The recent decision by Ecuador's Telecommunications Regulatory Agency (Arcotel) to revoke the operating license of Cable Andino raises significant concerns about internet connectivity in the country. Legal expert Christian Espinosa warns that this move could jeopardize the services provided by key internet operators, affecting both users and businesses.
On November 18, Arcotel declared that Cable Andino, which operates a crucial submarine cable for data transmission, had failed to comply with various regulations. Although Arcotel has mandated that services continue during the asset reversion process, which may take up to a year, there are fears about how this transition will be managed.
Espinosa highlighted that Cable Andino holds a market share of 15.38%, with its services relied upon by major providers like Netlife and Xtrim. The potential fallout from its exit could lead to network congestion for other operators, such as Telxius and the National Telecommunications Corporation (CNT).
Moreover, Espinosa pointed out that the public questioning of Telconet’s ability to manage this infrastructure amplifies the technical and operational uncertainties surrounding this situation. Any disruption in connectivity could have economic repercussions, particularly for vital sectors like banking and digital services, undermining the country's competitiveness.
In this context, it is imperative for Arcotel and involved stakeholders to ensure a smooth and transparent technical transition to prevent adverse impacts on internet services, which are essential for the Ecuadorian economy and society.