal from the Uruguayan state-owned operator Antel, which is interested in supporting the Honduran government’s recovery of Hondutel. Antel reportedly plans primarily to finance Hondutel’s launch of mobile telephony services. Hondutel has not confirmed these reports.
Facing a deep financial crisis, Hondutel needs to secure at least U.S.$500 million in new investments to be competitive in the market.
