Movistar Colombia and Tigo, controlled by the Millicom group, have signed a memorandum of understanding to explore the integration of their mobile phone networks in Colombia, through a new infrastructure company of common ownership. The objective of this agreement is to make the management of current networks more efficient and for the new company to become a vehicle for the deployment of new technologies such as 5G. Approximately more than 35 million mobile users of both companies in Colombia would benefit from this agreement, having access to services with better standards.
In geographical terms, the consolidated network would optimize the quality of mobile services in more than 700 municipalities in Colombia and national coverage would be strengthened in about 10% of the territory. In line with the objectives set by the Government of Colombia, which owns 32% of Telefónica Colombia, to achieve Internet coverage for 85% of the population, the agreement will boost connectivity, access to information and digital services, which are fundamental to improving education, health care, financial inclusion and entrepreneurship for the 50 million Colombians.
"By ensuring that more people have access to the tools needed to take advantage of digital opportunities, the agreement will also promote productivity, innovation and competitiveness," the companies said in a joint statement on Friday.
In parallel to this agreement, the two companies will continue to be competitors in the provision of retail and wholesale telecommunications services and will maintain their independence and business, strategic and commercial autonomy. The development of this network requires prior evaluation and approval by the Superintendence of Industry and Commerce (SIC). If the agreement is finalized, approval by the Ministry of Information and Communications Technologies will also be necessary.
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