America Movil pays up to stay in Ecuador

6 May 2008

Ecuador’s President Rafael Correa yesterday agreed to renew the mobile operating concession of America Movil’s (AM) subsidiary Conecel (Porta), the country’s regulatory head Jamie Guerrero announced to press in Quito. The news contradicted last week’s announcement by Guerrero that negotiations between AM and the state had failed and that the decision not to renew Porta’s licence was ‘irreversible’. According to Guerrero, following a meeting between Correa and AM’s CEO Daniel Hajj Aboumrad, AM has now offered the financial licence terms that ‘the state was waiting for.’ The President had previously demanded that the Mexican group pay USD480 million for the new 15-year 2G/3G concession, although Guerrero did not confirm Monday’s agreed price. On 30 April a third and ‘final’ offer from Porta of USD307 was deemed too low.