CELLULAR BAND B LICENSING ANNOUNCED.

Continuing its steps towards the liberalization of the telecommunications sector, on October 18, 2000 the National Telecommunications Commission (CONATEL) announced its intention to solicit bids for the concession of the country's Band B mobile cellular system. The 1995 Telecommunications

The new operator will have the following benefits under the Band B concession: (1) Use of extended B bands; (2) Potential for the provision of international long distance telephony;

On September 23, 1996, Honduras inaugurated its first cellular system through the Band A cellular system contract with the U.S. firm, Motorola. At present, Motorola's local subsidiary (Celtel) has over 81,000 subscribers, and demand for mobile telephony services is growing at a monthly rate of 8%. According to Conatel, the total market for cellular telephone service is estimated at 400,000 users;

Unmet demand for basic telephone services is one of the factors influencing the growth of the wireless telecommunications sector in Honduras. Even though the quality of Honduras' telecommunications network has improved significantly in recent years, access to telecommunications service remains well below the Latin American average. The installed telephone network capacity is about 401,671 lines, with 290,323 lines in service. Line penetration for the entire country is 63% with 4.57 telephone lines per 100 inhabitants;

Demand for mobile telecommunications services has also increased since Hurricane Mitch, mainly as a result of the temporary damage to the country's telecom infrastructure. In addition, recent implementation of the "calling party pays" cellular payment system has increased demand for mobile telephone services in the local market. Prospective concessionaires may be interested in expanding cellular capacity to take advantage of existing market potential. Details: Dante Mossi, Comisionado, National Telecommunications Commission (CONATEL), Colonia Modelo, Apartado Postal 15012, Tegucigalpa, M.D.C., Honduras. Tel:(504) 234-8600. Fax: (504) 234-8611. E-mail: dmossi@conatel.hn. U.S. firms may also wish to contact: U.S. Commercial Service, American Embassy, Tegucigalpa, Honduras, APO AA 34022 Unit 2923. Tel: (504) 238-5114. Fax: (504) 238-2888. Contacts: Melissa Zellner, Economic Officer. Kevin D. Skillin, Economic & Commercial Officer. Rossana Lobo, Commercial Specialist