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Ecuador Says Won't Terminate America Movil Contract Early

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QUITO (Dow Jones) Ecuador's government Friday said that it has decided against terminating Mexican telecommunications company America Movil's service contract after it fixed technical problems.

National telecommunications secretary Jaime Guerrero said at a press conference that the company had resolved the outstanding problems.

Late last year, the nation's telecommunications regulator gave America Movil a timeframe to fix problems with the network of its local operator in Ecuador.

America Movil's local unit, Porta Celular, had service problems Sept. 25 that left some customers without service for around six hours, while the total outages were for more than 19 hours across the country, the government has said.

The concessions of the two private-sector operators, the local units of America Movil and Spain's Telefonica, expire this year - though an option exists to extend them.

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

(END) Dow Jones Newswires

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Tags: telefonica  america movil  option  porta  telefonica,  Ecuador