Compania de Telecomunicaciones de El Salvador (CTE)

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Compania de Telecomunicaciones de El Salvador (CTE) was one of the two companies in which the assets of state-owned company Anatel were divided for their privatization. CTE included the entire fixed line network of Anatel and 20-year concession to run a 1900 Mhz PCS concession. The other company was International de Telecomunicaciones (Intel) which was formed to operate the country's Band-B concession for cellular phone services and some other assets of Anatel. CTE had 570,000 fixed line subscribers, and 164,000 mobile subscribers by December 2000. The company was privatized without any exclusivity rights because the telecommunications sector was already open to competition. Like Intel, CTE was privatized through an international competitive bidding in July 1998 when a 51 percent stake was sold for $275 million to a consortium led by France Cable and Radio, a subsidiary of France Telecom. The consortium was also integrated by Super Selectos distribution chain, Banco Agricola, Telecorporacion Salvadorena, and airline Taca. The government would offer a 10 percent stake to the employees. Another 14% were set to be offered through the local stock exchange in February 2001. The government would retain the remaining 25 percent stake. In 2002 the ownership consisted of 51 percent France Telecom, 43 percent Government of El Salvador, 6 percent employees of GTE. In 2003 America Movil acquired France Telecom's 51 percent share in CTE for US$417 million. In December 2004, the sponsor America Movil acquired additional shares from the government, bringing their share of project ownership to 94.9 percent. America Movil paid US$294.9 million for the additional shares. The company invested US$ 30 million in its PCS infrastructure in 1999. Investment figures for 2000 were not available, but France Telecom planned to invest US$ 400 million in the first 5 years of operations. !!! 2011 Investment Figures Missing!!! 2003 and 2004 investment figures were obtained by distributing America Movil's investment in facilities by the number of total subscribers for each project - thus investment is a proxy given other regional investment of America Movil. 2006 CAPEX is a proxy based on 2005 projections, reported aggregate LAC investment and number of subscribers. 2007 capex is an estimatation based on the information obtained from the sponsor's Annual Report. 2008 and 2009 capex is estimated by proportionally adjusting America Movil's global capex by the number of American Movil customers in El Salvador.