NewsWhore
08-29-2007, 05:30 PM
Oscar Pena Chacon, the new chief executive of the largest Dominican telecommunications company, Codetel, has praised the business climate in the DR and announced that this year the company would be investing US$250 million, in their first year of their operation of the former Verizon operation. As reported in El Caribe, the company is investing in new infrastructure technology and expansion of its fixed and mobile lines nationwide. They are also working to expand their broadband internet services and optical fiber installations.
Codetel said that the company continues to be the national leader in telecommunications, with 50% market share in mobile phones and 75% of the fixed lines. The company's goal is to increase its market share to 80% in the next few years. The DR has 750,000 fixed line clients and 2.5 million cell phone clients.
Pena, nevertheless, said the country needs to advance in strengthening its institutions and legal system. He complained about the major losses the company has suffered due to thefts of fuel and cabling. He estimated losses in fuel at RD$10 million, with some 400 cases. He said that cases of theft have increased since 2004. Regarding cables, he said the company has suffered more than RD$45 million in losses. He said the level of theft had reached alarming levels. The theft of fuel occurs from the 600 telephone stations they have nationwide, that have been robbed for resale of the fuel.
Pena also criticized the high taxes on telecom services. At present, telecom services are taxed: 16% VAT (ITBIS), 10% Selective Tax on Consumption, 2% Tax to Telecom Development, for a total of 28%, which ranks it third in companies paying taxes for telecom, behind Brazil and Argentina. He backs the proposal from Indotel that suggests that the government should gradually reduce the Selective Tax on Consumption. He understands that telecom services are the nervous system of an economy, and if this is made more accessible it will operate better. Pena said that last year they paid RD$8 billion to the government in direct and indirect taxes.
More... (http://www.dr1.com/index.html#10)
Codetel said that the company continues to be the national leader in telecommunications, with 50% market share in mobile phones and 75% of the fixed lines. The company's goal is to increase its market share to 80% in the next few years. The DR has 750,000 fixed line clients and 2.5 million cell phone clients.
Pena, nevertheless, said the country needs to advance in strengthening its institutions and legal system. He complained about the major losses the company has suffered due to thefts of fuel and cabling. He estimated losses in fuel at RD$10 million, with some 400 cases. He said that cases of theft have increased since 2004. Regarding cables, he said the company has suffered more than RD$45 million in losses. He said the level of theft had reached alarming levels. The theft of fuel occurs from the 600 telephone stations they have nationwide, that have been robbed for resale of the fuel.
Pena also criticized the high taxes on telecom services. At present, telecom services are taxed: 16% VAT (ITBIS), 10% Selective Tax on Consumption, 2% Tax to Telecom Development, for a total of 28%, which ranks it third in companies paying taxes for telecom, behind Brazil and Argentina. He backs the proposal from Indotel that suggests that the government should gradually reduce the Selective Tax on Consumption. He understands that telecom services are the nervous system of an economy, and if this is made more accessible it will operate better. Pena said that last year they paid RD$8 billion to the government in direct and indirect taxes.
More... (http://www.dr1.com/index.html#10)