Ecuador tells America Movil to improve mobile offer

QUITO, April 10 (Reuters) - Ecuador on Thursday rejected an offer from Mexico's America Movil (AMXL.MX) to renew its mobile concession and gave the company 10 days to improve its proposal or lose its concession.

"Yes, their offer was rejected," Jaime Guerrero, the country's chief regulator, told Reuters.

America Movil's unit Porta, the Andean country's largest mobile provider, is renegotiating its contract with the state to extend its concession for 15 years. The concession is due to expire in the second half of this year.

Ecuadorean President Rafael Correa has warned mobile firms to comply with the country's demands for more state participation in their contracts or leave the country. Correa says he wants companies to improve their services and cut rates.

America Movil and Spain's Telefonica (TEF.MC) control 95 percent of the country's market of more than 10 million subscribers, although Ecuador represents a small part of both their overall subscriber bases.

Telefonica is close to renewing its deal after it accepted the government's price tag on a new concession last week.

Ecuador wants both companies to pay a combined $700 million to renew concessions. (Reporting by Alexandra Valencia; writing by Alonso Soto; Editing by Alan Raybould)