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Paraguay's telecom regulator Conatel awarded Tigo Star, a brand of Luxembourg-based group Millicom, a license to offer DTH satellite TV services in the country. However, the watchdog's decision has been deemed as controversial, as the license was granted in September, a fact that was kept from the general public until last week.
Cable operators across the country are concerned that Tigo's new DTH license will reinforce the telco's dominant market position in the pay-TV segment and promote unfair competition, reported daily ABC. By the end of last year, Tigo controlled approximately 50% of Paraguay's pay-TV market, according to data from Conatel.
Ricardo Morales, president of cable operators association Acip, said the position Tigo will gain due to its new license will have a negative effect on some 85 cable operators in the country.
In this regard, the association will study the factors that resulted in the award of the licenses, which Tigo had been pursuing for three years, and will file a legal challenge against Conatel's decision.
"We are even assessing taking legal action against Conatel, as there was a violation of the telecommunications law and the authorities should respond," Morales was quoted as saying by the newspaper.
Earlier this year, Tigo's parent company Millicom acquired TV Cable Paraná, a cable provider based in Paraguay's second largest city, Ciudad del Este.