Movistar and Tigo, two mobile network operators in Colombia, have announced signing a Memorandum of Understanding (MoU) to explore the possibility of sharing their mobile access networks under a new jointly owned infrastructure company.
Network Sharing Agreement Benefits Mobile Users
According to the statement, the potential agreement holds promise for over 35 million Movistar and Tigo mobile users. By sharing their networks, the companies aim to operate more efficiently, optimize spectrum usage, and generate additional resources for expanding coverage and improving service quality. Furthermore, this collaboration would ensure compliance with all regulatory obligations related to network access, usage, and exploitation.
Also Read: Telefonica Movistar Surpasses One Million FTTH Subscriptions in Colombia
Advancing Government's Connectivity Goals
The primary beneficiaries of this agreement are the people of Colombia. Aligned with the goals set by the Colombian Government to achieve internet coverage for 85 percent of the population, this partnership will significantly boost connectivity, access to information, and digital services. These elements are crucial for improving education, healthcare, financial inclusion, and entrepreneurship for the country's 50 million citizens.
Strengthening National Coverage and Service Quality
If the network-sharing agreement is realized, it would strengthen national coverage in approximately 10 percent of the territory, benefiting over 700 municipalities across Colombia. According to estimates by the companies, the consolidated network would optimize the quality of mobile services in these areas. Furthermore, the new infrastructure company resulting from this collaboration would serve as a platform for the deployment of advanced mobile technologies, such as 5G.
Also Read: Millicom (Tigo) To Build New Fiber Network at Bioceanic Corridor
Maintaining Competition while Sharing Networks
Both Movistar and Tigo affirm that they will continue to compete in providing retail and wholesale telecommunications services. The companies will maintain their independence and autonomy in terms of business strategies and commercial activities while leveraging the benefits of network sharing.
International Organizations Praise Network-Sharing Initiatives
The initiative has garnered positive attention from international organizations, including the OECD, the Inter-American Development Bank (IDB), the World Bank, and the International Telecommunication Union (ITU). These organizations view network-sharing initiatives as drivers of competition, investments, and deployment, leading to improved service quality and coverage at affordable and sustainable prices.
Also Read: Xavier Niel Increases Stake in Millicom International Cellular to 24.18 Percent
Regulatory Evaluation and Approvals Required
Before the development of the unified network can proceed, it requires evaluation and approval from the Superintendence of Industry and Commerce (SIC). Additionally, if the agreement materializes, respective approvals from the Ministry of Information and Communication Technologies will also be necessary.
The potential partnership between Movistar and Tigo represents a significant step forward in the evolution of mobile networks in Colombia.
