Posts filed under ‘Ecuador’
Ecuadorian telecoms authority Superintendencia de Telecomunicaciones (Suptel) has reported that, at the end of 2008, cellular connections in the country reached a total of 11.5 million, with market leader Conecel (Porta) recording 8.1 million users, followed by Movistar Ecuador with 3.1 million subscribers and Telecsa (Alegro) trailing with 303,000 active mobile SIMs. The operators reported that the majority of their mobile phone users remain on pre-paid tariffs: 88.57% at Porta, 84.88% of Movistar’s total base and 85.56% of Alegro customers.
Mexican telecoms giant America Movil (AM) has announced a surprise 14.5% year-on-year rise in net profit for the three months ended 31 December 2008, to MXN16.3 billion (USD1.13 billion), spurred by record subscriber growth. Full-year net profit rose 14.9% to MXN60.1 billion. AM added 10.1 million subscribers over the three-month period, the most ever for the group in a single quarter, with the fall in value of the peso contributed to higher sales. Columbia, Brazil and Ecuador had the highest net subscriber additions, revealing 87%, 36% and 34% y-o-y increases respectively. The group reported a total of 182.7 million wireless customers worldwide at the end of the 2008, an increase of 29.3 million, or 19.1%, over the year.
Total revenue for the fourth quarter increased 11.6% year-on-year to MXN94.4 billion. Service revenue for the three-month period increased 14.7% to MXN80.4 billion, whilst revenue from data services contributed strongly to the growth, rising 37% year-on-year. Full-year revenue meanwhile increased 13.6% to MXN346 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) also rose, up 7.3% in the most recent quarter against 4Q 2007 at MXN34.9 billion, and up 11.8% for the twelve months ended 31 December 2008. CAPEX for 2008 reportedly exceeded MXN68 billion.
Uruguayan telco Antel has been invited by the Solidarity Fund of Ecuador to invest in Ecuadorian state-run cellco Telecsa (Alegro). Antel said in a statement that it wants to operate in Ecuador, where it already provides consultancy services. The company said that it would not take a majority equity stake in Telecsa, but its investment would be ‘significant’. Antel is also working as a consultancy in other Latin American countries including Venezuela, Cuba and Paraguay.
Three telecoms operators have expressed interest in becoming the strategic partner of Ecuadorian state-owned mobile operator Telecsa (Alegro PCS), according to BNamericas quoting local newspaper El Telegrafo. The three potential investors are Venezuelan state-owned cellco Movilnet, Uruguay’s government-run telco Antel and Indonesian operator Telkom. According to the reports, selection of the partner will be concluded in 60-90 days, and is expected to inject capital to boost the mobile operator’s business in Ecuador, where it is positioned third in the subscriber market behind Mexican-backed Conecel (Porta) and Spanish-owned Movistar. Ecuador’s President Rafael Correa threatened earlier this month that if Alegro did not turn a profit within twelve months, it would be sold. According to previous press reports, the firm has reported USD200 million in losses since its creation.
Bloomberg reports that Ecuador will sell state-owned mobile operator Telecsa (Alegro PCS) if losses at the company continue to mount up, President Rafael Correa said. The country’s third largest cellco by subscribers, which lost USD200 million last year, has twelve months to improve its results or it will be sold off to the private sector, Correa said during his regular Saturday radio and television address. ‘The lack of responsibility of some executives has to stop,’ the president warned, adding that ‘losses can’t continue indefinitely.’