­A new research report has revealed that operators in Ecuador are aggressively expanding their 3.5G HSPA coverage because they are all looking to mobile broadband as a way to sustain future growth.

As per researchers, Ecuador’s telecommunications market is one of extremes. The country’s highly penetrated mobile market boasted a 107% mobile subscription rate at year-end 2010, while the fixed market remains at 14.5% narrowband penetration unfavorably with the Latin American average of 16.7%. Ecuador’s broadband penetration only 2.7%, less than half of the regional average of 7.2%.

They added that though under penetrated fixed, broadband and pay-TV markets might suggest faster growth rates, a sometimes complicated regulatory environment – as evidenced by the 2008 renewal of Porta and Movistar’s cellular licenses – as well as limited competition, will maintain the growth rates at modest levels.

Given Ecuador’s relatively low fixed broadband penetration, operators see mobile broadband as the primary vehicle for meeting unmet demand for broadband connectivity in Ecuador. Due to the limited coverage, low connection speeds and high tariffs researchers believe that mobile operators will take the bulk of the traditionally fixed broadband opportunity in Ecuador. Porta, Movistar and Alegro are all actively pushing their mobile broadband platforms as an alternative to fixed broadband.

The maximum charge by mobile operators Porta and Movistar will come down to USD 0.30 from USD 0.50 per minute in 2008, according to a resolution passed by Ecuador’s telecommunications regulator, Conatel, El Universo reports. The decision will especially help prepaid customers, which account for 87 percent of all mobile phone users and are paying the highest rates. The new maximum rates will be applied to agreements currently being negotiated between the operators and the government. Conatel chairman Juan Carlos Solines said the move was intended to correct the gap between prepaid and postpaid. Currently, the average postpaid price is USD 0.08 per minute, compared to up to USD 0.49 for prepaid. The country’s third mobile operator, Alegro, is not involved in renegotiating its agreement with the government at present.

Source- http://www.telecompaper.com

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