The future of Empresa de Telecomunicaciones de Bogota (ETB) seems to be uncertain. It is the phone company for the city of Bogota, and one of the largest telephone operators in Colombia, with about 2 million lines. It is first in subscribers for Internet broadband service, but the carrier is going through a difficult period and has been trying to find a path to become profitable and more competitive.
Now ETB says it will make a new share offering to obtain resources to finance the modernization of its portfolio of services and technology. According to district officials, their representatives on the Board of Directors of the ETB begin the study of the Strategic Plan 2012, which incorporates multiple financing options for the future expansion of the company.
The search for new alliances and investments comes after failed former attempts to sell the company. Last July, Colombia‘s Bogotá city council rejected a proposal to sell the 86.6% of ETB it owns. (In December 2010, ETB’s board had proposed the sale of the shares in order to try to “save” ETB from a losing market value.)
Despite its uncertain future, ETB is about to acquire cable TV provider Ingelcom, which operates in the Cucuta area. ETB announced last week its plans to buy the subscription television company, which would enable ETB to launch pay-TV services in the near future. The purchase would be for 0.28% of the value of ETB’s assets, which would make the deal worth about US $13.6 million.
Currently, ETB has an agreement with DirecTV to provide bundled services of fixed telephony, Internet and television. The carrier has about 11% of its shares floated on the Colombian Stock Exchange.
Follow RCR Wireless Americas on Twitter: @RCRAmericas and subscribe to our free periodic newsletters.
