- Operating business highlights plans to beef up its 5G spectrum platform, despite ongoing suggestions parent Telefónica is keen to reduce ties to the Colombian market.
Telefónica Colombia (Movistar) expressed interest in two of four spectrum bands proposed by the Ministerio de Tecnologías de la Información y las Comunicaciones (Ministry of Information Technologies and Communications/MinTIC) for auction in the coming two years.
According to the Ministry, Colombia Telecomunicaciones (Coltel), in which Telefónica owns a 67.5% stake, said it will be interested in the 2.5GHz band and the 5G‑enabling 3.5GHz range. The operators were allowed to specify when they would like the spectrum to be assigned, and Coltel selected the second half of 2021 for the 2.5GHz frequencies and second half of 2022 for the 3.5GHz band.
Coltel did not indicate interest in the 700MHz and 1.9GHz bands, however. Overall, expressions of interest were received from a total of six operators, including: Millicom‑owned Colombia Móvil, which operates under the Tigo brand; Comcel, which uses the Claro brand and is owned by America Móvil; state‑run utility Emcali; Empresa de Telecomunicaciones (ETB); and Partners Telecom Colombia (Avantel).
| Operator | 700MHz | 1.9GHz | 2.5GHz | 3.5GHz | 3.5GHz regional | ||||
|---|---|---|---|---|---|---|---|---|---|
| Source: Ministerio de Tecnologías de la Información y las Comunicaciones. | |||||||||
|
Yes/No |
Period |
Yes/No |
Period |
Yes/No |
Period |
Yes/No |
Period |
Yes/No |
|
|
Comcel |
Yes |
H2 2021 |
No |
N/A |
Yes |
H2 2021 |
Yes |
H2 2021 |
No |
|
Emcali |
No |
N/A |
No |
N/A |
No |
N/A |
Yes |
H1 2021 |
Yes |
|
ETB |
Yes |
H2 2022 |
Yes |
H2 2022 |
Yes |
H2 2022 |
Yes |
H2 2022 |
Yes |
|
Partners Telecom Colombia |
Yes |
H2 2021 |
No |
N/A |
Yes |
H2 2021 |
No |
N/A |
No |
|
Coltel |
No |
N/A |
No |
N/A |
Yes |
H2 2021 |
Yes |
H2 2022 |
No |
|
Colombia Móvil |
No |
N/A |
No |
N/A |
No |
N/A |
Yes |
Undefined |
No |
3.5GHz proves popular
Coltel was among five operators to express interest in the 3.5GHz band, which MinTIC noted is an important band for the deployment and development of 5G. Indeed, the Telefónica‑owned operator and Huawei Technologies have already conducted what Coltel called the first trial of 5G technology in the country, using a temporary 3.5GHz licence freed up by MinTIC for an initial period of six months (Telefónicawatch, #143).
Worth noting is that Partners Telecom Colombia did not indicate interest in applying for 3.5GHz spectrum. The company represents investment fund Novator Partners, which reportedly acquired a majority stake in Colombia’s fourth operator Avantel in July this year.
Staying or going?
Coltel’s interest in buying 5G spectrum raises questions over Telefónica’s strategy for the Colombian market, as it suggests an element of future planning. It has been speculated that the Group intends to exit the market as part of recent moves to focus on its four main markets (Brazil, Germany, Spain, UK).
Telefónica elected not to bid in the 4G spectrum rights auction in late‑2019, fuelling the rumours that a quick exit from the market could be in the offing (Telefónicawatch, #140).
The speculation was heightened following reports that the Colombian government wants to sell its 32.5% stake in Coltel, suggesting a sale might be more attractive if there is potential to buy both Telefónica’s stake and the state’s holding (Telefónicawatch, #146). Novator has been tagged as a potential buyer.
Meanwhile, Dinero reported that Telefónica is advertising job vacancies in Colombia, including in Bogotá, Medellín, Pasto, and Villavicencio. The vacancies are said to be in the fields of sales, administration, commercial strategy for fixed and mobile products, and more.
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