Empresa de Telecomunicaciones de Bogota (ETB), the phone company that serves Colombia’s capital, is going through a difficult period. The company has been trying to find a path to become profitable and more competitive since last year.
Last December, ETB’s board proposed the sale of shares in order to try to “save” ETB from a losing market value. The move was prompted by the company’s lacking ability to add value and make the necessary investments for its future. However, after Bogota council began debating a proposal that would allow the city to sell part or all of its 86.6% stake, Bogota’s mayor changed her mind and announced a plan to avoid the sale. Since then, ETB stocks have fallen to a 10-month low.
To avoid the sale of ETB, the government is talking searching for new investments to finance the phone company’s planned expansion. According to Bloomberg, Colombia’s capital city is in talks with Tele Norte Leste Participacoes SA, Brazil’s phone company known as Oi, to seek financing so the city doesn’t need to sell its stake in ETB.
The secretary of finance Héctor Zambrano said that there are other ways to enhance the company than privatization. The most important thing is to keep a company with more than 125 years of history, he said, emphasizing that ETB is not broken, but needs more investment and resources.
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