Once a dominant force in Colombia’s telecommunications sector, Empresa de Telecomunicaciones de Bogotá (“ETB”) has experienced one of the steepest declines over the past decade, with its market value plummeting by 84%.

ETB has explored modernisation efforts to regain its competitive edge, including potential partnerships or privatisation, which could provide access to capital, technology and expertise essential for competing with industry giants such as Claro, Movistar and Tigo. Unfortunately, “ETB is not a strong player at the national level. Even in Bogotá, its main market, it is losing ground to competitors,” confirmed a former ETB executive.

As of early 2024, Colombia’s mobile telecommunications market has expanded, with mobile subscriptions reaching approximately 87.66 million in March 2024, up from 87.37 million in December 2023. This growth has resulted in a mobile penetration rate of around 147.5% of the total population, reflecting the increasing number of individuals holding multiple mobile connections. Despite this expansion, the market faces considerable challenges, with ETB encountering competitive pressure, particularly in the mobile sector. Our sources in Colombia revealed, “There were negotiations with Telefónica,” but Telefónica focused primarily on potential public-sector business through inter-administrative agreements rather than ETB’s strategic value.

“ETB is not a strong player at the national level. Even in Bogotá, its main market, it is losing ground to competitors.”

Former ETB executive with more than 20 years experience, Colombia

Fast forward to January 2025, where a notable disruptor WOM Colombia, another mobile network service provider with a customer base of seven million, was rescued from bankruptcy by Sur Holdings, raising concerns about its long-term viability in an industry that demands continuous investment.

The overall challenging outlook for Latin America’s telecommunications sector stems from the fact that many companies have yet to fully capitalise on their investments in 5G and fibre infrastructure. ETB’s fibre-to-the-home (“FTTH”) network, currently serving 1.5 million households in Bogotá, is a valuable asset ready for a fresh coat of paint. Our source affirmed that ETB’s infrastructure within the city “is its greatest asset as well as the number of connectable homes its network can reach.” Still, it lacks the competitive edge in pricing and quality to rival private-sector players.

ETB does present a potential opportunity for investors seeking to leverage its infrastructure by offering it for lease to third parties under a network-neutral model. Unfortunately, the company’s financial challenges create some high hurdles. The former executive noted, “Any attempt to sell, restructure, or make significant changes to the company must be approved by the Bogotá Council.”

In the current electoral environment, it is unlikely that a majority of councillors will support measures such as “privatisation or the entry of strategic partners,” as these decisions tend to be politically sensitive and could face opposition. This adds an uninviting layer of complexity to any efforts to revitalise or restructure ETB. As a source reiterated, “There is no political will to rescue the company from the limbo in which it finds itself.”

“There is no political will to rescue the company from the limbo in which it finds itself.”

Former ETB executive with more than 20 years experience, Colombia

In addition to the political challenges, ETB has resistance from trade unions, which have historically opposed such processes, and from the public, who view the company as more than just a business. For many, ETB is “a symbol of local sovereignty in the telecommunications sector” and is seen as a highly valuable public asset. This deep-rooted perception makes any potential changes, such as privatisation or restructuring, particularly sensitive and challenging to navigate, risking ETB’s continued status of disconnect.