Arcotel’s revocation of Cable Andino’s license raises concerns, but Ecuador’s Internet remains stable due to alternative providers and redundancies.

The decision by Ecuador’s Telecommunications Regulation and Control Agency (Arcotel) to revoke Cable Andino’s operating license has sparked widespread speculation about potential risks to the nation’s Internet connectivity.

While the legal and regulatory battle unfolds, government officials and industry experts insist that Internet services will remain stable, highlighting the resilience of Ecuador’s digital infrastructure and the safeguards built into its telecommunications network.

Revocation of Cable Andino’s License

Cable Andino, a subsidiary of Telconet and a participant in the Pacific Caribbean Cable System (PCCS), has been a vital component of Ecuador’s Internet ecosystem since 2015.

The PCCS, a 6,000-kilometer submarine cable system, connects Ecuador with other countries in the Americas and the United States, providing critical data services through its high-capacity network of 80 terabits per second.

Arcotel justified its decision by citing irregularities in the initial 2015 license grant, describing the process as flawed. The agency has ordered a transfer of Cable Andino’s privately owned infrastructure to state oversight within one year, although the logistics of this transition remain undefined.

Cable Andino, on the other hand, is expected to challenge the ruling in court, prolonging the resolution of this high-stakes dispute.

Submarine Cables in Ecuador: A Wider Context

Submarine cables are the backbone of global Internet and data connectivity. Ecuador relies on multiple systems to ensure stable service, including the PCCS, Telefónica’s SAM-1, and the Pan American cable. Before the PCCS began operations, Ecuador’s Internet infrastructure was strained by aging systems with limited capacity, like the Pan American cable, installed in 1998, and SAM-1, introduced in 2000. The PCCS significantly upgraded the country’s connectivity, offering far greater bandwidth and redundancy.

Today, the market for submarine cable services in Ecuador is shared by four key players. According to Arcotel, Telxius dominates with 53.18% of the market, followed by CNT, Cable Andino, and Conecel, each with 15.38%. Cable Andino’s contribution to the market, though notable, is relatively small, ensuring that the remaining providers have sufficient capacity to absorb its share without causing disruptions.

Assurances from the Government and Industry

Telecommunications Minister César Martín has repeatedly reassured the public that Internet services will not be interrupted, emphasizing the redundancies built into Ecuador’s telecommunications network.

“There is no technical or legal justification for any disruption,” he stated, warning of sanctions against providers that fail to meet their obligations.

Industry experts support the government’s stance. Roberto Aspiazu, former director of the Association of Telecommunications Companies of Ecuador (Asetel), highlighted the industry’s reliance on fallback agreements to ensure seamless operations.

“Telecommunications providers typically have alternative suppliers in place to handle emergencies. Transitioning between providers happens almost instantaneously and does not require new agreements,” he explained.

Additionally, telecommunications researcher Rubén Rumipamba pointed out that while 45% of Internet traffic in Ecuador depends on the PCCS, immediate disruptions are unlikely due to the one-year transition period granted by Arcotel. However, he cautioned that prolonged legal disputes could introduce uncertainties if no clear agreements are reached between the parties.

Beyond Internet Connectivity

Undersea cables like the PCCS are not limited to providing Internet services. They play an essential role in data transmission and, to a lesser extent, energy transfer. This makes their uninterrupted operation critical for broader connectivity across regions.

The redundancy offered by multiple cable systems is a crucial safeguard. For instance, Telxius and CNT’s larger market shares mean they are well-positioned to absorb traffic in the event of capacity reductions from smaller players like Cable Andino. Moreover, partnerships between international and regional cable operators create additional layers of security for Ecuador’s connectivity.

Legal and Operational Uncertainties

Despite the assurances, the Arcotel-Cable Andino dispute raises concerns about legal ambiguities and the efficiency of state-managed transitions. Transferring privately invested infrastructure to government oversight is fraught with challenges, especially in the absence of clear regulatory frameworks.

Legal remedies pursued by Cable Andino could delay the resolution, extending the uncertainty for months or even years.

In the meantime, Ecuador’s telecommunications landscape appears resilient. Diversified cable networks, cooperative agreements among providers, and substantial infrastructure investments have fortified the country’s digital backbone.

For now, Ecuadorians can rely on uninterrupted Internet access while the parties involved navigate the complexities of legal and regulatory processes.