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<font size="1"><a href="https://venezuelanalysis.com/news/14887">https://venezuelanalysis.com/news/14887</a>
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<h1 class="gmail-reader-title">Venezuelan Government Seizes AT&T Assets, Looks to Re-establish DirecTV Cable Service</h1>
<div class="gmail-credits gmail-reader-credits">By Paul Dobson</div>
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<div><p>Mérida, May 25, 2020 (<a href="http://www.venezuelanalysis.com/">venezuelanalysis.com</a>)
– The Venezuelan government has begun seizing AT&T’s assets after
the firm decided to abandon the country to reduce exposure to US
sanctions.</p>
<p>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.</p>
<p>The actions came on the heels of a Friday<a href="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/"> ruling</a>
by the Supreme Court’s Constitutional Chamber in favour of the
“Customer Front in Defence of Communications Rights” consumer rights
group.</p>
<p>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.”</p>
<p>The judgement likewise ordered the body to re-establish the cable TV service immediately, as well as “protect workers’ rights.”</p>
<p>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 <a href="https://venezuelanalysis.com/news/13493">sanctioned </a>by Washington in 2017.</p>
<p>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.</p>
<p>AT&T announced it was<a href="https://venezuelanalysis.com/news/14881"> closing</a> its DirecTV cable TV service in the country last Tuesday,<a href="https://mobile.twitter.com/LeonardoEFA/status/1262882977853378560"> citing</a> a legal contradiction generated by the “impossibility to comply” with both Venezuelan law and US sanctions.</p>
<p>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<a href="https://venezuelanalysis.com/news/14615"> sanctioned</a>
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.</p>
<p>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.</p>
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<h2><a href="https://venezuelanalysis.com/files/contael21jpg">contael_2_1.jpg</a></h2>
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<p><a href="https://venezuelanalysis.com/files/images/%5Bsite-date-yyyy%5D/%5Bsite-date-mm%5D/contael_2_1.jpg" title="Estimated market shares for cable TV according to CONATEL. (@puzkas / Twitter)"><img src="https://venezuelanalysis.com/files/styles/full_content/public/images/%5Bsite-date-yyyy%5D/%5Bsite-date-mm%5D/contael_2_1.jpg?itok=XL0397Pz" alt="Estimated market shares for cable TV according to CONATEL. (@puzkas / Twitter)" title="" style="margin-right: 0px;" width="452" height="342"></a></p><div>
<p>Estimated market shares for cable TV according to CONATEL. (@puzkas / Twitter)</p>
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<p>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 <a href="https://venezuelanalysis.com/news/14819">measures</a> under the COVID-19 lockdown.</p>
<p>In response to the accusations, Guaido <a href="https://twitter.com/jguaido/status/1263888435682709504">claimed </a>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.</p>
<p>Analysts have received CONATEL’s seizures with mixed reactions, with some calling them “<a href="https://elpais.com/internacional/2020-05-22/venezuela-interviene-bienes-e-instalaciones-de-directv-tras-su-marcha-del-pais.html">symbolic</a>” and others<a href="https://mobile.twitter.com/Naldoxx/status/1263887632683106309"> pointing out</a>
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.</p>
<p>However, the issue has dominated headlines as millions spend their eleventh week indoors as part of the COVID-19 lockdown.</p>
<p>On Sunday, 111 new cases were identified, 93 of which were reportedly related to<a href="https://venezuelanalysis.com/news/14878"> migrants</a>
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.</p>
<p>Despite the <a href="https://venezuelanalysis.com/news/14878">recent surge</a>
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.</p>
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