Tigo and Movistar highlighted that the potential agreement will increase current national mobile coverage by 10%
Colombian operators Movistar and Tigo signed a Memorandum of Understanding (MoU) to explore the possibility of sharing their mobile access networks under a new, jointly owned infrastructure firm.
In a joint statement, both companies said that if realized, the agreement would benefit a total of 35 million mobile users because it will enable both companies to operate their mobile networks and use spectrum more efficiently, generating greater resources to expand coverage and optimize service quality. It will also ensure compliance with all regulatory obligations related to access, usage and exploitation of the network infrastructure, they added.
Tigo and Movistar also highlighted that the potential agreement will increase current national mobile coverage by 10%. According to the companies’ estimates, the consolidated network would optimize the quality of mobile services in over 700 municipalities in Colombia. This new infrastructure company would serve as a platform for deploying new mobile technologies such as 5G.
According to the MoU, both operators will continue to compete in the provision of retail and wholesale telecommunications services while maintaining their autonomy in their commercial activities.
“This announcement follows the best practices at an international level and aligns with similar agreements that the Telefónica Group has already implemented in the United Kingdom, Germany, Peru and Mexico with other operators, aiming to generate operational efficiencies and accelerate the technological evolution of networks. The agreement also responds to Colombia’s need to ensure the sustainability of connectivity offerings, but through business models that promote competition,” said Fabián Hernández, president of Telefónica Movistar“
Marcelo Cataldo, president of Tigo, said: “We aim to set a milestone for the telecommunications sector in Colombia and Latin America. The sustainability of the telecommunications sector is at stake in Colombia. This initiative will enable us to make viable the deployment of the infrastructure needed by the country to continue closing the digital gap and prepare for the arrival of future technologies.”
The two companies also expect to carry out a joint bid for the 5G licenses the Colombian government aims to award in the second half of the year, local newspaper La Republica reported. The agreement must be approved by the Superintendence of Industry and Commerce and will also require the approval from the Ministry of Information Technology and Communications.
Mobile operator Claro currently leads the Colombian mobile telephony market with 37.5 million mobile lines, followed by Movistar, with 20.5 million and Tigo, with 15 million.
