Ecuador Government Aims To Sell Concessions For Telecom Cos
QUITO -(Dow Jones)- Ecuador's government on Tuesday announced plans to turn over management control of three state-run telecommunications companies to a private international firm, with an auction slated to be convened by early September.
Marcelo Arcos Astudillo, president of the so-called Solidarity Fund, which owns the state companies, said in an interview that the government is supported in the process by the International Telecommunications Union, a U.N. body that will handle the auction process.
According to Arcos, the concession contracts, which are expected to be granted by December, will be for 10 years. Investments of at least $100 million are expected.
The companies that will be going on the auction block are fixed-line service provider Pacifitel, which has about 663,000 clients and operates on the Pacific coast, Andinatel, which has 886,000 clients in inland areas, and wireless company Telecsa, which has 141,000 customers.
Previous governments have on various occasions tried to sell the state-run telecommunications companies, but plans have failed to take shape owing to strong opposition.
-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 25th May 2005
