Colombia‘s Bogotá city council has rejected a proposal to sell its 86.6% shares on Empresa de Telecomunicaciones de Bogota (ETB). All 15 council members voted unanimously against the sale July 24. ETB is one of the largest telephone operators in Colombia, with about 2 million lines, and is the first in subscribers for Internet broadband service, a segment that provides 34% of connections nationwide.
As RCR Wireless Americas published earlier, Bogota’s phone company is going through a difficult period and, the carrier has been trying to find a path to become profitable and more competitive.
Last December, ETB’s board proposed the sale of shares in order to try to “save” ETB from a losing market value. The move was prompted by the company’s inability to add value and make the necessary investments for its future. However, after the Bogota council began debating a proposal that would allow the city to sell part or all of its 86.6% stake, Bogota’s mayor changed her mind and announced a plan to avoid the sale. Earlier this month, the secretary of finance, Héctor Zambrano, said that there were other ways to enhance the company than privatization.
