Porta and Movistar’s investments not affected by global economy

16 Apr 2009

Dow Jones Newswires reports that Conecel (Porta) and Movistar, the respective Ecuadorean mobile units of Mexico’s America Movil and Spain’s Telefonica, will not alter their plans to invest a total of USD205 million in the country this year to improve services, upgrade technology and expand network coverage, regardless of any effects of the global economic crisis. Officials from both companies made statements to reporters earlier this week at the contract signing ceremony for Ecuador’s mobile number portability (MNP) system, which is to be implemented by October. Alfredo Escobar, president of Porta, said that his company will invest about USD120 million during 2009, whilst Hernan Ordonez, vice president of Movistar Ecuador, confirmed an annual investment budget of approximately USD85 million. According to TeleGeography’s GlobalComms database, Porta held over 70% of the market at end-December 2008 with 8.1 million subscribers, ahead of Movistar with 3.1 million users (27%) and state-owned Telecsa (Alegro PCS) with just 303,000 customers or less than 3% of the market.