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ECUADOR

Since 2015

Pillar Telecom infrastructure and competition  |  Sub-pillar Presence of independent telecom authority
Presence of independent telecom authority
It is reported that the "Agencia de Regulación y Control de las Telecomunicaciones" (ARCOTEL), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.
Coverage Telecommunications sector

ECUADOR

Since February 2015
Since November 2019

Pillar Telecom infrastructure and competition  |  Sub-pillar Other restrictions to operate in the telecom market
Organic Law on Telecommunications (Ley Orgánica de Telecomunicaciones)

Telecommunications and Frequencies Enabling Titles Regulation (Reglamento Títulos Habilitantes de Telecomunicaciones y Frecuencias)
Art. 40 of the Organic Telecommunications Law provides that for the granting and renewal of licenses for the provision of telecom services, the Agency on Telecommunication Regulation and Control (Agencia de Regulación y Control de las Telecomunicaciones, ARCOTEL) will consider the need to address: technological development, market evolution, the National Telecommunications Plan, the needs for the sustained development of the sector and of the State and universal access to information and communication technologies, as well as the effective satisfaction of the public or general interest.
Art. 40 also establishes that in the case of applications for the granting of new licenses, it must be evaluated whether any company or group of companies related to the applicant of the license provides the same service or similar services and the effects that the granting of the new license required could have on the market. For this purpose, a sworn statement must be submitted. In this regard, Art. 24 of the Telecommunications and Frequencies Enabling Titles Regulation provides that no license for the rendering of telecommunications services shall be granted to natural or juridical persons that have a valid license for the rendering of the same service of the general telecommunications regime, without prejudice to the application of the criteria set forth in Art. 40 of the Organic Law of Telecommunications.
Coverage Telecommunications sector

ECUADOR

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Signature of the WTO Telecom Reference Paper
Lack of appendment of WTO Telecom Reference Paper to schedule of commitments
Ecuador has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

ECUADOR

Reported in 2021

Pillar Telecom infrastructure and competition  |  Sub-pillar Other restrictions to operate in the telecom market
Complaint on lack of transparency in telecom sector
It is reported that in Ecuador a number of telecommunication service providers in rural areas offer internet access services without a license or use licenses that are not suitable for such activity. This includes service providers offering internet services using enabling titles for the provision of different services, e.g. fixed telephony, wireless access, private radio, etc. This reportedly provides an unfair advantage to these providers as they are neither subject to the payment of taxes, nor to the payment of spectrum and concession fees.
Coverage Telecommunications sector

ECUADOR

Since February 2015

Pillar Telecom infrastructure and competition  |  Sub-pillar Other restrictions to operate in the telecom market
Organic Law on Telecommunications (Ley Orgánica de Telecomunicaciones)
Art. 34 of Ecuador’s Organic Telecommunications Law requires telecommunications suppliers with at least a 30% market share to pay 0.5% of their gross revenue to the government and an additional 1% of their gross revenue for each additional 5% market share they hold above 30%. However, Corporación Nacional de Telecomunicaciones (CNT), which is owned by the government, is not included in the calculation of market share and is exempt from the fees.
CNT is the dominant provider of fixed telecommunications services and is the second largest supplier of subscription television services. In addition to the fee exemption, the government of Ecuador maintains policies that favor CNT over other competitors, including exemptions from paying certain license taxes and fees.
Coverage Telecommunications sector

ECUADOR

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
It is reported that Ecuador does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, it is reported that there is an obligation of accounting separation.
Coverage Telecommunications sector

ECUADOR

Since October 2008, last amended in July 2011
Since February 2015

Pillar Telecom infrastructure and competition  |  Sub-pillar Maximum foreign equity share for investment in the telecommunication sector
Constitution of the Republic of Ecuador 2008 (Constitución de la República del Ecuador 2008)

Organic Law on Telecommunications (Ley Orgánica de Telecomunicaciones)
According to Art. 313 of the Constitution of the Republic of Ecuador 2008, the State reserves the right to administer, regulate, control, and manage strategic sectors, including telecommunications. Furthermore, according to Arts. 316 of the Constitution of the State and 14. of the Organic Law on Telecommunications, public telecommunications services are provided directly by the State, through public telecommunications companies, or indirectly through delegation to mixed economy companies in which it has a majority shareholding.
Coverage Telecommunications sector

ECUADOR

Since January 2010

Pillar Telecom infrastructure and competition  |  Sub-pillar Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in telecom companies
The Corporación Nacional de Telecomunicaciones (National Corporation of Telecommunications) is the dominant provider of fixed telecommunication services, and is fully owned by the Ecuadorian Government. It was created by Executive Decree No. 218, which specifically establishes that the Ministry of Telecommunications and the Information Society, representing the State, is the sole shareholder.

La Empresa Pública Municipal de Telecomunicaciones, Agua Potable, Alcantarillado y Saneamiento de Cuenca (Etapa EP, Municipal Public Company of Telecommunications, Drinking Water, Sewage and Sanitation of Cuenca), created by a January 2010 ordinance, is another case in which the telecom operator is a state-owned enterprise. Initially created in February 1948, as Empresa Municipal de Electricidad, Agua Potable y Teléfonos (EMLAT), ETAPA EP provides municipal internet and fixed, wireless and public telephone services.
Coverage Telecommunications sector

ECUADOR

Since December 2016
Since June 2017
Since December 2006, last amended in February 2014

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Effective protection covering trade secrets
Organic Code on Social Economy of Knowledge, Creativity, and Innovation (Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación)

Social Economy of Knowledge Organic Code Regulation (Reglamento Código Orgánico Economía Social de los Conocimientos)

Intellectual Property Law (Ley de Propiedad Intelectual)
Chapter VII of the Intellectual Property Law protects undisclosed information related to trade secrets, industrial secrets, or any other type of confidential information against unauthorized acquisition, use or disclosure by the holder. Moreover, Art. 545 of Organic Code on Social Economy of Knowledge, Creativity and Innovation mentions the concept of trade secret and the Art. 40 of Social Economy of Knowledge Organic Code Regulation also mentions the concept of "Undisclosed Information".
Coverage Horizontal

ECUADOR

Since February 2015
Since September 2017

Pillar Telecom infrastructure and competition  |  Sub-pillar Passive infrastructure sharing obligation
Organic Telecommunications Law (Ley Orgánica de Telecomunicaciones)

Technical Standard for Shared Use of Physical Infrastructure of the General Telecommunications Regime Services (Norma Técnica para Uso Compartido de Infraestructura Física de los Servicios del Régimen General de Telecomunicaciones)
There is an obligation for passive infrastructure sharing in Ecuador to deliver telecom services to end users. It is practiced in the mobile sector and in the fixed sector. The Organic Telecommunications Law and complementary technical regulations are the theoretical frameworks for passive infrastructure sharing in Ecuador. According to Art. 3 of the Technical Standard for Shared Use of Physical Infrastructure of the General Telecommunications Regime Services, services providers related to the telecommunications sector have the obligation to share their physical infrastructure.
Coverage Telecommunications sector

ECUADOR

Since May 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
Ecuador has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

ECUADOR

Reported in 2012, last reported in 2022

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in Ecuador. It is reported that the enforcement of intellectual property rights (IPR) against widespread piracy in Ecuador remains weak, including online. Moreover, there are concerns related to overly broad or vaguely defined copyright exceptions and limitations. In addition, it is reported that the rate of unlicensed software installation in the country was 68% in 2017 (above the 52% rate of the Latin American countries) for an estimated commercial value of USD 132 million.
Coverage Horizontal

ECUADOR

Since March 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Copyright Treaty
WIPO Copyright Treaty
Ecuador has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

ECUADOR

Since December 2016
Since December 1993

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Organic Code on Social Economy of Knowledge, Creativity, and Innovation (Código Orgánico de la Economía Social de los Conocimientos, Creatividad e Innovación)

Andean Decision No. 351 Common Regime on Copyright and Related Rights (Decisión Andina No. 351. Régimen Común sobre Derecho de Autor y Derechos Conexos)
Ecuador has a clear regime of exceptions to copyright that follows fair use, which allows the lawful use of copyrighted works by third parties without the need to obtain permission. Art. 211 of the Organic Code of the Social Economy of Knowledge, Creativity and Innovation follows the fair use model for copyright exceptions, and establishes five factors for the determination of fair use:
- The purposes and nature of the use;
- The nature of the work;
- The amount and importance of the part used in relation to the copyrighted work as a whole;
- The impact of the use on the current and potential market value of the work; and
- The possession and effective exercise of other fundamental rights.
In addition, Ecuador is a member of the Andean Community of Nations, and is subject to Decision 351 issued in 1993. Art. 22 of the Decision establishes a list of mandatory exceptions in the domestic market, but also allows the adoption of additional exceptions in the domestic law of the members, as long as they comply with the international standards of the so-called three-step test.
Coverage Horizontal

ECUADOR

Since May 2001

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty (PCT)
Ecuador is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal