Investing in the Telecommunications Sector in Ecuador: An Outlook Before the Upcoming Presidential Elections

Abstract

This article presents a review of the state of an important financial indicator as well as some national intrinsic factors that drive money investment in the telecommunications sector in Ecuador. The review aims at analyzing and understanding those factors in the context of the upcoming presidential elections (February 19th 2017, and a possible second round of elections in April 2nd 2017). This project intends to give a general idea of whether the telecommunications sector will remain attractive for the investors, or not, depending on the economic and regulatory visions of the person taking office next May 2017. The financial analysis considers the calculation of the weighted average cost of capital over the last seven years and the national factors include political and social status of the nation to this date. Both will give a broad outlook of the profits earned by the telecommunication companies lately and aid interpret likely future changes in the sector. The findings give a high possibility of the telecommunications market to continue in full swing and become more open and inviting to new foreign investments.