Three potential investors for Alegro

26 Jan 2009

Three telecoms operators have expressed interest in becoming the strategic partner of Ecuadorian state-owned mobile operator Telecsa (Alegro PCS), according to BNamericas quoting local newspaper El Telegrafo. The three potential investors are Venezuelan state-owned cellco Movilnet, Uruguay’s government-run telco Antel and Indonesian operator Telkom. According to the reports, selection of the partner will be concluded in 60-90 days, and is expected to inject capital to boost the mobile operator’s business in Ecuador, where it is positioned third in the subscriber market behind Mexican-backed Conecel (Porta) and Spanish-owned Movistar. Ecuador’s President Rafael Correa threatened earlier this month that if Alegro did not turn a profit within twelve months, it would be sold. According to previous press reports, the firm has reported USD200 million in losses since its creation.

Ecuador, Antel, Movilnet, Telecsa (Alegro PCS), Telkom Indonesia