State cellco close to hooking foreign partner

17 Jun 2009

Struggling Ecuadorian mobile operator Telecsa (Alegro PCS) is approximately two months away from reaching an agreement with a foreign strategic investment partner, reports BNamericas. Local press quoted the state-owned company’s president Cesar Regalado as saying that it needs an injection of resources and expertise to better streamline its operations. Three overseas companies were previously reported to be in the frame to partner Alegro, namely Uruguay’s Antel, Indonesia’s Telkom and Venezuelan state-run cellco Movilnet. Earlier this year, Ecuador’s President Rafael Correa said Alegro would be put up for sale in twelve months if did not improve its balance sheet, after it accumulated losses of USD200 million. Ecuador’s third largest cellco operates its own CDMA2000-based network, but delayed a plan to roll out GSM infrastructure due to lack of capital and instead is currently using wholesale GSM capacity from larger rival Movistar Ecuador.

Ecuador, Telecsa (Alegro PCS)