Ecuador Tells America Movil Unit To Pay Back Clients

QUITO -(Dow Jones)- Ecuador's telecommunications regulator ordered cellular services operator Porta Celular, a subsidiary of Mexico's America Movil S.A. (AMX), to reimburse subscribers excessive charges going back to March 2000.

Porta Celular was accused last month of having overcharged some 1.8 million subscribers of its prepaid service till May, charging them for calls from the moment they pressed the "send" button until the call ended, which resulted in an extra 10 to 20 seconds on average for each call.

The order from Suptel, as the regulator is called, doesn't specify the amount of reimbursement, but directs the company to find ways to reach an agreement with overcharged subscribers.

According to plaintiff's lawyer Jorge Zavala, the total overcharged could amount to $344 million, including taxes.

Porta's legal representative Daniel Bernal said in an interview Wednesday the amount Zavala cited is baseless, and that Suptel's order "is of general nature and leaves open the possibility that subscribers who feel affected make claims with proof."

Bernal insisted that the company always followed the law and charged fees permitted by its Ecuadorian contract.

Meanwhile, the regulatory agency Wednesday said in a press release that Porta had said it "is committed to compensating for overcharges to subscribers."

Porta Celular has been operating in Ecuador since 1993 and currently has 2.4 million of subscribers in 22 provinces. Its investments since then approach $1 million.

The second-largest telecommunications in Ecuador is Spain's Telefonica S.A. (TEF), with more than 1.2 million users.

By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653;
mercedes.alvaro@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 13th July 2005