Andinatel to select Telecsa partner July 18

Ecuadorian state-run fixed line operator Andinatel will select a strategic partner for its mobile venture Telecsa on July 18 and sign the contract on August 1, local press reported. By Monday's deadline for bids Andinatel received offers from three of the 16 companies that bought the bidding rules - German consultancy Detecon, Sweden's Swedtel and Spain's Telefonica Mobile Solutions. The three bidders are highly qualified to ensure that Telecsa competes adequately with incumbent operators Conecel, of the America Movil (NYSE: AMX) stable, and BellSouth Ecuador, Telecsa chairman Richard Jaramillo said. However, Andinatel will be very price conscious and may call another selection process if their offers prove too expensive, he added. The eventual partner will recieve a three-year contract to implement Telecsa's business and investment plans, as well as the launch and operation of the company. The partner will also have right of first refusal should Telecsa shares go on sale. For the time being Telecsa will be a joint venture between Andinatel and sister company Pacifictel, although Andinatel has said Cuenca-based telco Etapa will be offered a 3-5% stake. In recent weeks there has been some doubt about Pacifictel's part in the venture since the telecoms regulatory enforcement agency Suptel has recommended intervention of the company because it has failed to meet buildout goals. However, Pacifictel CEO Mauricio Galindo said on Monday that intervention would have no impact on the company's plans to participate in Telecsa. Telecoms regulator Conatel is scheduled to decide on the issue next Monday.