Slim faces Ecuador ultimatum

Ecuadorian president, Rafael Correa, has warned of tough talks to be held with America Movil unit Porta Cellular, owned by Mexican magnate Carlos Slim.

Correa has warned that foreign mobile firms would face new regulation when their contracts are renegotiated and renewed at the end of this year.

Porta is also under the gun for allegedly failing to pay taxes going back five years. Correa has reportedly given the Slim-owned operator an ultimatum to pay up or get out of the country.

Ecuador is one of the fastest growing markets in the region, with a subscription base that reached 9.37 million at the end of July, according to telecoms supervisory body Suptel.

According to Suptel, Porta, lead the market with 6.32 million subscriptions followed by Telefonica unit, Movistar Ecuador with 2.64 million and locally owned Alegro PCS which had 412,802 subscriptions.