BOGOTA, Colombia-The Colombian telecommunications sector has experienced growth over the last year despite the 1998-1999 economic recession. Although expectations that the sector would boom in 1999 were overshadowed by economic problems, several government initiatives promise to pave the way for future growth.
The Colombian government passed in late 1999 a new law authorizing PCS licenses. For licensing, the country will be divided into three service areas, and each area will have a maximum of two operators. The concessions are open to the private sector, strategic investors and service operators. The government expects to raise between US$150 million and US$300 million from the sale, which is to begin in first-quarter 2001.
In addition, competition in cellular services is strong, and prices are decreasing.
Cellular services in Colombia became fully operational in 1995. As of the end of 1999, there were approximately 2 million cellular subscribers in Colombia. The cellular sector continued to grow during the economic recession-primarily due to calling party pays and prepaid programs-albeit at a much slower pace than in other markets in the region.
B-band operator Celum