Colombia, the third largest telecom market in Latin America with over 80 million subscriptions, has experienced a resurgence in investment thanks to improved stability and recent market developments.
In 2024, Millicom’s strategic sale of its towers to KKR backed NEXOlatam underscores a consolidation trend in tower assets, forming Towernex, which now manages 1,132 towers across 28 states, and is actively expanding its portfolio amid rising demand.
Recently, Millicom has unveiled plans to acquire Telefónica’s 67.5% stake in the Colombian operator Coltel, along with shares owned by the government and minority shareholders, in a bid to take full control of Tigo UNE. The proposed deal would involve a $1
billion investment, including both cash and assumed debt. Although negotiations are still underway and may not reach completion, the acquisition of Telefónica’s stake in Coltel is significant, as the operator holds a 25% share of Colombia’s mobile market, positioning it as the country’s second-largest provider despite facing financial difficulties. For Telefónica, this sale aligns with its ongoing efforts to reduce debt, offering a potential influx of cash.
Colombia - telecom market statistics Q3 2024
Recent regulatory actions have further shaped
Colombia’s telecom landscape, highlighted by the December 2023 5G spectrum auction. Major operators like Tigo, Movistar, WOM, Sociedad Futura Telecall Colombia, and Claro Colombia participated, paving the way for accelerated network deployments. However,
challenges persist, including instability within Colombia’s MNO market, particularly Tigo Colombia’s ongoing recapitalization amid financial pressures. All eyes are on the new network sharing deal Tigo and ColTel have forged aimed at enhancing operational efficiency and extending coverage nationwide, reflecting industry efforts towards improved service delivery, but which threatens 1,000s of tenancies ending early.
Meanwhile, Brazil’s Telecall eyes substantial investments of up to US$100 million in Colombia’s 5G infrastructure, focusing on both traditional wireless 5G and fixedwireless access (FWA) solutions for underserved areas.
Colombia - estimated tower ownership Q3 2024
WOM’s bankruptcy filing in Chile has also impacted its operations in Colombia, illustrating the financial interconnectedness of regional telecom players. Despite these complexities, Colombia remains a hotspot for
telecom investment, attracting major towercos like American Tower and Phoenix Tower International. These companies are expanding their footprints through strategic acquisitions, while Andean Telecom Partners (ATP) and other towercos enhance infrastructure to meet escalating demand ahead of 5G rollout.
Colombia’s telecom sector is witnessing rapid evolution driven by expanding opportunities in rural areas and regulatory developments. Network sharing agreements play a crucial role in extending coverage efficiently while
managing operational costs.
The entry of new telecom operators has injected dynamism into the market, fostering competition and innovation. Regulatory reforms aimed at enhancing infrastructure deployment and service accessibility are pivotal in shaping Colombia’s telecom landscape, signaling growth prospects amid evolving market dynamics.
