Overview
National Focus: Government Digital Economy Growth and Transformation
Digital transformation is a central pillar of Ecuador’s economic development strategy, aligning with global trends in digitalization and innovation. The Ministry for Telecommunications and Information Society (MINTEL) published on April 8, 2025, a Digital Transformation Agenda 2025-2030 that aims to reduce the digital divide, strengthen public sector digitalization, and foster a digital culture. The agenda’s roadmap comprises seven main pillars: digital infrastructure; culture and digital inclusion; digital economy; emerging technologies for sustainable development; digital government; interoperability and data processing; and digital security and trust. The state-owned telecoms operator, National Corporation of Telecommunications (CNT), signed a five-year Alliance Framework Agreement (AFA) with Google Cloud in January 2025. The AFA, Google’s first in South America and 25th in the world, includes a commitment for CNT to purchase at least $300 million from Google over the course of the agreement. Initial AFA priorities include utilizing satellite imagery to detect illegal activities (e.g., illegal fishing and mining), digitizing paper-based administrative procedures, and training and automation using artificial intelligence.
Ecuador has made efforts to enhance its cybersecurity, including ratifying the Budapest Convention on Cybercrime (2024), which provides a framework for international cooperation on cyber threats​. Ecuador has also taken steps in establishing a central Computer Security Incident Response Team (CSIRT) by working closely with the United States to implement best practices and technical assistance.
Projected Digital Economy Growth
Ecuador’s digital economy has seen steady expansion with significant growth in e-commerce and internet usage. By 2024, Ecuador’s e-commerce market was valued at $5.5 billion with the greatest growth and participation from the retail sector. Ecuador had an 83.7 percent internet penetration rate in 2024, providing a solid foundation for continued digital growth. With over 15.2 million internet users and 74 percent of the population active on social media, Ecuador is well-positioned for further advancements in digital trade​.
The telecommunications sector is the fastest growing sector in the country, representing $2.3 billion in 2024 (2 percent of GDP). New international players entered the Ecuadorian market including Google Cloud, Amazon Web Services, Starlink, and Oracle. Ecuador’s efforts to increase connectivity include its connection to the Mistral submarine cable in partnership with América Móvil (Claro) and Telxius (Telefonica). A Galápagos subsea cable and a Carnival Submarine Network (connecting Ecuador with the United States) are expected to be built in the next few years.
U.S. satellite broadband provider HughesNet is expanding operations, particularly in rural areas, and SpaceX’s Starlink is growing steadily with community gateways in Galápagos. Vrio’s Group/DirecTV remains the market leader for paid TV, with a 45 percent market share (December 2024). It plans to launch, in alliance with Amazon Web Services (AWS), Project Kuiper beginning in 2025 to increase broadband access through a constellation of low earth orbit satellites.
Market Challenges
Regulatory Environment
Only three companies serve the Ecuadorian telecom industry: state-owned firm National Corporation of Telecommunications (CNT) with an 18 percent market share, Mexico’s Claro with a 54 percent market share, and Spain’s Telefonica with a 28 percent market share (ARCOTEL, February 2025). The three telecoms’ carriers provide 18.4 million mobile lines in Ecuador, representing a penetration of 102 percent (March 2025). Only private sector carriers require spectrum licensing, putting CNT in an advantageous position and in the forefront of 5G deployments. Claro and Telefonica are finalizing 4G spectrum negotiations since their contracts expired in 2023. 4G coverage in Ecuador is at 80.6 percent with 14.5 million users (ARCOTEL, Jan-June 2024).
Companies from the People’s Republic of China dominate Ecuador’s digital and telecommunications infrastructure. The Lasso and Noboa administrations focused efforts in diversifying its vendor portfolios at all IT levels; however, Huawei and ZTE still have a strong footprint in the country. U.S. companies able to securely integrate their hardware and software to these Chinese legacy systems have a favorable opportunity for market entry. U.S. companies may differentiate themselves from low-cost Chinese companies by emphasizing quality, value for money, and high standards of data protection and cybersecurity.
Mobile broadband for internet access is limited. In Ecuador, broadband adoption reaches 20 percent in rural and isolated areas, whereas in large population centers it exceeds 70 percent. The Ministry of Telecommunications (MINTEL) seeks to invest in connectivity infrastructure, especially in rural areas. The cost of deploying networks is high in relation to population density and people’s ability to afford internet services. A possible solution is infrastructure sharing to reduce connectivity gaps between cities and rural areas, as well as considering alternative technologies for rural connectivity (e.g., mobile hotspots and satellite services).
Digital Trade Barriers
In May 2021, Ecuador’s first Personal Data Protection Law went into effect. One of its provisions established that the international transfer of personal data can only be made to organizations or economic territories that provide adequate levels of protection. Companies do not need prior authorization for data transfer. The Superintendency of Data Protection, the regulating body established in April 2024, will define what constitutes adequate levels of protection. The law also establishes fines on data protection infractions, with penalties ranging between 0.7 percent and 1.0 percent of revenue based on business volume. The Superintendency issued resolution No. SPDP-2024-0002-R on September 6, 2024, to establish a technical guide for the registration of special proxies for foreign data controllers and data processors that perform personal data processing activities. The resolution gave resident and non-resident companies six months (i.e., until March 2025) to comply with these requirements.
The Law for the Development of Technological Financial Services (Fintech Law) came into force in December 2022. The Fintech Law amended Article 146 of the Ingenuity Code, which had previously required the localization of strategic sector and national security data. The reform established a classification of data that includes open, reserved, and confidential data. While the Fintech Law maintains data localization requirements for reserved and confidential data, it eliminated the localization requirement for other categories of data. Consequently, companies may now provide storage services for some Ecuadorian data from data centers outside Ecuador. However, under the Ministry of Telecommunications (MINTEL) Agreement 141 of 2011, customers must contract with cloud services providers that rely on data centers outside Ecuador through the National Telecommunications Corporation (CNT), a state-owned company, as a local partner.
As artificial intelligence (AI) becomes more integrated into Ecuador’s digital economy, the country has introduced draft legislation to govern AI in Ecuador. This bill is still under debate in the National Assembly. If passed, the bill may impact AI-driven business models​ in Ecuador.
Digital Trade Opportunities
Cross-Sector Enabling Technologies in Ecuador
Although in its early stages, artificial intelligence (AI) is one of the cross-sector enabling technologies in Ecuador as digital transformation keeps unfolding. Policy making is geared towards encouraging investment in AI through legal incentives, and will prioritize projects that promote technological innovation, generate social benefits and collaborate with educational and research institutions. The Ministry of Telecommunications (MINTEL) oversees implementation, monitoring, and control of AI policies.
Specific Industry Sub-sectors
Cybersecurity
E-commerce
Digital marketing
Value-chain applications
Internet of Things
Artificial intelligence (AI)
Smart Cities
ICT and Telecom Equipment
5G solutions and related goods/services for telecom operators
Private networks
Data analytics
Defense IT solutions
Government automation solutions
Port and airports automations solutions
Service providers for unattended areas
Digital Economy-related Trade Events
eCommerce Day: Held annually since 2010, this event highlights regional trends and best practices in e-commerce. The event from June 18 to 20, 2025 attracted key players from across Latin America​.
CyberDay: Ecuador’s CyberDay, is a major e-commerce event that drives online sales. In 2025, CyberDay took place April 28 to 30.
Resources
U.S. Embassy Commercial Specialist – Sandra Tinajero, TinajeroSV@state.gov