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Ecuador: Telefonica 15 year license extension |
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Monday, 07 April 2008 |
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Ecuador's telecommunications agency CONATEL has extended Telefonica's mobile operating license by fifteen years.
Telefonica is the first mobile operator to renegotiate its contract with Ecuador’s government. In February, President Rafael Correa said America Movil and Telefonica would have to pay a combined US$ 700 million to renew their licenses. That renewal fee represents an enormous increase over the US$ 58 million the mobile operators originally paid for their licenses. CONATEL did not reveal the amount paid by Telefonica to extend its license until 2023.
Telefonica's Movistar unit controls 28% of Ecuador’s mobile market. Around 66% of subscribers use Porta, owned by America Movil. Ecuador’s mobile subscriber base is now 9.8 million, out of a population of 14 million. Source: Associated Press - WDR/Intelecon Regulatory News.
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