Suptel: Porta Arbitration Request "illegal"

Ecuador's telecoms supervisory body Suptel says a request from mobile operator Porta for an arbitration court to intervene in a dispute between the company and the sector administrator Senatel is illegal and inappropriate.

In a note to Senatel, Suptel said the request goes against the existing legal framework and if allowed to go ahead it would set a negative legal precedent.

Suptel has recommended that Senatel end Porta's contract because it believes Porta breached its concession terms.

Suptel head Paul Rojas said that arbitration was only permitted when there was a dispute over the terms of the contract, which is not the case and added that the request for arbitration was just an attempt to divert attention from the core issue which is to resolve technical problems experienced on Porta's prepaid platform.

Suptel has accused Porta of negligence regarding a technical problem in service that affected more than 6,000 subscribers on September 25 and said that the compensation offered by Porta was insufficient.

Porta, a unit of Mexican operator América Móvil, requested the Guayaquil city chamber of commerce arbitrate in the dispute.

Porta also filed with a Guayaquil court an appeal against legal proceedings started by Senatel that are aimed at rescinding Porta's license. Suptel's Rojas also said in the note that legal action is not acceptable and asked the judge to shelve Porta's petition.

Posted to the site on 26th November 2007