BY CHRONICLE EDITORS
For years, foreign investors in
Last week, Ecuadorian President Rafael Correa told America Movil and Telefonica that they could either accept his new concession terms or leave. The new terms include an increase of the concession price from $52 million paid 15 years ago to $700 million and a reduction of the maximum prices the operators can charge from 50 cents to 22 percent.
"If they want to pay, great, and if they don't, well we wish them good luck,'' Correa said, according to Bloomberg.”We won't beg any company to stay in the country. We're asking a fair price for the country.''
Clearly, Mr. Correa - despite his doctorate in economics from
The new requirements could very well result in America Movil and Telefonica leaving
Certainly not the millions of Ecuadorians who have signed for wireless subscriptions in recent years. The number of wireless subscribers in
Certainly not the thousands of Ecuadorians employed directly and indirectly by the two telecom operators.
MORE STATE INEFFICIENCY?
And certainly not the government of
If there's one sector that requires private versus state ownership it's technology. It's a sector that is intensely dependent on constant innovation and investments - two ingredients state companies in Latin America are not known for.
The latest threats come after Correa has imposed tax hikes on foreign oil companies and other actions that are threatening foreign investment in
Amazingly enough, Correa taught economics at San Francisco de Quito, a prestigious private university in
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