Compañía Anónima Nacional Teléfonos de Venezuela Stock

Compañía Anónima Nacional Teléfonos de Venezuela provides telecommunications services in Venezuela. The company also owns a nationwide basic telecommunications network, through which it provides local, domestic, and international wireline telephone services, as well as private network, data networks, public telephony, and rural telephony services.

The company, in addition, provides other telecommunications services, including national wireless communications, Internet access, and publication of telephone directories through its principal subsidiaries: Telecomunicaciones Movilnet, C.A. (Movilnet), CANTV.Net, C.A. (CANTV.Net), and C.A. Venezolana de Guias (Caveguias). As of December 31, 2007, the company maintained 4,999,630 access lines in service.

SEGMENTS

The company manages its operations mainly in two business segments, Wireline and Wireless Services.

The Wireline Services Segment provides local, domestic, and international long distance services, data transmission, and other wireline-related services.

The Wireless Services Segment provides nationwide cellular mobile services.

PRODUCTS AND SERVICES

Fixed Telephony

Local and Domestic Long Distance Services: The company offers local and domestic long distance telephone services. It offers domestic long distance plans, Noches y Fines de Semana Libre (free nights and weekends), and Plan Nacional 3000 (National Plan 3000).

Public Telephony: As of December 31, 2007, the company owned and operated 115,060 public telephone lines, located throughout Venezuela. Users of public telephones in Venezuela pay for calls based on the duration and destination of the call.

Telecommunication Centers: The company facilitates public access to telecommunications services through its telecommunication centers program. These telecommunication centers provide local, domestic long distance and international long distance telecommunications services, Internet access, equipment sales, sale of prepaid cards, mailing services, and copying and faxing services.

Rural Service: As of December 31, 2007, the company had 292 satellite-based lines serving rural areas with satellite technology. The company also provides rural services through wireless systems and by microwave radio-based stations.

International Long Distance Services

The company provides international services through submarine cables, satellite, and microwave links. It has two international digital switches, both located in Caracas. Its major international traffic routes are between Venezuela and North America (the United States, Mexico, and Canada) and South America (Colombia).

Wireless Services

The company, through its wholly-owned subsidiary, Movilnet, provides wireless communication services. Movilnet provides various services and products, such as voice mail, short message service (SMS), multimedia messaging service (MMS), call forwarding, call waiting, caller ID, conferencing, international long distance, international roaming, emergency number, and video streaming. In addition Movilnet provides global positioning system (GPS) satellite technology that provides vehicle tracking through the Internet, wireless broadband service through EvDO, windows mobile services, and BlackBerry service (a Research in Motion Ltd. trademarked product), which allows customers to stay connected with wireless access to email, corporate data, Internet, and organizer features through the phone.

The company markets its wireless services through a network of authorized agents and its commercial offices. It has agreements with third parties to act as authorized agents to capture and provide wireless services and equipment to new customers.

Other Telecommunications-Related Services

Data Transmission: The company’s data transmission services are provided through high-capacity private links. It has implemented virtual private network (VPN) technology and intends to improve its use by private line customers. The company has introduced ADSL technology, which allows simultaneous voice and data traffic on the same line.

Internet Access: The company provides Internet access service through its wholly-owned subsidiary, CANTV.Net. CANTV.Net provides broadband access through its product, Acceso a Banda Ancha (ABA) (Broadband Access) through ADSL and nationwide one-number dial-up Internet access, as well as international Internet roaming capabilities. CANTV.Net is an Internet service provider in Venezuela. In addition to Internet access, subscribers may choose from various products, such as Web hosting, Intranet development, VPN, and e-commerce solutions. In addition, CANTV.Net also provides Internet access through prepaid cards. The company has launched a wireless broadband Internet access offer for its ABA broadband subscribers, using Wireless Fidelity (Wi-Fi) technology, called Zona ABA Wi-Fi (Wi-Fi ABA Zone). The company provides 62 wireless access points (hotspots) nationwide, including 40 hotspots in Caracas.

Value-Added Services and Other Services: The company offers various value-added services and other services, including voice mail, call waiting, call forwarding, call blocking, caller ID, speed dialing, toll-free and 800-number services, video conferencing, audio text, 900 services, computer network management, outsourcing of telecommunications networks, and other intelligent network and data capabilities.

Directory Information Services: The company provides telephone directory information services through its 80%-owned subsidiary Caveguias. Caveguias publishes telephone directories (White Pages) and business directories (Yellow Pages). It also operates an Internet portal that provides on-line access to the company’s directories. Other directory services offered include Travel Guide, which provides tourism information; Mobile Guide, which gives cellular users access to commercial information and local, regional, and national services; specialized guides for shopping malls, entertainment and events, aesthetics, and beauty; Oil Guide, which provides information on the oil industry; and City Maps, which allows city map search to facilitate address searches. Caveguias sells advertising space in its printed and electronic directories.

COMPETITION

The company identifies competition from fixed local telephone and public telephony service providers, such as Telcel, C.A. (Movistar), Corporación Digitel C.A. (Digitel), Veninfotel Comunicaciones Vitcom, C.A.(Veninfotel) and Corporación Telemic, C.A. (Intercable); domestic long distance service providers, such as Movistar, Digitel, Veninfotel, Telecomunicaciones NGTV, S.A. (New Global Telecom), 123.com.ve, C.A. (123.com.ve), Multiphone Venezuela, C.A. (Multiphone), and Totalcom Venezuela C.A. (Totalcom); international long distance service providers, such as Movistar, Digitel, Veninfotel, New Global Telecom, 123.com.ve, Multiphone, LD Telecom Comunicaciones C.A. (LD Telecom), and Convergia Venezuela, S.A. (Convergia); and wireless service providers, such as Movistar and Digitel.

The company also identifies competition from data transmission service providers, such as CANTV, Movistar, New Global Telecom, Totalcom, Global Crossing Venezuela B.V. (Global Crossing), Comsat Venezuela, C.A. (Comsat), Telecomunicaciones Bantel, C.A. (Bantel), NetUno, C.A. (NetUno), Procesamiento Electrónico de Datos, S.A. (Procedatos), Satelites y Telecomunicaciones, C.A. (Satelca), Genesis Telecom, C.A. (Genesis Telecom), E-Quant Venezuela, S.A. (E-Quant), Charter Communications International de Venezuela C.A. (Charter International), Zulia Electrónica, C.A. (Zulia Electrónica), and MCI de Venezuela, C.A. (MCI Venezuela); and Internet service providers, such as Movistar, Etheron Servicios, C.A. (Etheron), Genesis Telecom, New Global Telecom, Totalcom, NetUno, Procedatos, E-Quant, Comsat, Charter International, Intercable, SuperCable ALK Internacional, S.A. (SuperCable), Centro Nacional de Tecnologías de Información (CNTI), IFX Networks Venezuela S.R.L. (IFX Networks), Dayco Telecom, C.A. (Daycohost); Global Crossing, World Tel-Fax Electronics, C.A. (World Tel-Fax), MCI Venezuela, Sprint International, S.R.L. (Sprint International), IP Net, C.A. (IP Net), Gold Data, C.A. (Gold Data), AT&T Global Network Services Venezuela, LLC (AT&T Venezuela), Atos Origin IT Servicios de Venezuela, S.A. (Atos Origin Venezuela), and Viptel Communications, C.A. (Viptel).

The company also competes with satellite operator, Globalstar de Venezuela (Globalstar); paging operators, such as Telemensajes Metropolitanos, C.A. (Telemensajes Metropolitanos) and Elca Telecomunicaciones, C.A. (Elca Telecomunicaciones); trunking service providers, such as Movistar, Procedatos, Satelca, Elca Telecomunicaciones, Americatel Sistemas de Comunicación, C.A. (Americatel), Radio Móvil Digital Venezuela, C.A. (Radio Móvil Digital), Comunicaciones Móviles EDC, C.A. (Conmóvil), and Evcon Telecomunicaciones, C.A. (Evcon); radiodetermination services providers, such as Sistemas Timetrak, C.A. (Sistemas Timetrack), Scada Com System, S.A. (Scada Com System), and Vehicle Security Resources de Venezuela, C.A. (Vehicle Security Resources); and cable TV operators, such as SuperCable, NetUno, Intercable, Vearco Telecom, C.A. (Vearco), Sistemas Cablevisión, C.A. (Cablevisión), and Galaxy Entertainment de Venezuela, C.A. (DirecTV). It also competes with Infonet Redes de Información, C.A.; Digicel, C.A.; and Telvenco S.A.

History

Compañía Anónima Nacional Teléfonos de Venezuela was founded in 1930.