Poor may get Mobile Phones in Ecuador
Ecuador has thought for the poor people in their country. However, ironically they haven’t thought of providing basic necessities such as food, clothing, shelter and education, but rather plan to offer mobile phones. Probably, the government took this innovative decision for the poor so that they can communicate with hospitals, police stations and other important public sector organizations.
Ecuador, a representative democratic republic in South America, has got in touch with foreign mobile firms to discuss new agreement, which would impose penalties over operational errors and push companies.
Jaime Guerrero, the head of Ecuador’s telecommunications secretary said, “We are putting emphasis on sanctions… and that companies should comply with their taxes.” A government official maintained that the penalties were imposed to create a fund that would provide mobile device services to the poor masses.
President Rafael Correa wanted to rework on contracts with mobile firms to raise the state participation, improve service and lower rates. He also mentioned that companies who do not agree with the new agreement and regulations, can go ahead and leave the country.
He continued that the companies can also donate one percent of their revenues to generate funds for the same and declined giving more details on their economic measures.
Porta, a unit of Mexico’s America Movil (AMXL.MX) (AMX.N), and Movistar, owned by Telefonica (TEF.MC), control 96 percent of the Andean country’s market and are in talks with the government to extend their concessions for 15 years.
Warnings were issued by Jaime stating that authorities will continue to probe Porta over service errors, which can lead to the termination of its contract. Earlier this month, Ecuador threatened Porta to end their contract if Porta fails to fix a series of services failures by December.
Jaime Guerrero also asked the court to pay no attention to any legal actions taken by Porta to annual the government’s demand. Porta, Ecuador’s largest mobile firm with more than 6 million clients has sought negotiation from a local chamber of commerce to block any decision over its contract.
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