4G, 5G spectrum tenders in Ecuador's digital plans

Ecuador’s government has announced its revamped digital connectivity plans, which include tendering spectrum in the 700MHz, 2.5GHz and 3.05GHz bands, cybersecurity initiatives and regulatory shifts to promote innovation in industry.

During an event, one of the main areas addressed by President Lenín Moreno on the so-called Ecuador Digital Strategy was 5G.

ICT minister Andrés Michelena said the ministry (Mintel) would award MHz and spectrum in the 700MHz and 2.5GHz bands in November and in the 3.5GHz band in 2020.

Speaking to local newspaper El Telégrafo, Michelena said the Ecuador Digital Strategy was focused on boosting the internet of things in agriculture, manufacturing, telemedicine and other areas.

The objective is to reach 80% coverage of 4G by 2021 and have assigned 65% of available spectrum for mobile compared to 27% currently.

The government also aims to have 80% of public paperwork to be available online by 2021 and 30% by the end of 2019 compared to 20% today.

The minister mentioned, among other initiatives, a plan to launch an investment fund for innovation.

Michelena said the government would push for reform of telecommunications legislation to help eliminate market distortions, end obstacles to installing infrastructure and reduce regulatory bureaucracy.

Mintel is working with the foreign trade, industry and finance ministries as well as the customs service to eliminate taxation on imported cellphones and computers, which are currently hit by duties of 5-15%. 

The mobile specific tax is the highest in Latin America and the spectrum tender system is geared towards maximizing income for the state, while excessive red tape in obtaining infrastructure permits and a revolving door at the regulator have inhibited development in the sector.

For more, read BNamericas’ Infrastructure Series report on Ecuador’s telecoms industry.