GOVERNMENT POLICIES

Summary 

The Government of Ecuador has created a National Telecommunications Development Plan. In order to achieve the plan’s objectives and goals for the provision of fixed telecommunication services, the sector needs approximately USD $2.8 billion in new investments for 2000-2010.  Given the high probability that private companies will receive the concessions to provide fixed telecommunications services in the future, the bulk of the investment required is expected to come from the private sector. Therefore, the government is moving ahead with policy reform on many levels.

Vision

Ecuador’s telecommunications agency - Supertel - offers the government’s vision for the sector on its website (in Spanish). Supertel states that it will:

• Be the technical agency that controls telecommunications and bandwidth to promote effectiveness both in Ecuador and abroad;

• Support the development of the sector in order to provide high quality service and affordable prices;

• Consolidate as a reliable, proactive organization with a high standard of ethical and moral behavior.

There is really no mention of an IT “ideal” for the country in this vision statement. It is interesting to note that the last item in the vision relates to ethics - Ecuador has long been criticized for government corruption.

Reform Law

Until the 1990s, the telecommunications sector was labeled in the Constitution as a “strategic area”, and therefore only to be exploited and managed by governmental institutions. In August 1995, Congress approved the Special Telecommunications Reform Law establishing the transformation of the public company EMETEL into a stock company, EMETEL S.A, and allowing the further reorganization of the company into two operating companies, ANDINATEL S.A. and PACIFICTEL S.A.  The law gave the exclusive concession for the provision of fixed telephone services in particular regions to ANDINATEL, PACIFICTEL and ETAPA.

The telecommunications modernization process is scheduled to be completed in two phases.  The first is the sale of ANDINATEL's and PACIFICTEL's stock. This is yet to occur. The companies purchasing the stock of one or both entities is granted a 15 year concession contract to exploit the local, national and international telephone and connection services in the areas of ANDINATEL and PACIFICTEL's operations, including the renting of lines and circuits.  The contract includes a clause that allows the private companies to exploit all services exclusively under a regulated environment for a period of five years. When the exclusivity period is over, all fixed telecommunications services shall be exploited under a free market structure, allowing other private companies to enter the fixed telecommunications market (Source: Strategis).

WTO

Under the World Trade Organization Agreement on Basic Telecommunications Services, which was concluded on February 15, 1997, Ecuador committed to market access and national treatment for domestic cellular services by January 1, 1998. Ecudor has made no commitments on regulatory principles contained in the Reference Paper (Source: WTO).  

State Agencies

The Superintendency of Telecommunications, established by the law as an independent controlling body, is responsible for ensuring private sector compliance with all telecommunications regulations and contracts. In addition, the Telecommunications Secretariat (Senatel) was created. Senatel is in charge of carrying out the national telecommunications policies dictated by CONATEL, including the development of the national telecommunications plans.

The Municipal Telephone, Potable Water and Sewer Authority, ETAPA, is authorized to operate and exploit the fixed local, national, and international telephone services. ETAPA has no long distance infrastructure, therefore PACIFICTEL's transfer and transmission stations support all regional, national and international services provided by ETAPA.   

Ecuadorian Telecommunications Governance - Systems Diagram

CONATEL

CONATEL was created in August-1995 in the Official Register resulting from the Reformation Law-770 of the Telecommunications Special Act. CONATEL represents the state to exercise, administer and regulate telecommunication services in Ecuador. This group also acts as the representative to the UIT, la Union internacional de Telecomunicaciones. Generally, sessions meet once a month to discuss the following issues:

• To oversee implementation of telecommunication directives established by the State;

• Oversee the National Telecommunication Development Plan and National Frequencies Plan with respect to radio-electric spectrum;

• Supervise telecommunications tariffs, interconnection charges;

• Establish terms and conditions for the use of bandwidth, frequency and other telecom services by the public and private sector;

• Administer regulations for Internet connection and utilization.

CONARTEL

The Radio-diffusion and Television Act created this organization in the official Register in May-1995. CONARTEL is an autonomous organization that includes the following members: Delegation of the President; Minister of Education and Culture; Delegation of the Commanding Armies, Superintendent of Telecommunications; President of the Ecuadorian Association of Radio and Television (AER) and President of the Association of Television Channels of Ecuador (ACTVE). The principle duties of CONARTEL are listed below:

• Administer the National Plan of Frequency Distribution for Radio-diffusion and Television, along with its reforms;

• Authorize the concession of channels and frequencies for radio-diffusion and television;

• Trouble shoot and resolves any disputes resulting from the distribution and concession of channels and frequencies;

• Regulate and control the types of programming to be distributed across the channels, promoting cultural, educational and artistic content;

• Determine the procedures and policies for observing the relationship between the Superintendent and other national and international organizations.

SUPTEL

In article 222 of the constitution of the Republic of Ecuador states that the superintendent has administrative, economic, financial autonomy over the public, control public and private institutions and promote general well being of the public. The Telecommunications Act established in August-1992, has granted SUPTEL autonomy over the telecommunication policies of the entire country. Under the Reformation Law of the Telecommunications Act, the Superintendent performs the following duties:

• Control and monitor the radio electric spectrum;

• Control the activities of the telecommunication services operators;

• Monitor the application of tariffs as delegated by CONATEL;

• Administer policies to ensure a free and open market;

Under the Reformation law of the Radio-diffusion and Television Act, the Superintendent performs the following duties:

• Administer and control the radio electric spectrum bands destination for radio-diffusion and television;

• Regulate the administrative and technical television and radio-diffusion stations;

• Maintain relationships with national and international organizations as stipulated by CONARTEL;

• Execute the directives of CONARTEL.

These and other government agencies all work together with the private sector to facilitate IT growth and Internet development.

This report was completed in December 2000 for the class Impacts of National Information Technology Environments on Business given by Professor Erran Carmel in the program of Management of Global Information Technology at the Kogod School of Business in Washington DC