Market Concentration on Telecommunications Sector in Venezuela

Abstract

The object was identify the degree of concentration of the qualified operators who get out of a jam themselves in the segments of market of fixed local telephony and mobile cellular telephony in Venezuela for the period 2004-2007, allowing to have a vision of the companies that have market power in the sector of telecommunications in the country. We take as a reference Herfindahl-Hirschman’s index (IHH). There was compiled governmental information about this segment of national market. The study concludes that a high level of concentration exists in every item, being the qualified operators CANTV and MOVISTAR those who have the power of the telecommunications national market, affecting the competition and the revenue of new companies.