Country profile: Colombia

Colombia, one of the largest telecommunications markets in Latin America, continues to evolve amid financial challenges and growing demand for improved connectivity. With a large subscriber base, the market is highly competitive, yet operators face pressures from debt and the need for modernisation. Recent developments, including regulatory changes and strategic investments, are reshaping the landscape, creating new opportunities for growth while addressing the country’s digital divide.

Telefónica, one of Colombia’s major operators, has been actively reducing its debt by selling assets, a move that has brought potential financial relief while attracting investment into the sector. These strategic decisions are part of the broader trend of financial restructuring within the country’s telecom market, as operators seek to stay competitive while modernising their infrastructure.  In early 2025 Telefónica agreed to sell 67.5% of its Colombian subsidiary, Coltel, which operates under the Movistar brand, to Millicom for approximately €368 million (£318 million)

In addition to this acquisition, Millicom has expressed interest in purchasing the remaining 32.5% of Coltel, which is currently held by the Colombian government and other investors. If successful, this move would grant Millicom full control of the telecom company, further strengthening its presence in Colombia's telecommunications sector.

In 2025 SBA Communications has confirmed it is exiting Colombia with a sale of its tower assets to a yet undisclosed buyer, with further details to be announced at a later date.

SBA Communications stated that the deal is expected to close by the end of Q1 this year, citing a decision to exit small subscale markets and focus capital on core operating markets instead.

With just 206 towers in the country, Colombia is one of SBA Communications’ smallest country portfolios. The market is also home to a competitive tower landscape with 15 different towercos present in the market, operating a combined 21,594 sites along with mobile operators Claro, Movistar, Tigo and WOM.

Tower One Wireless, a Canadian telecommunications infrastructure provider, has strengthened its presence in Colombia by activating new telecom towers in rural regions such as Tolima, Antioquia, Huila, and Córdoba.

These towers, designed to bridge the communication gap in underserved areas, are self-supporting masts that support local telecom operators. Although smaller in scale than previous deployments, this initiative reflects Tower One’s ongoing commitment to expanding rural

connectivity in Colombia and across Latin America. In a parallel effort to improve digital access, Claro (América Móvil group), has announced a partnership with SpaceX’s Starlink. This collaboration makes Claro the first local operator to offer satellite internet services, focusing on businesses in remote areas. By utilising Starlink’s advanced satellite technology, Claro aims to address the long-standing digital divide and offer high-speed broadband solutions to companies of all sizes, from start-ups to large corporations.

The regulatory environment has also been instrumental in shaping Colombia’s telecom industry. The Colombian Communications Commission (CRC) Has been leading a research about infrastructure sharing in the country, engaging with main operators and tower companies in this discussion.

Recent spectrum auctions have paved the way for faster network deployments, though challenges remain. Tigo Colombia, in particular, faces financial pressures and ongoing recapitalisation efforts. A network-sharing agreement between Tigo and ColTel has been introduced to improve operational efficiency and expand coverage. However, this deal may result in the early termination of many tower leases, creating uncertainty in the market. Meanwhile, Brazil’s Telecall has announced significant investments in Colombia’s 5G infrastructure, focusing on historically underserved areas. The interconnected nature of the regional telecom markets is evident from the impact of WOM’s bankruptcy filing in Chile, which has affected its operations in Colombia. Despite these challenges, the country remains a major hub for telecom investment.

Companies such as American Tower and Phoenix Tower International continue to expand their portfolios through strategic acquisitions, while Andean Telecom Partners (ATP) and other tower companies are heavily investing infrastructure to meet growing demand, particularly in preparation for the 5G rollout.

Colombia’s telecom sector is undergoing a rapid transformation, driven by opportunities in rural connectivity and key regulatory developments. These changes are leading to broader coverage, reduced operational costs, and increased competition, fostering innovation and market growth. The consolidation of tower assets, including recent sales by key players, marks a significant shift in the market. This trend towards greater consolidation and investment reflects the rising demand for telecom infrastructure and the competitive pressures shaping the industry.