Colombian operators looking to close digital divide with fiber investments

Alongside the rollout of 5G, Colombian operators are making significant investments to improve fiber optics networks, focusing on both backbone infrastructure and last-mile connections to homes.

According to the latest data from the ICT ministry (Mintic), from March, Colombia had 3.6 million fiber optics connections, compared to 4.8mn connections via cable. Copper xDSL technologies accounted for 300,000 accesses and other technologies for another 400,000.

At the end of the first quarter, Claro was the provider with the most fixed internet connections (3.35mn), followed by UNE EPM or TigoUne (1.56mn), Movistar (1.5mn) and ETB (630,000).

A report by Movistar suggests that the expansion of fiber optics to homes could increase Colombia’s GDP by 2.9 trillion pesos (US$688mn).

CLARO

Claro recently announced an investment of more than US$200mn to strengthen its fiber optics network, improving services for more than 1.5mn homes across the country.

The investment also includes boosting infrastructure in rural areas, helping to close the digital divide.

In Cali, the company has invested 28 billion pesos to improve its existing network and upgrade equipment with the latest technology. It also announced the deployment of a 223km fiber optics network.

This year, the company also announced the installation of fiber optics in Caucasia, benefiting 11,000 homes, and in Casanare, reaching 9,000 homes.

The company will continue investing across the country to connect more cities and municipalities with fiber optics in 2024 and strengthening the network in the 146 municipalities already connected.

ONNET

OnNet, the neutral fiber optics company jointly owned by Telefónica and fund KKR, recently secured a loan of 265bn pesos to further its fiber expansion plans.

This is the first loan granted by financial development institution FDN in the telecommunications sector.

OnNet is present in 85 cities, with nearly 4.2mn homes connected via its FTTH network, serving over 12.5mn people. The company also operates approximately 340 high-availability fiber optics rings.

Its goal for 2024 is to reach more than 4.3mn homes across approximately 90 cities.

In 2022 and 2023, OnNet invested 722bn pesos, with 376bn pesos disbursed last year alone.

MOVISTAR

As part of its copper-to-fiber migration efforts, Movistar will invest more than 13bn pesos to deploy fiber optics to over 60,000 homes and businesses in the municipalities of El Carmen de Viboral, La Ceja and Rionegro in eastern Antioquia department, according to local press.

Movistar already has more than 1.37mn customers connected to fiber optics and provides coverage to over 5mn people and businesses nationwide.

Telefónica, Movistar’s parent company, has entered into a non-binding agreement with Millicom (Tigo) for the sale of its Colombian operator, Coltel, for US$400mn in cash.

The plan is to merge Coltel with Tigo Une, a joint venture between Millicom and EPM. Millicom is also interested in purchasing EPM’s stake in Tigo Une for a similar amount.

INTERNEXA

Backbone network operator Internexa is expected to invest up to 90bn pesos in fiber optics over the next three years, according to Forbes.

The state-owned company has been tasked by the administration of President Gustavo Petro with helping deploy fiber optics in remote areas of the country.

As part of the Connectivity to Change Lives program, the ICT ministry and Internexa announced a new agreement in July to connect 62,000 homes in 32 municipalities across Chocó, Nariño, Cauca and Antioquia departments.

The objective of the program is to extend connectivity to Colombia’s Pacific region and La Guajira in the north, reaching six departments – Nariño, Cauca, Valle del Cauca, Chocó, Antioquia and La Guajira – benefiting 175 municipalities, where connectivity penetration is below 12%.