Ecuador - 3 Services and Supply
Ecuador has a variety of supply service industries for different sectors, such as: transportation services, handling companies, warehousing (private and government), oil and gas industry, telecommunications with a large national industries (food), agricultural suppliers and qualified manual labors. Some areas are supported and/or regulated by the government. There is existing commercial capacity for renting warehouse space. In case of emergencies, warehouse space could be arranged with support of local authorities or provinces. There is limited availability for the purchase of equipment such as tents, water pumps, pipes, and water tanks. Regarding items such as IT equipment and office furniture, there are plenty of suppliers with a broad variety of goods and quality service support.
The country has significant private transport capacities. Transport providers supply through daily rental or per MT rates 40’, 10-20’ trucks (containers and or flatbeds) and package delivery companies which distribute items throughout the territory. The country can be travelled through main roads that are well developed.
Consumer Price Index CPI
The annual variation rate of the CPI in Ecuador in May of 2021 was -1.1%, The monthly variation rate of the CPI (Consumer Price Index) has been 0.1%, and thus the accumulated inflation in 2021 is 0.8%.
Source: https://countryeconomy.com/countries-cpi/ecuador
The macro plan view
The 2018-2021 country strategy prioritizes accelerating the growth of the economy in order to consolidate and deepen the social progress achieved since the turn of the century. To this end, the Bank supports the government in its effort to overcome the macroeconomic imbalances that currently affect the country, move towards a growth model in which the private initiative acquires a greater role, and mitigate the adverse impacts that this process could have on the most vulnerable groups. This strategic approach was supported by three pillars: the strengthening of public finances; the promotion of productivity and the development of the private sector as engines of growth; the deepening of the social advances of the last decade.
Areas of investment as per listed in importance:
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Energy
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Social investments
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State reform and government renewal
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Water and sanitation
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Financial markets
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Transport
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Urban housing development
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Health
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Trading and commerce
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Environment and natural disasters
Electricity
In 2020, hydroelectricity accounted for 58% of the country's electricity generation. The other primary source of electricity supply is oil-powered conventional thermal power plants. However, Ecuador is also undergoing significant change in the energy sector. The country is moving from a heavy reliance on fossil fuels to nearly complete self-sufficiency through renewable energies – particularly hydroelectric power. The country is also improving its energy transference infrastructure to allow massive loads to be arrived more efficiently at high-voltage.
Oil Gas and Energy
Ecuador has the third-largest oil reserves in South America. Its hydrocarbon resources are exclusively owned by the state, and state-owned oil companies account for most of the production. Ecuador's energy mix is dominated by oil, although its challenging investment environment and lack of domestic refining capacity limit oil revenues. Ecuador has relatively small proved natural gas reserves and a limited natural gas market. Ecuador limits foreign investment in the oil sector. Foreign oil and natural gas companies are allowed to enter into service contracts that offer a fixed per-barrel fee for their exploration and production activities. The move away from production-sharing agreements to service contracts has increased the government's share of revenue and state oil production.
Water and Sanitation
In general, water service quality is low in Ecuador. Water supply services are interrupted in 50% of the urban areas. Water pressure is well below standard, particularly in poor outlying areas. In 30% of the urban areas, there is no treatment of drinking water. 92% of wastewater is discharged without any kind of treatment. Potable water supply efficiency is usually measured through labour productivity and the level of unaccounted-for water (water that has been produced and is "lost" before it reaches the customer). Drinking water supply and sanitation in Ecuador is characterized by a number of achievements and challenges.
Ecuador - 3.1 Fuel
Fuel Overview
Ecuador exports heavy refined products, such as fuel oil, and imports lighter products, such as gasoline, diesel, and liquefied petroleum gas (LPG). It has the third-largest oil reserves in South America. Its hydrocarbon resources are exclusively owned by the state, and state-owned oil companies account for most of the production. Ecuador's energy mix is dominated by oil, although its challenging investment environment and lack of domestic refining capacity limit oil revenues. Ecuador has relatively small proved natural gas reserves and a limited natural gas market. Ecuador limits foreign investment in the oil sector. Foreign oil and natural gas companies are allowed to enter into service contracts that offer a fixed per-barrel fee for their exploration and production activities. The move away from production-sharing agreements to service contracts has increased the government's share of revenue and state oil production.
There are three operative refineries: Esmeraldas, with the capacity to refine 110,000 barrels of oil per day, La Libertad, with a capacity of 45,000 and Amazonas (Shushufindi) with 20,000 barrels per day. The GoE decided to concession* the operation and administration of its three refineries, and the merger between state oil companies Petroecuador and Petroamazonas in year 2020. The decision is mainly due to the relatively high costs of refining crude oil, which is considered heavy, financial circumstances by the state and the expectation of producing gasoline at the Euro 4 standard.
So far the demand for natural gas in relation to the total energy demand in Ecuador is very low, which is why there are opportunities for the country to increase the use of this energy, taking advantage of its versatility, relative low pollution and favorable world production situation that has reduced prices internationally. Natural gas prices in the world market have been falling consistently in recent years, from $ 5.24 in 2009 to $ 1.63 in 2019, a drop of 69%, mainly caused by the growth in supply thanks to the development of projects in the shale fields and the availability and variation of prices in the main petroleum derivatives. At this juncture, the country could take advantage of these conditions to evaluate the relevance of replacing processes that use fossil fuels such as diesel, gasoline or liquefied petroleum gas (LPG), for a more abundant, cleaner and cheaper fuel. Among the main fields of opportunity for the use of natural gas are electricity generation, residential cooking and industrial heating processes, which could be scaled up through investment in transportation infrastructure and natural gas storage.
Source: https://www.petroenergia.info/ Fuel consumption in Ecuador in 2019
A case study in the application of natural gas is that of the transportation sector. In Ecuador, transportation is the sector that consumes the most energy (49.2% of the total), as well as the one that generates the most greenhouse gas emissions, with 50% of total emissions. Multiple projects seek to increase the efficiency of this sector, with measures that range from the implementation of new technologies to the generation of driving habits and generation of efficient routes. The implementation of natural gas in transportation, mainly heavy, has advantages such as the reduction in environmental pollution, particularly sensitive in large cities, lower cost and the generation of business opportunities for the participants of a technology in the mass adoption stage.
(*) Termogas Machala, natural gas LNG . Likewise, The Termogas Machala Thermoelectric Plant with its 252 MW installed power capacity is in the process of being concessioned to foreign consortia. The awarded concessionaire is expected to be able to produce from US$ 0.112 per kilowatt hour to US$ 0.116 per kilowatt hour.
For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List.
Fuel Pricing
Official pricing apply in determined period of time, it may vary without notice. Please refer to https://www.eppetroecuador.ec/ chart below.
Prices expressed in US dollars, per US Gallons.
Conversion: One (01) US gallon = 3.78541litres
LPG, Diesel, Gasoline
The terminal sale price for LPG products for commercial and industrial use, Diesel 2, Premium Diesel, Gasolines, Industrial Solvents, Reduced Crude Oil (Waste), Fuel Oil No. 4 and Fuel Oil No. 6, for the industrial sector, will be determined on a monthly basis by EP Petroecuador, based on the weighted average cost plus the costs of transportation, storage, marketing, a margin that may be defined by the indicated public company and the taxes that may be applicable.
Jet A1, AvGas
The sale price of the Jet Fuel at the terminal will be calculated monthly by the EP PETROECUADOR, based on the weighted average cost plus transportation costs, storage, commercialization, a margin that may be defined by the indicated public company and applicable taxes. In case of not having the import price of the Jet Fuel, it will be calculated based on the score international used for this product, plus freight, insurance and other costs that may have caused the import. The sale price indicated on the paragraph will be compared with the prices of sale to the final consumer at international airports in border countries, defined by EP PETROECUADOR, and the highest price will be set. The natural or legal persons that operate inside and outside the Ecuadorian territory, who have aircraft built since 1990, that have their Air Operator Certificate current and provide air transport service for national and international passengers and / or cargo from Ecuador, will pay the sale price at the terminal minus 40%, provided that when operating on routes that include airports that are under the administration of the General Directorate of Civil Aviation and the airports delegated to the Authority Municipal, which have not been concessioned, except for the route to the Galapagos Islands and the supply by technical shutdowns. Similarly, national natural or legal persons and foreign companies that provide the international air transport service of passengers, mail and cargo in a combined form, which start operations to or from Ecuadorian territory on international routes that include any of the country's airports, will pay the terminal sale price minus 40%, for a term of three (3) years, counted from the beginning of their operations, as long as they meet with each of the following conditions:
- They operate an aircraft built after year 1990;
- Satisfy the established technical requirements
- Be the first to provide the international air transport service for passengers, mail or combined cargo on one or more international routes, prioritized by the Sector Council of the production,
- They must operate on the authorized international route (direct without stops) at least three (3) flights per week (round trip).
In no case will the Jet A1 Fuel terminal price be less than US $ 1.25 per gallon.
The sale price at the Avgas terminal for aircraft with international registration or registration national for private use, will be calculated monthly by EP Petroecuador, based on the cost weighted average plus transportation, storage, marketing costs, a margin which may define the indicated public company and the applicable taxes.
Seasonal Variations
There are no significant seasonal variations that impact fuel refining capacity.
Government Pricing Variations
Until the 10th of each month, EP Petroecuador carries out the calculations based on the fuel supplier's costs and the sales prices of the previous month, so that, from 00:00 on the 11th, the new prices are reflected of fuels in each of the public and private service stations nationwide.
These government regulations allow controlling the price of oil derivatives so that the rise or fall in prices is neither greater nor less than 5% compared to the price of the previous month. This system protects consumers in relation to drastic increases in the price of a barrel of benchmark West Texas Intermediate (WTI) crude. Furthermore notice that fuel prices at the terminal and / or deposits at the supplier level and the sale prices to level of Marketer and Distributors, is calculated monthly by each actor of the fuel trade chain considering the East crude markers and WTI, according to appropriate, and applicable taxes.
Therefor the terminal sale price for LPG products for commercial and industrial use, Diesel 2, Premium Diesel, Gasolines, Industrial Solvents, Reduced Crude Oil (Waste), Fuel Oil No. 4 and Fuel Oil No. 6, for the industrial sector, will be determined on a monthly basis by EP Petroecuador, based on the weighted average cost plus the costs of transportation, storage, marketing, a margin that may be defined by the indicated public company and the taxes that may be applicable.
| Seasonal Variations | |
|---|---|
| Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?) | No |
| Is there a rationing system? | No |
| Is fuel to lower income / vulnerable groups subsidized? | No |
| Can the local industry expand fuel supply to meet humanitarian needs? | Yes |
| Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs? | Yes |
Fuel Transportation
Oleducto de Crudos Pesados (OCP) is 485 km in length and runs from Sucumbíos Province to the Maritime Terminal at Esmeraldas Pronvince with a capacity of 450,000-bbl/d OCP OF which 95% runs underground. The OCP is a private initiative.
Sistema Oleducto Trans-Ecuatoriano (SOTE), is 503 km in length. It has a capacity of 400,000-bbl/d and runs from Lago Agrio to the Balao oil export terminal on the Pacific coast.
Standards, Quality and Testing
The Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources (ARC) regulates, controls, audits and audits the activities of non-renewable energy and natural resources of Ecuador
In Ecuador, the extra gasoline has 87 octanes and the super has 92. A government program is being developed in order to increase the quality of fuels in the country's refineries to allow compliance with European standards.
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Industry Control Measures |
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|---|---|
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Do tanks have adequate protection against water mixing with the fuel? |
Yes |
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Are there filters in the system which monitor where fuel is loaded into aircraft? |
Yes |
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Is there adequate epoxy coating of tanks on trucks? |
Yes |
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Is there a presence of suitable firefighting equipment? |
Yes |
The Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources (ARC) completed on July 1, 2021, one year of institutional life. During this period, with the work of 787 technicians and officials throughout the country, he met important milestones in his management in the strategic sectors: electricity, mining and hydrocarbon. It is important to mention the relevant activities performed in this first year. The ARC made revisions to the regulations, in coordination with the Ecuadorian Standardization Institute (INEN), for petroleum products: gasoline, diesel; Regulations for the commercialization of Liquefied Petroleum Gas (LPG) and liquid hydrocarbon fuels were reformed; of feasibility for distribution centers; commercialization of natural gas; storage in tanks; and, instructions for domestic amounts, industrial cadaster, etc. The attributions granted to the Agency regarding the monthly setting of fuel prices, and their consequent control throughout the national territory, were assumed in a technical way.
Despite the pandemic, the ARC worked in a coordinated and continuous manner in the issuance of authorizations for the use of fuels in domestic amounts and in the industrial registry. More than 2,000 annual controls and more than 10,000 regular inspections of LPG warehouses and collection centers were carried out. Quality control of hydrocarbon derivatives was continuously maintained through the analysis of 19,345 fuel samples in the Hydrocarbon Quality Control Unit.
Note: The ARC has been created on July 1, 2020 and arose from the merger of the Hydrocarbon, Mining and Electricity Regulation and Control Agencies, this entity regulates, controls, audits and audits the activities of non-renewable energy and natural resources of Ecuador
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Standards Authority |
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Is there a national or regional standards authority? |
Yes |
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If yes, please identify the appropriate national and/or regional authority. |
National: Instituto Ecuatoriano de Normalización https://www.normalizacion.gob.ec/ National: The Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources (ARC) https://www.controlrecursosyenergia.gob.ec/ |
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If yes, are the standards adequate/properly enforced? |
Yes |
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Testing Laboratories |
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|---|---|
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Are there national testing laboratories? |
Yes |
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Fuel Quality Testing Laboratory |
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|---|---|
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Company |
Government: The Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources (ARC) Agencia de Regulación y Control de Energía y Recursos Naturales no Renovables |
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Name |
Tests and authorized personnel from test laboratories qualified by the technical coordination of hydrocarbon regulation and control are selected and appointed by the ARC Adjunto-2-Ensayos-y-personal-autorizado-de-Laboratorios-de-ensayos-ARC (5) |
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Address |
Vía a Quito Km 2.5, Lago Agrio - Sucumbios |
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Telephone and Fax |
N/A |
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Contact |
For Inspection Bodies-Qualified Mining and Hydrocarbon Laboratories Please refer to government authorized testing companies Adjunto-2-Ensayos-y-personal-autorizado-de-Laboratorios-de-ensayos-ARC (5) |
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Standards Used |
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Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
Ecuador - 3.2 Transporters
In Ecuador 85% of the total cargo is mobilized by road, and to deliver this service, according to the statistics of the information system in 2020, the existence of active commercial vehicles: trucks, tractors truck and dump truck was 250,000 units concentrated in 5,000 transport companies approximately*, being the truck 2-axis and 3-axle truck tract the most used. From the total of these vehicles, about 70%, provides contractor service, 26% particular dedicated, 2% official and “other” percentages.
1,500 of these companies are allegedly fictitious or ‘paper companies’ which interact and may distort the country freight pricing market **.
There are two key transporters federations: the National Federation of Heavy Transport of Ecuador, FENATRAPE, a union institution, and the National Federation of Mixed and Medium Light Transportation of Ecuador (FENACOTRALI).
The business model of transport companies in Ecuador is mostly based on smallholders vehicles, means not having own fleet. This is a poor model that generates economies of scale and the level of service is affected because there is no direct reporting relationship between the carrier and driver. This model basically involves three actors; customer (shipper), the transport company and the vehicle owner. In this business, the customer hires the transport company, which, in turns, subcontracts the service to a vehicle owner. There are also some large companies which have their own fleet and have a direct reporting relationship with drivers.
The transports sector faces several problems such as: Infrastructure; limited and poor road network with low capacity, this deficiency generates high logistics costs. Modernization: old vehicles, the lack of clear policies by the national government in terms of renewal and scrapping the oldest fleet; The average age of vehicles on Ecuadorian roads is 23 years and 43% have more than twenty years.
In fact, FENATRAPE is focused among its major challenges in theirs Scrap Renewal Plan; modernization and digitization, simplification of administrative procedures for qualifying titles in government traffic entities such as the Ministerio de Transportes y Obras Públicas (MTOP), among others. Likewise the union expects that, with the reduction of tariffs, taxes and fees, as well as with strategic alliances, massive purchases of products and supplies will be generated to achieve more competitive costs. It is also waiting for the Government to modify some issues in public procurement to support heavy transport, but innovation and digital transformation will continue being the top aim of the sector. This year 2021 the companies have the great mission of modernizing their processes, training and strengthening strategic alliances with the industrial and commercial sector focused on efficiency improving.
Fleet age and Insurance
In the country there are 705, 963 vehicles (total automotive fleet) of more than 12 years, according to data from the recent Transport Statistics of 2017 of the National Institute of Statistics and Censuses (INEC). Insurance companies consider a car older than 12 years old to be old and therefore don't insure it or charge higher premiums.
Source: INEC – El Comercio / Vehicles with more than 12 years registration during 2017.
Also the heavy transport sector aspires to reach the levels of productivity and operations registered before the pandemic, so one of its main objectives in 2021 is to achieve greater efficiency in cost management. FENATRAPE considers that out of 250,000 vehicles of its fleet, today 2021, approximately 40,000 do not have a properly productive job.
For more information on transport company ranking list, please see the following link: https://ctpp.org.ec/wp-content/uploads/2019/12/Transporte-en-Cifras-1.pdf
Source: Extract of The Ranking 100 Companies Land Freight Transportation Of The Heavy Cargo Transportation Sector Of Ecuador, Pichincha Chamber of Heavy Transportation.
The Ranking is made with information from the Superintendency of Companies and considers the 5,193 active heavy cargo transport companies. The position has been defined based on the sales revenue reported in the fiscal year 2017.
https://ctpp.org.ec/wp-content/uploads/2019/12/Transporte-en-Cifras-1.pdf
(*) Felipe Vizcaíno, President of FENATRAPE
(**) Idem
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
Ecuador - 3.3 Manual Labor Costs
The Ministry of Labor is the governing body of Ecuador's labor policies. The manual of labor in the country regulates the ordinary workday as eight hours per day or forty per week. According to a decision by the Ministry of Labor, the unified basic salary for 2021 was USD $ 400, maintaining the figure generated for last year and this being the first time that the basic salary did not reflect any change. However, the government decreed some extra bonuses which are: USD $ 60 for all those workers who receive a unified basic salary and USD $ 100 for people who, due to the economic situation caused by COVID-19, have lost their jobs and not have been able to recover it. When setting the minimum wage, the aim is to protect employees against the payment of salaries that are sometimes very low. According to the International Labor Organization, it is a strategy that seeks to integrate with policies aimed at overcoming poverty and inequality in each country.
Daily minimum wage
As well as the monthly minimum wage, there is a stipulated ceiling to pay the employee for one day of work. For the year 2021 the daily salary corresponds to: US$ 13.33
Minimum hourly wage
For those workers who work only by the hour, the minimum hourly wage for 2020 corresponds to: US$ 1.66
Minimum night hour wage
The working hours for night shift runs from 7:00 p.m. to 6:00 a.m. and is remunerated with a 25% surcharge and corresponds to: US$ 2.075
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Labour Rates Overview as of 30 November 2020 |
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Cost |
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Daily General Worker (Unskilled casual labour) |
Daily wage: USD 13.33 Hourly wage: USD 1.66 Night hour wage: USD 2.075 |
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Daily General Worker (Semi-skilled labour) |
Please see below link: Sectoral minimum wages and rates
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Skilled Worker |
Please see below link: Sectoral minimum wages and rates
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To determine and apply the sectoral official wage please visit following site:
e.g.:
Page 92 “Branch Of Economic Activity: 2.- Activities In The Field Of Administrative Management”
Page 78 “Branches of Economic Activity: 4.- Other Activities Related to Transportation, Logistics and Storage”
Page 76 “Branches Of Economic Activity: 1.- Drivers / Drivers”
Page 50 “Branches Of Economic Activity: 1.- Computer And Related Activities 2.- Telecommunications And Computer Technicians (Technicians In Programming And Software-Technicians In Hardware) 3.- Other Services Related To Technology: Hardware And Software (Includes Tic's)”
According to Article 82 of Ministry of Labor: Compensation per hour: daily, weekly and monthly. - In any work contract the payment of remuneration will be stipulated for hours or days, if the worker's work is not permanent or if it is about periodic or seasonal tasks; and, for weeks or monthly payments, in the case of stable and continuous work. If the work contract has stipulated the provision of personal services by permanent partial days, the remuneration shall be paid taking into account proportionality in relation to the remuneration corresponding to the full day, which may not be less than the general minimum or sectoral. Likewise, the remaining benefits of the law will be paid, except for those that by their nature cannot be divided, which will be paid in full. The rate quoted above has been set by the Government of Ecuador and is the minimum legal pay rate for casual workers and the service contract salaries. While the Government of Ecuador is a signatory to the International Labour Organisation (ILO) Convention protecting worker rights, mechanisms for enforcing the provisions of the convention are weak.
Basic Salary Year Variation Chart for the Decade 2010
With Ministerial Agreement. No. MDT-2020-249 of Monday, November 30, 2020, the value of the Unified Basic Salary (SBU) for 2021 was made official.
https://www.trabajo.gob.ec/wp-content/uploads/2020/11/ACUERDO-MDT-2020-249-SBU-2021-SFGG.pdf?x42051
Ecuador - 3.4 Telecommunications
Ecuador has the first digital transformation agenda in Latin America. The Digital Transformation Law is a true transformation of the country.
Ecuador Digital Project
In the country, the Digital and Audiovisual Transformation Law was unanimously approved, as well as the Fintech Law[1]. Both propose the creation of regulatory sandboxes to digitally promote banking, financial, insurance, and personal finance processes and services, such as wallets, metered transfers, credit cards, all to promote the digital economy.
Also the use of telematic means for notarial procedures, similar for registrations with real estate brokers, everything related to stock market intermediation. In connectivity, community networks are also promoted in rural areas so that they can use their own networks as non-governmental organizations or community media, all with very high cybersecurity components.
Although Ecuador has several fixed line operators and a large number of ISPs, the predominant state-owned CNT leads the fixed line market and, therefore, also the fixed broadband market. However, CNT's share of the fixed line market is declining year on year, while its share of fixed Internet connections has fallen below 24%.
Telephone system
General evaluation of the fixed line service and sophisticated 4G LTE ultra-broadband network; Much of the country's landline structure is influenced by the topographical challenges associated with the Andes Mountains; Ecuador has a telecommunications market with a dominant mobile sector; The state company CNT dominates the fixed line market and, therefore, also the DSL broadband market.
5G technology in Ecuador
According to information from the Global System Mobile Association (GSMA), it is expected that the new technology will begin to be commercialized in Ecuador in 2025.
Currently there are three experimental areas of this technology in the country: two in Guayaquil and one in Manta, as a prior step to the massive arrival of this disruptive technology that will become a key ally of the country's development. The fifth generation of mobile telephony is 10 times faster than the 4G network or even fiber optic connections (under optimal measurement conditions). That is, it will allow browsing at 10 gigabytes per second. For the implementation of the 5G network in its full capacity, the new spectrum bands are required to be tendered by the State, in addition, the preparation of 5G requires large investments in fiber optics, replacement of platforms, and acquisition of new networks and virtualization of components.
For more information on telecoms contacts, please see the following link: 4.11 Additional Services Contact List.
Domestic
Fixed line services with digital networks provided by multiple telecommunications operators; fixed line teledensity is approximately 15 per 100 people; Mobile phone use has increased and the number of subscribers has reached 95 per 100 people.
International
Country code - 593; landing points for the PAN-AM and South America-1 submarine cables providing links to the west coast of South America, Panama, Colombia, Venezuela and extending to Aruba and the US Virgin Islands in the Caribbean; In 2017, Alcatel completed a 6,000 km submarine cable system from Sarasota, Florida, to Manta, Ecuador; satellite earth station - 1 Intelsat (Atlantic Ocean)
International links
There are two fiber optic cables that connect Ecuador with some other countries in America: The Pan American cable (PAN-AM) is a submarine telecommunications cable system that connects the west coast of South America and the Caribbean, crossing the continent through Panama. It has landing points in: Arica, Province of Arica, Region of Arica and Parinacota, Chile; Lurín, Lima Region, Peru; Punta Carnero, Guayas Province, Ecuador; Pratt Battery, Colón Province, Panama; Barranquilla, Department of Atlántico, Colombia; Punto Fijo, Falcón State, Venezuela; Baby Beach, Aruba; St. Croix, US Virgin Islands
SAM-1
It is an optical submarine communications cable. It began operations in 2000, connecting the United States, Puerto Rico, Brazil, Argentina, Chile, Peru and Guatemala. In 2007, SAm-1 was expanded to reach Ecuador and Colombia.
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Telephone Services |
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|---|---|
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Is there an existing landline telephone network? |
Yes |
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Does it allow international calls? |
Yes |
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Number and Length of Downtime Periods (on average) |
N/A |
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Mobile Phone Providers |
Conecel S.A (Claro), Otecel (Movistar) CNT |
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Approximate Percentage of National Coverage |
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Ecuador ended November 2022 with 1.8 million fixed telephone lines. CNT leads the market with an 83% share, followed by Etapa (6.59%), Claro (5.15%), Setel (3.70%), CenturyLink (0.94%) and Linkotel (0.64). %).
Telecommunications Regulations
The ARCOTEL Telecommunications Regulation and Control Agency is the entity in charge of the administration, regulation and control of telecommunications and the radio spectrum and its management, as well as the technical aspects of the management of social media that use frequencies. of the radio spectrum or that install and operate networks.
Thuraya, Began equipment, satellite phones and satellite modems, and VHF, UHF and HF two-way radios, wireless phones for fixed service. For example, CDMA 450 or Wimax require approval. Likewise, those devices that allow direct access to the Internet wirelessly. e.g. Access Point.
Exceptions are computers, laptops, printers, audio and video consoles or other foreign equipment that connects indirectly and wirelessly to the Internet.
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Regulations on Usage and Import |
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Regulations in Place? |
Regulating Authority |
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Satellite |
Yes |
ARCOTEL |
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HF Radio |
Yes |
ARCOTEL |
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UHF/VHF/HF Radio: Handheld, Base and Mobile |
Yes |
ARCOTEL |
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UHF/VHF Repeaters |
Yes |
ARCOTEL |
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GPS |
n/a |
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VSAT |
Yes |
ARCOTEL |
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Individual Network Operator Licenses Required |
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Yes |
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Frequency Licenses Required |
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Yes |
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Existing Humanitarian Telecoms Systems
In Ecuador the United Nations system has some shared telecommunications infrastructure. This equipment is located throughout Ecuadorian territory. This equipment includes VHF repeaters, VSAT stations and other telecommunications devices. A summary of this equipment is detailed in the following chart:
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Existing UN Telecommunication Systems |
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|---|---|---|---|
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UNDP |
WFP |
UNHCR |
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VHF Frequencies |
X |
X |
X |
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HF Frequencies |
X |
X |
X |
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Locations of Repeaters |
Quito (2) |
ESMERALDAS, TULCAN, SAN LORENZO, LAGO AGRIO |
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VSAT |
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X |
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Internet Service Providers (ISPs)
WiFi
Quito and Guayaquil offer the widest range of options to connect away from home. In addition to the hundreds of Internet cafes, WiFi is available in large shopping centers and airports, as well as in some restaurant chains and large hotels.
Mobile Internet in Ecuador
When choosing a monthly mobile package from any of the major providers, you'll probably get a certain amount of mobile data included. A pay-as-you-go SIM from any of the major networks should also get you online, as long as the phone has internet capability.
Internet speed test in Ecuador
https://www.speedtest.net/global-index/ecuador
https://www.speedtest.net/global-index/ecuador?city=Quito
Internet Penetration in Ecuador
According to Internet World Stats, Ecuador has one of the highest levels of Internet penetration in Latin America.
According to the Institute of Statistics and Censuses (INEC), only 16.6% of the country's rural population has access to fixed internet. According to INEC data, there is a gap of 20.6% between the urban area and the rural area of Ecuador.
The internet services market is led by:
• CNT with 31.3% of the market
• Megadata (22.5%)
• Conecel (12.1%)
• Setel (11.3%)
• Puntonet (4.61%)
• Stage (3.09%)
• Telconet (1.14%).
CNT (National Telecommunications Corporation) is the public telecommunications company of Ecuador that offers local, regional and international fixed telephony services, Internet Access (Dial-Up, DSL, mobile Internet), satellite television and mobile telephony in Ecuadorian territory.
Ref. https://www.bnamericas.com/es/noticias/radiografia-al-mercado-de-telecomunicaciones-de-ecuador
The fixed broadband speeds in the country are 24.54 Mbps (download) and 21.11 Mbps (upload) and in the mobile service the download speed is 22.39 Mbps and the upload speed is 10.63 Mbps.
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Internet Service Providers |
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|---|---|---|
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Are there ISPs available? |
Yes |
|
|
If yes, are they privately or government owned? |
Yes, one (1) CNT is Government property |
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|
Dial-up only? |
No |
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|
Approximate Rates (local currency and USD - $) |
Dial-up |
N/A |
|
Broadband |
50 Mb USD 24.6 70 Mb USD 28, 100 Mb USD 39.- 300 Mb USD 55.- |
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|
Max Leasable ‘Dedicated’ Bandwidth |
100 mbps |
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The latest ARCOTEL internet access figures, as of September 2022, show 2.5 million fixed broadband lines, with a penetration of 14.4%.
CB Vision - Paute. Internet provider and optic fiber https://www.cbvision.net.ec/index.php/tr/ Tel: 096 100 3000 https://cbvision.net.ec/index.php/en/empresa/about/paute
Claro Ecuador - Quito. Internet Provider. https://claro.com.ec/
Clicknet - Latacunga. Internet services providert. https://clicknet.ec/
CNT - Quito. https://www.cnt.com.ec/
Electrocom - Guayaquil. https://www.electrocom.ec/ PBX (5934) 605-2435.
Extreme - Ambato. https://extreme.net.ec/ Tel: 096315599 / 0995855757
Fibramax - Quito. https://fibramax.ec/ Tel: 099 20 20 600
Grupo SEICOM - Naranjal. www.grupo-seicom.webnode.com.ec Tel: 0960580683
Mobile Network Operators (MNOs)
The Mobile Telephony operators that operate in Ecuador are Conecel S.A (Claro), Otecel (Movistar), CNT and Virgin Mobile.
Claro leads the market with a share of 51.7%, followed by Movistar with a share of 30.7% and CNT with 17.6%.
5G technology in Ecuador
According to information from the Global System Mobile Association (GSMA), it is expected that the new technology will begin to be commercialized in Ecuador in 2025.
In November 2023, Motorola relaunched its entire portfolio in Ecuador. The brand will have a direct presence in all retail chains and operators, and through partners and distributors. 80% of the portfolio that will be presented is 5G. Part of Motorola's entry into Ecuador in this new stage is to encourage the development of 5G technology and grow the industry in the country. At the close of this edition, no new progress has been recorded in its implementation.
For information on MNOs please visit the GSM Association website.
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Company |
Number of Agent Outlets by Area |
Network Strength by Area |
Contracted for Humanitarian or Government Cash Transfer Programmes? |
Services Offered (i.e. Merchant Payment, Bulk Disbursement, Receive & Make Payment) |
|---|---|---|---|---|
|
Claro |
Nationwide |
N/A |
Yes, for users, public payments, money transfers, disbursements, etc. |
|
|
Movistar |
Nationwide |
N/A |
Yes, for users, public payments, money transfers, disbursements, etc. |
|
|
CNT Ecuador |
Nationwide |
N/A |
Yes, for users, public payments, money transfers, disbursements, etc. |
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not able to endorse, comment on any company's suitability as a reputable service provider.
[1] The Fintech Law in Ecuador, as the Organic Law for the Development and Control of Technological Financial Services is known: “allows the entry of other participants to the provision of financial services, seeking the financial inclusion of citizens who have not been able to access traditional banking” The novel aspects that this Law brings to the Ecuadorian financial system is based on the creation of new means of payment that work with a technological infrastructure, technological financial services, the creation of specialized electronic deposit and payment companies. On December 22, 2022, the so-called Fintech Law was published in the Official Registry, Second Supplement 215.
Ecuador - 3.5 Food and Additional Suppliers
Named for its proximity to the Earth’s equator, this small, middle-income nation remains one of the world’s most biodiverse countries, whose evolution depends on its open economy, making it an interesting target for food exporters from several sectors. Known for exporting Panama hats, Ecuador tops the eighth position in Latin America economies and is steadily increasing as a tourist destination. Despite the lingering income inequality and economic struggles, dollarization has brought stability for purchasing power as the appetite of Ecuadorians for imported foods continue to show a growing demand in quality, quantity and diversity.
To complete its limited inventory of bananas, fish, and tropical crops like cacao and coffee, excellent for the much-needed foreign exchange, Ecuador has joined the Andean Community, signing free trade agreements with Bolivia, Colombia, Ecuador, and Peru, as well as free trade policies with the EU, the UK, Guatemala, Mexico, Chile, and Mercosur countries.
Food Exports
Ecuador mainly exports three foods: bananas, palm oil and cocoa. This means that there are large spaces where these are grown, monocultures that wear down the environment. In addition, many lands are under these crops at the expense of other crops that we consume in the country. Of the ten main products of the non-oil exportable commodities of Ecuador, half had a contraction in their shipments in the first month of this 2021. Bananas and plantains, shrimp, wood and processed, tuna and fish and vegetable oils are in that group that had decreases that fluctuated between -9% and -36%.
Exports to the EU, yearly (food)
It is evident that the majority of traded goods are primary, a characteristic trend of international negotiations carried out by Ecuador, since its main export products do not generate added value and neither do they incorporate new technologies or specialized labor. However, products made from sea animals, as well as fruits and vegetables have been developing, consolidating themselves in more and more international markets.
Food imports (% of merchandise imports)
Among the most important food products imported in Ecuador are fats and oils, animal feed, prepared cereal products, fruits and vegetables, sugar(local sugar prices are high) and elaborate confectionery, while the main countries from which Ecuador imports are Peru, the United States, Argentina, Bolivia, Colombia, Panama, and Brazil.
Imports from the EU into Ecuador, yearly (food)
Food import trends in Ecuador are influenced by trade policies and tariffs, as well as natural climatic struggles that can significantly impact domestic production. Additionally to the scarce food production capacity and besides food items that need to be imported as there is no equivalent in the country, consumer demand and behaviour are other key factors impacting food consumption.
Food Processing
Ecuador’s food processing sector is one of the most successful components of the national economy. The sector benefits from stable, consistent demand for its products. Food and beverage processing companies are ramping up production output in response to increased product demand driven by population and income growth. Local processing companies are attempting to capitalize on this growth by lobbying the government for support at the expense of imported processed products.
Domestic food manufacturers rely heavily on local food ingredients. Ecuador’s government is attempting to restrict imports in order to stimulate local production and increased domestic use. The government is also aiming to increase production for regional export. Ecuadorian companies tend to import specialized food ingredients such as flavoring agents, colorants, preserving agents, and emulsifiers. Food processors import these products from the United States and the European Union as Ecuador lacks the means to manufacture these products in sufficient volumes.
Ecuador’s domestic food processing industry’s main food and beverage sub-sectors include:
- Meat, meat products and subproducts
- Processed shrimp
- Fish and other processed aquatic products
- Crude and refined animal and vegetable oils
- Processed dairy products
- Milling and bakery products, noodles and pasta
- Sugar and sugar cane products
- Processed cocoa products, chocolates, and confectionery products
- Foodstuffs various
- Beverage products
Local Market and Demand
Ecuadorian food importers prefer to be contacted directly by producers to negotiate the best sales margins. Food import trends in Ecuador are influenced by trade policies and tariffs, as well as natural climatic struggles that can significantly impact domestic production. Additionally to the scarce food production capacity and besides food items that need to be imported as there is no equivalent in the country, consumer demand and behaviour are other key factors impacting food consumption. Geographical location, irregular landscape, relatively unfavourable for agricultural production, growing population and vulnerability to floods, droughts, earthquakes and even volcanic eruptions mark Ecuador as a country that is not self-sufficient in food.
Source: World Bank staff estimates from the Comtrade database generated by the United Nations Statistics Division
Generic country information can be located from sources which are regularly maintained and reflect current facts and figures. For a general overview of country data related to the service and supply sectors, please consult the following sources:
https://data.worldbank.org/indicator/TM.VAL.FOOD.ZS.UN?end=2019&locations=EC&start=1962&view=chart
More trade statistics including main economic indicators, GDP by sector, trade in goods and trade in commercial services are provided by the EU Commission Directorate-General for Trade on their website: http://ec.europa.eu/trade/policy/countries-and-regions/statistics/
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.