Andinatel asks Senatel to set interconnection rates

Ecuadorian state-run fixed line operator Andinatel has asked telecoms sector administrator Senatel to intervene in the process of establishing interconnection fees for fixed to mobile calls, local newspaper El Comercio reported. Ecuador's telecommunications law specifies that operators can request intervention by Senatel if they are unable to reach an agreement within 60 days of negotiations. Senatel now has the final decision about the interconnection rate and 45 days to study reports from Andinatel and mobile operators. It must use this information to make a proposal, which will then require approval by all parties involved. The current interconnection agreement actually expired on April 29 and since then Andinatel has been in talks with mobile operators Porta and BellSouth Ecuador, without reaching any agreement on the general conditions. In early October, Andinatel reduced fixed to mobile call rates to US$0.20 a minute from US$0.29 a minute, of which the interconnection fee was US$0.23. Andinatel came up with the new rate after local analysts suggested the new fee should be US$0.18-0.22, in line with regional rates. However, there has not been any agreement regarding what percentage of this charge ahould go to Andinatel and how much to the mobile operators. Andinatel wants to receive the same US$0.06 it charged when the full rate was US$0.29 a minute, but according to the mobile operators, rates across the region suggest the fixed line operator should receive US$0.01.