Movistar wins new 15-year contract

8 Apr 2008

Telefonica’s Ecuadorian mobile subsidiary Movistar has reached an agreement with Rafael Correa’s government to extend its operating concession by 15 years to 2023, the country’s telecoms supervisory body Suptel revealed, without disclosing licence fee terms. The agreement is subject to approval by sector regulator Conatel. The government had previously argued that the new licence period should be ten years, and that concession fees paid by Movistar and rival Conecel (Porta) should add up to a total of USD700 million, compared to approximately USD50 paid for the original licences. Porta, the local unit of America Movil, is still in negotiations with the authorities. The new contracts will cover 3G W-CDMA services, not included in existing concessions; despite the lack of formal 3G licensing, TeleGeography’s GlobalComms database shows that Conecel pressed ahead with its next generation ambitions, launching W-CDMA-based services under the banner GSM Turbo 3G in August 2007.

Ecuador, Movistar Ecuador (Otecel)