Re: Google News - Ecuador
in response to
by
posted on
Feb 20, 2008 03:18PM
The company whose shareholders were better than its management
I have entered below the key to the Latin Business Chronicle article. The concessions expire in the fall and they are up for renegotiation. For fifteen years they ( Movil and Telefonica) have operated at the old terms ...these terms expire in the fall and it's time to pay the piper.
I'm sure both companies when they set up their businesses, they figured on amortizing their capital costs over the term of the concession or to the fall of this year. Renegotiations can be a son-of -bitch and concessionaires are at the mercy of the country. Payback is a bitch!!
In 2006 the tel companies had 8.5 million customers at say $20/month equals.. $ 170,000,000 a month...@$10= 85mill...not bad return.....
Somehow I don't feel too sorry for the telephone companies....!!
"The new requirements could very well result in America Movil and Telefonica leaving Ecuador WHEN THEIR CONCESSION ENDS IN THE FALL. And who would gain from that?"