Alvin Lezama, head of Conatel, said that approval of the transaction could depend on the participation of two smaller Venezuelan operators who are merging with Telvenco. Last week, TIM agreed to sell mobile operator Digitel for US$ 425 million to Venezuela’s Telvenco. Telvenco will also merge with two small regional operators, Infonet and Digicel, whose owners will hold a share of the new venture.

"If the approval is sought by an investor who doesn't have operations in the country it will be simple and the decision will be relatively quick," Lezama said.

"But if the request is made by telecommunications operators established in the country, we would have to analyze what the effect of the deal would be," he said. In that case, the decision would involve the anti-monopoly authority, he said.

Lezama said the merger should not affect market competition because the two smaller operators involved with Telvenco operated in separate regions of Venezuela. Digitel – Venezuela’s third-largest mobile operator – will have around 1.8 million subscribers when it merges with the two regional providers.

Venezuela's mobile telephone market is led by Movistar, which has five million clients. CANTV Movilnet is the second-largest operator.

Source: Reuters - WDR/Intelecon Regulatory News