[News] Venezuelan Government Seizes AT&T Assets, Looks to Re-establish DirecTV Cable Service

[Anti-Imperialist News]

 https://venezuelanalysis.com/news/14887 Venezuelan Government Seizes AT&T
Assets, Looks to Re-establish DirecTV Cable Service
By Paul Dobson
------------------------------

Mérida, May 25, 2020 (venezuelanalysis.com
<http://www.venezuelanalysis.com/>) – The Venezuelan government has begun
seizing AT&T’s assets after the firm decided to abandon the country to
reduce exposure to US sanctions.

At least three Caracas installations belonging to the US telecommunications
multinational have reportedly been occupied by the state regulator CONATEL
and the Bolivarian Armed Forces over the weekend, including its
transmissions centre in Los Caobos, main administrative headquarters in El
Rosal and principal commercial office in Las Mercedes.

The actions came on the heels of a Friday ruling
<https://www.facebook.com/notes/tribunal-supremo-de-justicia/sala-constitucional-del-tsj-ordena-la-ocupaci%C3%B3n-e-inmediata-restituci%C3%B3n-del-serv/2996381053803012/>
by the Supreme Court’s Constitutional Chamber in favour of the “Customer
Front in Defence of Communications Rights” consumer rights group.

As part of the verdict, CONATEL was authorised to take control of the
Texas-based firm’s “property and goods, commercial offices, administrative
headquarters, operational and transmission centres, antennas and any other
equipment or installations.”

The judgement likewise ordered the body to re-establish the cable TV
service immediately, as well as “protect workers’ rights.”

Similarly, a new ad-hoc board is to be named and presided over by CONATEL
Director General Jorge Marquez. The Bolivarian National Guard
brigadier-general also serves as minister for the presidential dispatch and
was sanctioned <https://venezuelanalysis.com/news/13493>by Washington in
2017.

In addition, the Supreme Court imposed a travel ban on the former directors
of AT&T’s subsidiary in Venezuela, DirecTV, as well as the freezing of all
personal assets. Banking regulators SUDEBAN were also instructed to halt
all customer payments processed since the service was interrupted.

AT&T announced it was closing <https://venezuelanalysis.com/news/14881> its
DirecTV cable TV service in the country last Tuesday, citing
<https://mobile.twitter.com/LeonardoEFA/status/1262882977853378560> a legal
contradiction generated by the “impossibility to comply” with both
Venezuelan law and US sanctions.

Venezuelan law dictates that cable and satellite providers are obligated to
dedicate eight percent of their total programming to nationally broadcast
channels, including state-run PDVSA TV and privately-held Globovision, both
of which have been sanctioned <https://venezuelanalysis.com/news/14615> by
Washington. AT&T announced it was withdrawing from Venezuela of immediate
effect, a decision which was taken without consulting local management, to
avoid exposure to US Treasury Department punitive measures.

The closure of DirecTV has reportedly impacted over two million Venezuelan
households and 600 employees. The firm, which had been operating in
Venezuela for 24 years, held a 45 percent share of the local market and
offered 300 channels.
contael_2_1.jpg <https://venezuelanalysis.com/files/contael21jpg>

[image: Estimated market shares for cable TV according to CONATEL. (@puzkas
/ Twitter)]
<https://venezuelanalysis.com/files/images/%5Bsite-date-yyyy%5D/%5Bsite-date-mm%5D/contael_2_1.jpg>

Estimated market shares for cable TV according to CONATEL. (@puzkas /
Twitter)

President Nicolas Maduro was quick to point the finger for the closure at
opposition leader Juan Guaido on Sunday, alleging that he had worked with
Washington to “pressure” DirecTV into “eliminating people’s right to
information and entertainment.” In March, Maduro banned all
telecommunications firms, as well as other service providers, from cutting
off customers for six months as part of a series of protective measures
<https://venezuelanalysis.com/news/14819> under the COVID-19 lockdown.

In response to the accusations, Guaido claimed
<https://twitter.com/jguaido/status/1263888435682709504>that AT&T’s move
was caused by government “censorship” rather than US sanctions.The US
firm’s communique made no mention of Venezuelan government pressure. Guaido
also went on to suggest that his team was “fighting” to reactivate the
cable service by redirecting it from abroad, where the service costs
significantly more.

Analysts have received CONATEL’s seizures with mixed reactions, with some
calling them “symbolic
<https://elpais.com/internacional/2020-05-22/venezuela-interviene-bienes-e-instalaciones-de-directv-tras-su-marcha-del-pais.html>”
and others pointing out
<https://mobile.twitter.com/Naldoxx/status/1263887632683106309> the
complexities of having an ad-hoc board led by a sanctioned Venezuelan
government official reactivate a service which contracts TV channels,
satellites and technological infrastructure owned and based in the United
States.

However, the issue has dominated headlines as millions spend their eleventh
week indoors as part of the COVID-19 lockdown.

On Sunday, 111 new cases were identified, 93 of which were reportedly
related to migrants <https://venezuelanalysis.com/news/14878> returning
from Colombia or Brazil. As a result, the government has unveiled plans to
“strengthen” quarantine camps on the country’s borders, where returning
Venezuelans are obliged to observe a 14-day quarantine period.

Despite the recent surge <https://venezuelanalysis.com/news/14878> in
cases, on Sunday Vice President Delcy Rodriguez also informed that the
government is “evaluating” an easing of the lockdown, with hardware stores,
dentists and some banks highlighted for potential reopening. At the time of
writing, Venezuela has 1121 identified coronavirus cases after carrying out
a reported 804,000 tests.
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