Mexico's America Movil Signs New Ecuador Concession
Published on: 26th Aug 2008
Note -- this news article is more than a year old.
MEXICO CITY (Dow Jones) Mexico's America Movil, Latin America's largest mobile operator, said Tuesday that it has signed a new operating concession with the Ecuadorian government.
In a press release, America Movil said the concession is valid for 15 years.
Earlier this year, the government of President Rafael Correa threatened to take over America Movil's local operations, where it provides service under the commercial name Porta Celular, after failing to reach an agreement over the terms and price of renewing its concession, which was set to expire this week.
In May, however, America Movil agreed to pay about $480 million for a new concession.
Porta Celular is Ecuador's leading mobile operator, with 7.37 million subscribers at the end of July. Movistar, a unit of Spain's Telefonica, holds the No. 2 spot, with more than 2.9 million users. State-run Alegro has 657,000 clients.
At the end of June, America Movil had 165.3 million wireless subscribers in 16 countries in the Americas.
-By Ken Parks, Dow Jones Newswires; 52-55-5001-5723; firstname.lastname@example.org
(END) Dow Jones Newswires