UPDATE 3-Ecuador opens way for America Movil to renew deal

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QUITO, May 5 (Reuters) - Ecuador opened the way for Mexico's America Movil (AMXL.MX) (AMX.N) to renew its contract after the mobile giant improved the deal terms, marking a victory for the leftist government in its drive to exert more control over foreign deals.

Telecommunications chief regulator Jaime Guerrero said the country will review the Mexican company's latest economic terms offered to renew its contract for another 15 years.

The review comes less than a week after Ecuador stripped America Movil of its operating concession for not matching the Andean country's proposed value of the concession.

"Their new offer is convenient for the state," Guerrero told reporters, adding that America Movil Chief Executive Daniel Hajj met President Rafael Correa in Quito to make the company's bid.

Guerrero did not say how much the firm offered for the concession.

Correa, a leftist who took office last year, has launched a campaign to increase state control over the economy. The former economy minister has pushed foreign oil and mining companies to improve the terms of their contracts.

Ecuador said it wanted America Movil to pay around $480 million for its operating concession, which is due to expire in August.

"Correa made a bluff and it seems he has reached a reasonable agreement with the company," said Ramiro Crespo, president of Analytica Securities, a Quito-based investment bank. "This is how Correa makes business."

Spain's Telefonica (TEF.MC) has already reached an agreement with Ecuador to renew its deal for 15 years.

America Movil and Telefonica are the two largest mobile operators in Latin America and have long fought for supremacy in the region.

Together, the companies control 95 percent of Ecuador's market of more than 10 million subscribers, though the country represents a small part of both their overall subscriber bases. (Reporting by Jose Llangari; editing by Leslie Adler & Ian Geoghegan)