QUITO, April 29 (Reuters) - Ecuador stripped America Movil (AMXL.MX: Quote, Profile, Research) of a major operating concession on Tuesday, rejecting the Mexican mobile telecom giant's terms for renewing its contract as the leftist government tightens control over the economy.

It's important that we note the difference beteen AMXL's situation and ours. In their case, the concessions were up for renewal and subject to renegotiation, so everything is legal as far as it goes. Whether it's fair or not is another issue, but the law at least appears to have been followed.

That's not our situation IMO. Concessions in good standing have been revoked along with those in arrears. This is contrary to the laws of Ecuador as I read them, not to mention international norms. It also abrogates a prior agreement where concessions were reviewed and found satisfactory.

I have no desire to go down the rabbithole of Ecuadorean litigation, nor do the companies involved I'd imagine. IMO, we will reach some kind of resolution without having to go that route. For the time being we just have to wait and see what unfolds. The mood in the country is turning in our favor as I read it. Prudence is probably the best course here. There are some players who haven't completely weighed in yet.

ebear