Wednesday, September 17, 2008

Telecommunications - Ecuador - Report: New state telco to start operations next week

Ecuadorian fixed telephony operators Andinatel and Pacifictel will merge into a new state telco called Nacional de Telecomunicaciones (CNT), which will start operations next week, local press reported.


Pacifictel president Walter Guerra said that the main objective of the new telco was to offer better services through a single operator, with the goal of expanding fixed line telephony coverage and broadband services.

The new state telco will invest US$1bn over the next three years, Guerra was reported as saying.

The head of the country's telecoms council Conatel, Jaime Guerrero, told BNamericas that the creation of a new national state telecoms operator will result in benefits for end-users since rates will be cut.

The operators will not have to pay each other interconnections rates and as such the cost of fixed telephony will be lower, he said.

Guerrero added that if the new company pursues an agressive investment program, fixed telephony penetration in the country could expand.

According to the country's telecoms supervisory body Supertel, there were 1.84mn fixed line subscribers at the end of July. Andinatel had 983,780 subscribers, followed by Pacifictel, with 707,790 subscribers.



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