Colombian operator Empresa de Telecomunicaciones de Bogota has set for Jan. 19 the commercial launch of its mobile telephony services under mobile virtual network operator. ETB first started offering data services under the brand name Internet Móvil ETB in 2010, said Jose Otero, president of Signals Telecom Consulting. The mobile launch will allow the operator to strengthen its service offerings in the market, but the specialist says it is unlikely that the ETB mobile offering will result in strong growth in subscribers in the short term.
Recent changes in Colombia’s legal framework also favors the launch of MVNOs. Currently there are three MVNOs operating in Colombia — UFF, Une and ETB — with more expected. “Metrotel and Emcali are negotiating,” Otero said. “It is possible to have five MVNOs in Colombia.”
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The current MVNOs all rely on Tigo’s network, with UNE the first to enter the Colombian market, followed by ETB and most recently Uff Movil. Uff focuses on prepaid data service and international voice calls, which offer was noted by Frost & Sullivan as an aggressive marketing campaign offering calls at 14 cents per minute to fixed and mobile lines in Colombia, the United States and Canada; and at the same rate to fixed lines in Spain, Venezuela, Mexico, the United Kingdom, Italy, France and Germany.
In Colombia, the MVNO model is driving both mobile traffic and revenues as aggressive pricing is enticing new consumers to adopt mobile services and accelerating the migration of fixed to mobile telephony.
Local media reported that ETB will initially offer prepay plans, and service will be available in the Bogota, Cundinamarca and Meta areas and will be gradually expanded across Colombia.
ETB is expected to invest about U.S. $311 million (600 billion pesos) during 2012 to upgrade its infrastructure and launch pay-TV services, which could be essential to complement its offer.
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