Bogotá telco ETB concludes US$20mn settlement to resolve 13 legal disputes with Claro

Bogotá-based telecommunications company ETB concluded an agreement with América Móvil's Claro under which the former will pay 90bn Colombian pesos (US$20.7mn) to settle 13 legal disputes that have been dragging on for nearly 20 years.

“This is an important achievement for ETB because it puts an end to years of litigation with the costs that this entails. It avoids the risk of an embargo that could reach an approximate sum of 1.2tn pesos and it reestablishes commercial relations, which will allow our company to generate new income,” ETB president Alex Blanco said in a press release.

According to a corporate presentation by ETB in late November, the agreement has opened the door to new business between the companies, such as commercial contracts for the leasing of poles, dark fiber and last-mile services.

The disputes that began in 2006 were related to differences in the way interconnection charges were calculated. While the signed contracts referred to the actual minutes charged, the subsequent resolutions of regulator CRC referred to rounded minutes.

The two companies agreed that ETB would pay the 90bn pesos in four half-yearly instalments.

The agreement, concluded on December 12, was filed this week with the council of state. 

The first disbursement will be made six months after approval by the council of state.