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Ecuador’s government has announced that it will extend its contract with Mexican telecommunications giant America Movil for a mobile phone concession until a new contract is signed. America Movil’s subsidiary, Conecel (trading under the brand Claro in Ecuador), currently holds a 52% market share in Ecuador’s telecommunications sector, with approximately 9.2 million subscribers.

Under the extension, Conecel will pay .3 million per month to the government. The extension period will last until the new contract is renegotiated, a process estimated to take around six months. The existing concession, signed in 2008, was originally set to expire on August 26, 2023. However, the new extension will take effect on August 27.

The government, now under the leadership of President Guillermo Lasso, made this decision as Ecuador prepares for a runoff election in October to determine his successor. This move ensures continuity and stability in the telecommunications sector during the transition period.

In addition to extending the contract with America Movil, Ecuador is also reviewing the possibility of extending the contract with Telefonica, which is currently set to expire in November 2023.

The negotiations for the new contract with America Movil will be for a duration of 15 years. The final value and new conditions are currently being evaluated by both parties.

Furthermore, in August 2019, America Movil pledged to invest close to 0 million in Ecuador over three years to enhance its services in the country.

The extension of the contract with America Movil and the potential extension with Telefonica highlight the government’s focus on maintaining a competitive and thriving telecommunications sector in Ecuador. These contracts and investments will contribute to the development and improvement of mobile phone services for the benefit of the Ecuadorian population.

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