Telefonica Says Committed to Ecuador

Spain’s Telefónica is going through some tough talks with Ecuador’s government to renew its concession, but it is hopeful of finding a solution. “We are committed to the future of the Ecuadorian telecoms sector,” a Telefónica spokesman tells LatinFinance. The telecom says it has spent about $1bn in Ecuador since setting up shop there in November 2004 and plans to spend more than €55m next year, up from an average annual €50m. However, president Rafael Correa claims that foreign firms are charging too much for poor service and he is pushing for a better deal. Telefónica claims to be improving its service and pricing and to be in better shape than other operators. “We feel we have a better position than our competitor América Móvil,” says the spokesman. He adds that Telefónica does not have the tax issues of its competitor. “We know it’s a difficult negotiation,” the spokesman adds of the talks with the government. He says that he does not know when negotiations will conclude.