Venezuela orders telcos to halt massive price hikes

Venezuela's telecoms regulator Conatel has ordered operators Telefónica and Digitel to suspend a major increase in prices that was planned for August 1.

In a statement, the watchdog said the order had come directly from President Nicolás Maduro.

The telcos had proposed rate hikes of up to 800%.

Runaway inflation has plagued the Venezuelan economy for several years and the IMF estimated in April that the full-year inflation rate for 2017 would be 721%. For 2018, the full-year inflation forecast is much higher at 2,069%.

Telefónica had planned changes to a total eight plans. For example, the Full 2.2 plan with 650MB and 450 minutes would have increased in price to 4,750 bolívares from 592 bolívares.

Digitel was proposing a price increase for its Plus 600 plan to 13,440 bolívares from 2,254 bolívares.

Conatel said the proposed increases had not been studied and approved by the regulator.

Turmoil and violence have been increasing in recent days in Venezuela. On Monday night, two opposition leaders were seized from their homes by government security agents, accused of inciting people to protest against Sunday's vote to choose the members of the national constituent assembly (ANC), the 545-member body dominated by the ruling socialist party that will have powers to rewrite the constitution and supersede the legislature.

At least 120 people have died in the last four months of anti-government protests in Venezuela.