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Americas Perspective Vol. 7, Issue 7Product Type: Market Research ReportPublished by: Pyramid Research Published: April 2007 Product Code: R8-556 Description Telmex purchased Ecuador Telecom (Ecutel) from Ecuadorian holdings company, Emerica Group, for an undisclosed sum. Ecutel is a small broadband wireless provider with 600 local lines and 5,000 corporate clients as of 4Q2006. The company operates a broadband wireless network in Guayaquil and Quito. In July 2002, Conatel awarded a Wireless Local Loop (WLL) license to Ecuador Telecom for US$2.1m. Ecutel, which spent US$1.5m on equipment, was not able to meet its investment goals or reach interconnection agreements with state-owned enterprises, Andinatel and Pacifictel, due in large part to constant changes in leadership. Facing stagnant top-line growth at home, Telmex will maintain its regional strategy and continue to make acquisitions throughout Latin America.Table of Contents Following several acquisitions in the region’s larger markets, Telmex enters the Ecuadorian market through the purchase of wireless broadband operator, Ecuador Telecom (Ecutel), a national voice telephony, Internet, and data transmission services company.In Ecuador, Telmex will likely replicate the strategy it has used in Chile and Peru by using WiMAX as a cost-effective last-mile technology to increase Internet penetration in an attractive SME segment and go after the residential segment with a cable operator. Telmex will also likely look for additional opportunities in Ecuador that align with the company’s strategy of addressing the residential segment, with the possible acquisition of a cable company. |
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