Ecuador orders America Movil unit to pay $27 mln

Wed Feb 6, 2008 2:59pm EST
 
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QUITO, Feb 6 (Reuters) - Ecuador's telecommunications regulator said on Wednesday mobile service provider Porta, owned by Mexico's America Movil (AMXL.MX), has to repay clients $27 million for overcharging them in 1990s.

The watchdog, Suptel, said in a statement that Porta must pay, or it will seek legal action to charge the amount.

Suptel said Porta, the country's largest mobile provider, in the 1990s had illegally charged clients for entire minutes even if the consumer only used a few seconds in a call.

"The compensation that the company has made is independent from this order," Suptel's chief Paul Rojas told reporters.

A Porta spokesman was not immediately available to comment.

In January, Ecuador said it will keep its contract with Porta after it had threatened to end the deal last year over a series of operational failures.

America Movil's unit in Ecuador represents about 4.6 percent of its total cellphone clients and 3.2 percent of sales.

President Rafael Correa wants to rework contracts with mobile firms to raise state participation, improve service and lower rates. He has warned that if companies do not comply with the new regulations they can leave the country.

Porta and Movistar, owned by Telefonica (TEF.MC), control 96 percent of the Andean country's mobile market and are in talks with the government to extend their concessions for 15 years.

(Reporting by Alonso Soto; editing by Gunna Dickson )

 
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