Wireless Federation

America Movil, Mexico, has planned to invest $3 billion in Ecuador for next fifteen years.
“The new contract is good for both sides: the government and the company,” says Daniel Bernal, legal counsel for America Movil’s local unit Porta Celular.
He also added that the firm has a long term commitment with Ecuador and is planning to invest nearly $200 million every year. The investment will help increase the coverage, especially in rural areas. Porta Celular will pay $480 million for the concession, with an initial payment of $289 millionand payments of 3.93% of its yearly revenue over the 15-year period. Of the 3.93%, 1% will go to the country’’s telecommunications fund, or Fodetel.
In case of contract violation, fines of up to $2 million are established. It sets the maximum charge for a minute of air time at $0.22, down from the current charge of $0.50 a minute.
“The contract is a landmark in Ecuador because it benefits everyone. The company could improve technology. The proceeds from the concession will go to the general budget, which will give priority to the National Connectivity Plan,” Jaime Guerrero, the nation’s telecommunications regulator said.
The plan offers to increase penetration and data transmission services in Ecuador.

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