Ecuador business chamber urges govt to renew mobile carriers' contracts

Ecuador's influential business chamber CEE has become involved in the controversy around the licensing of mobile carriers in the country, calling on authorities to proceed with the renewal of these contracts while reopening negotiations on their terms.

In May, regulator Arcotel decided to call a 120-day halt to negotiations for spectrum renewals with Telefónica, whose license expires in November, and América Móvil's Claro, whose license runs out this month.

“In order to guarantee the efficient and continuous provision of the service, it is essential for the current contracts to be extended and for a clear and precise schedule to be defined to ensure the resumption of the negotiation process that is currently suspended,” CEE said in a statement.

In stopping the talks, Arcotel cited disagreements over valuations of the radioelectric spectrum, including aspects related to the quality of services, although it said that provision of mobile services would not be interrupted or affected.

"The renegotiations are suspended until the best conditions are assured for the provision of services for the benefit of users, as well as the influence of these aspects in the valuation, as well as in the management of authorizations," the watchdog said at the time.

Echoing the opinion of mobile industry association GSMA, CEE said that the suspension created an environment of "legal uncertainty and vulnerability" in the country's telecommunications sector.

“We urge the national government to carry out immediate actions to guarantee legal certainty for the provision of a service in the national interest,” CEE said.

GSMA, which represents both of the carriers affected, was highly critical of the decision, calling it "one of the most significant events in the national telecoms portfolio in recent years," according to a statement.

Telefónica HispAm CEO, Laura Abasolo, said that the case of Ecuador is currently one of the group's chief regulatory concerns in the region.