Enitel

active

On December 18, 2001 the Megatel consortium, comprised of Swedish firm Telia Swedtel and Honduran electricity company EMCE, paid $33 million to finalize the sale of a 40% share in the Nicaraguan Telecommunications Company (Enitel). According to the contract the consortium was to pay another $10 million a year for the next five years to administer the company. In January 2004, the remaining 60 percent of the project was sold to America Movil; and in 2004 America Movil became the single shareholder when they acquired the shares previously held by Megatel. The privatization was initially challenged in Nicaraguan courts by the mayor of Managua due to unpaid taxes the company owed the municipality. The Supreme Court and the president elect dismissed the charges prior to the closing of the deal. Enitel launched mobile telephony services in December 2002, for which it had installed a network with capacity for 200,000 subscribers. It also increased fixed lines by 10,000 to a total of 182,000 lines in service in December/January 2002. Enitel expected to cover 85 percent of the country by the end of 2003. !!! 2012 figures are out of line with 2011 !!! 2003 - 2006 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. 2007 Capex is an estimation based on the information from sponsor's annual report and projections made in 2006 on capex spending in 2007 (aggregate by regions) Commit. Inv. in Facilities from 2001-2003 was deleted because private sponsors owned < 50% (no controlling stake). Year % Private Inv. in Gov. Assets Commit. Inv. in Facilities 2001 40% 33 0 2002 40% 10 40 2003 40% 0 20 2004 99% 49 16.8 2005 100% 0 22.7