Honduras has been slow to liberalise its telecommunication sector. The government’s current plans call for liberalisation to commence in December, according to the Inter-American Telecommunications Commission (Citel), an OAS entity.

International tariffs have remained high to subsidise lower local and national tariffs, but this cross-subsidisation will end in December, when mobile operators Celtel and Megatel will enter the market.

"Local and national rates will have to go up. The increase will be as low as possible, but it is going to be difficult to not do it," David Matamoros, president of Honduran telecoms regulator Conatel said.

Hondutel, the state-owned monopoly fixed-line operator, generates significant government revenue. However, new private competitors should help compensate for this revenue reduction through tax payments, Matamoros said.

Source: Business News Americas