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Last Words
Ecuador official punishes mobile firms for service
by Reuters
07/01/2003
QUITO, Ecuador - An Ecuadorean official on Tuesday said he had ordered mobile phone operators BellSouth and Porta to suspend new line sales and pay clients back for poor services in December.
The two firms have faced a wave of criticism since last month when Christmas traffic, on top of an already-booming market, made it tough for customers to make and receive calls.
BellSouth and Porta have promised to expand their networks to meet rising demand from a total of 1.5 million customers --up from just 383,185 in 1999 and offer their clients compensation for the poor services.
But Victor Hugo Olmedo, a provincial authority for Quito and its surrounding areas, on Tuesday ordered the two firms to pay back customers for calls made in December and give credit for any calls that could not be connected.
He ordered BellSouth to suspend its new line sales indefinitely and Porta for eight days starting Dec. 31, based on a law to protect Ecuadorean consumers. The companies have three days to appeal the ruling.
BellSouth rejected Olmedo's position in a statement and questioned whether he had the authority to impose sanctions. BellSouth, which had already suspended sales to appease angry clients, also said demanding a December rebate was illegal.
A Porta spokesperson was not immediately available for comment.
The weak service enforced the government's argument that the Andean nation needs a third mobile operator. Telecom regulator Conatel will announce this week a date to complete the concession of a 15-year mobile license.
The original article appeared at Reuters
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