CVG will now be able to offer the new services to customers in eight states, Conatel officials said in a statement. The company intends to create as many as 18,000 jobs over the next three years.

Chinese representatives and Venezuela’s government are expected to assist in the task of improving CVG’s transmission network. The government plans to build the necessary network connections by the end of 2005 to serve Caracas and other urban areas.

CVG Telecom is a subsidiary of Corporacion Venezolana de Guayana, a state-controlled mining conglomerate. CVG's president has said US$ 55.5 million would be invested over the next two years to get the telecom company off the ground. The company will initially offer data transmission services to areas not covered by privately owned telecom providers.

President Hugo Chavez considers CVG Telecom a significant project in that it is directed at creating new jobs and placing the government in competition with the private sector.

Source: Dow Jones - WDR/Intelecon Regulatory News