Disappointing child Etapatelecom moves back home with parent

11 Dec 2009

Struggling Ecuadorian telco Etapatelecom will be merged back into its parent company, Cuenca-based municipal telecoms and utilities operator ETAPA, as the subsidiary shows no prospect of recouping the USD9 million in losses it accumulated in four years of operation, reports BNamericas quoting local press. Etapatelecom signed up only 2,700 clients to its internet, data and telephony services, compared to the 50,000 users its business plan specified by April 2009, whilst a plan to expand services to Ecuador’s two largest cities, Quito and Guayaquil, did not come to fruition. Municipally-owned ETAPA (Empresa publica municipal de Telefonos, Agua Potable y Alcantarillado), serves local telephony users in Cuenca, and Etapatelecom is an independent company set up by ETAPA in 2002 to operate outside Cuenca. The small unit offers services mainly to corporate customers, under a national licence granted in late 2003, and had planned to expand into the consumer sector, but mismanagement has been blamed for its failure to grow.

Ecuador, ETAPA