After running out of food and toilet paper, Venezuelan residents will soon find it very difficult to make long distance phone calls because the government owes local companies around 700 million dollars to foreign providers that it cannot pay. According to Aserne, Spanish telecoms giant Telefonica providing service to United States, Spain, Mexico, Italy, Brazil, Colombia and Panama will suspend service. Mobile phone company Digitel has already suspended service in many areas. Venezuela is one of the biggest consumers in Latin America for mobile data.
The bad news for residents does not end there. State-run television company Cantv will not provide coverage to some areas and will decrease the number of available channels. While the rates for cell phone service and television service is extremely low causing many people to sign up, these services say they cannot continue without the government paying their bill. Yet expert Manuel Gonzalez thinks, the government cannot pay its bill because of the drop in oil prices.