Telecom Regulation: License Design

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4Q 2013 | IN-1017232

 

Claro and Movistar to Lose Infrastructure in Colombia

NEWS


A few weeks ago, the Constitutional Court of Colombia upheld the State Comptroller’s rule that required Claro and Movistar to surrender their cellular network equipment on top of their spectrum when their licenses expire in March 2014. Even though they inherited the network, previously owned by the former public monopoly, in 1994, they did invest US$3.6 billion to modernize it over the past 20 years. In fact, the current technologies on the network, from GSM to HSPA+, have all been deployed by them.

While the Colombian government might appear unreasonable, this had actually been stipulated in the license agreement the two mobile operators signed in 1994. Moreover, their concessions had already been extended for 10 years in 2004. On the other hand, Tigo and Une-EPM are safe, because they have been licensed under different conditions and have built their infrastruct...

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