Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Monday, April 02, 2007

ASETEL supports Telmex?s acquisition of Ecutel

The Telecommunications Association (ASETEL) of Ecuador authorized Telmex’s purchase of Ecuador Telecom, and affirmed that it does not deal with a  "oligopoly", as said by the president of Pacifictel, Walter Guerra last week.

“ASETEL welcomed Telmex to the wireless/fixed market”, highlighted Roberto Aspiazu, executive director of ASETEL, referring to the mentioned negotiation. The Union officer supported the idea that private companies have the opportunity to purchase companies, as part of the market opening.

On the other hand, Juan Carlos Solines, former president of the National Telecommunications Council (CONATEL), expressed, it is "absurd" to think of a monopoly because Telmex does not control the majority of the market and there is no competition law to determine if monopoly practices exist.

Aspiazu sustained that Ecutel, administrated by Telmex, will help to supply the 400,000 lines in deficit that Pacifictel has in the coastal region. Ecutel won the concession in 2002 and from that time has added 600 subscribers. The official foresees that the telecommunications business will increase starting 2008, when Emergia finishes installing a submarine cable to improve telecommunications traffic in the country.

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