As new contract talks near, Claro secures Ecuador concession extension

The Ecuadoran telecommunications ministry said it will sign an extension with operator Claro for its mobile concession.

The decision, which had been anticipated by the government, comes only days before the end of the concession on August 26. 

Negotiations for the renewal of the spectrum contract had been suspended in May for 120 days.

Claro said in a release that the extension was a "responsible and positive step" by the government so that the new negotiations can advance at a fast pace.

The government's decision was "necessary and urgent" to move forward with the renewal process, Patricia Falconí, executive director of sector association Asetel, told BNamericas. 

The extension will allow the company to continue providing services to close to 9mn customers, which represent 52% of the market. It will expire on the day the new contract is signed, telecom minister Vianna Maino said at a press conference. Maino estimates that the renegotiation process will last six months.

During the extension, Claro will continue to pay the State around US$3.3mn monthly for the rights to use the spectrum.

Rival operator Movistar will also see its concession expire this year, on November 30. Maino said the firm is not yet in need of an extension, while adding the issue is being looked at to guarantee services for Movistar's 4mn clients.

Falconí said it is key that the government presents the technical studies that will be used for the upcoming negotiations, as well as a timetable for the process.