The two largest telecom groups operating in Latin America, Telefónica and América Móvil, are accelerating the roll-out of their fiber networks in central Colombia.
The third main fixed broadband provider in Colombia, Telefónica’s Movistar plans to push forward the interiorization of its fiber in the country while it ramps up its fiber wholesale JV with US equity fund KKR.
The company announced that its fiber network is being expanded in the Cundinamarca cities of Mosquera, Funza and Madrid to reach further 48,000 homes and 5,000 businesses in the region, for a 90,000 homes total.
The subsidiary said it expects to invest over 10bn pesos (US$2.62mn) and to generate more than 2,800 jobs this year in Cundinamarca.
Currently, the telco’s fiber network covers around 41% of homes and businesses in the three cities (homes-passed, not necessarily clients), and the plan is to take that up to 68% by end-2022.
Nation-wide, Telefónica aims to reach 4.3mn homes passed with fiber in 90 localities by end-2024, part of which is expected to come through its fiber wholesale JV with equity fund KKR, created last July.
Beyond the benefits in speeds and signal availability, Telefónica said fiber equipment consumes seven times less energy per client to transmit compared to copper.
Telefónica's revenues in Colombia, whose operations fall under the group’s broader HispAm unit, grew by 5% year-over-year in 2021 to 1.31bn euros (US$1.42bn). The company ended the year with 20mn Colombian subscribers.
In Q4, Telefónica posted 343mn euros in Colombian revenues, an increase of 8.9% year-over-year, driven by postpaid accesses growth, digital sales in the fixed business, and a 52% increase in fiber-to-the-home (FTTH), the group reported.
CLARO
Market leader with a 38.6% fixed broadband share as of September, América Móvil’s Claro Colombia extended its fiber network to 6,500 homes and businesses in the touristic municipality of Valle del Leyva, Boyacá department.
According to Claro, the deployment reached 12 sectors of Villa de Leyva, including its historic zone. The telco also said it is strengthening the capacity of its 4G network in Valle del Leyva.
The company’s fiber network already reaches Tunja, Duitama, Sogamoso, Paipa and Chiquinquirá, in Boyacá, while its 4G signal is reportedly active in the central areas of all Boyacá municipalities.
According to the latest data from regulator CRC, Colombia ended September with 8.25mn fixed internet subscriptions, up 560,000 in one year, but almost flat sequentially.
Of the total, FTTH accounted for 21.3%, up from 16.7% in September 2020.