Telefonica to test Ecuadorian cable next month

17 Oct 2007

Telefonica Ecuador is planning test transmissions over a new international submarine cable landing in the country on 15 November, reports BNamericas quoting local daily El Comercio. The cable, with a landing station at Punta Carnero in the Guayas province, is designed to lower the cost of data transfer in Ecuador and according to the paper, talks are in progress between Spanish-owned Telefonica and local ISPs about selling wholesale internet connectivity at cheaper rates than are currently available. Telefonica claims the new infrastructure will bring down prices by 40% for ISPs and by 30% for end-users. However, Diego Salazar, manager of local ISP Andinanet, was quoted as saying that the prices offered by Telefonica were above an average of USD70,000 for a STM-1 basic transmission rate which allows 6,000 broadband connections. Telefonica has invested around USD35 million in submarine infrastructure and an additional USD7 million in terrestrial fibre-optic links to the cities of Guayaquil, Quito and Cuenca.

Ecuador, Telefonica