Mercedes Alvaro
QUITO--Ecuador plans to begin formal negotiations next week with
two private mobile telecoms operating in the country for 4G
spectrum service, Telecommunications Minister Jaime Guerrero said
Wednesday.
Conecel SA, the local unit of Mexico's America Movil, has a
market share of about 68%. Otecel SA, the local unit of Spain's
Telefonica SA, has 29%, while state-run CNT EP has the
remainder.
Currently CNT EP is the only provider of 4G mobile service in
the Andean country.
Mr. Guerrero said there has been informal talks between the
government of President Rafael Correa and officials from Conecel
and Otecel.
"The Ecuadorean market is healthy, private operators have done
good business and are providing good service," Mr. Guerrero said.
"Companies must pay the value established by the state to operate
the 4G spectrum," he added, without providing further details.
Mr Guerrero said the value of the 4G spectrum will be
established according to projections of company earnings.
According to Mr. Guerrero, negotiations could end by the end of
the year and companies could begin providing 4G mobile service next
year.
Company officials couldn't be reached for comment.
In 2008, Conecel and Otecel renewed their respective concession
contracts with the government and signed new contracts for a
15-year period.
Write to Mercedes Alvaro at mercedes.alvaro@wsj.com
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