Govt Plans Spectrum Valuation to Prepare for Auction

The Ecuadorian government plans to hire an investment bank to determine the value of the concessions and frequencies currently used by mobile operators Porta and Movistar, reported local daily La Hora.

These operators' 15-year concession contracts expire in two years. At that time, the Ecuadorian government will decide whether to renew the contracts or hold an international auction.

In both cases, it will be necessary to know exactly what the spectrum and concessions are worth. "This will allow us to know how much money the government should ask for in return for concession rights," said Hernán León, director of telecoms sector administrator Senatel.

Senatel plans to have the bidding terms and conditions ready by February. The government will then hold talks with Porta and Movistar between March and May in order to determine if they will be allowed to continue providing mobile service in the country.

The government will hold a separate tender to choose the international investment bank that will determine the value of the concessions and spectrum.

BNamericas.com"

Posted to the site on 24th January 2006