Colombia. After nine rounds of bidding by the bidders, the four 80 Mhz blocks in the 3,500 band were awarded, worth $1.37 billion Colombian pesos. Each of the operators was assigned a block.
"It's a great achievement by the government. Of the four blocks auctioned, there was an increase of 29.2% in the reserve price, a further sign of the confidence that this process had. Between the high, medium and low bands, 82.5% of the total spectrum that was available was allocated, highlighting that the spectrum to launch 5G was acquired in its entirety. On February 1, 2024, the four operators will begin the deployment of the technology, after they carry out technical tests in January," emphasized ICT Minister Mauricio Lizcano.
The Tigo-Movistar Temporary Union acquired the first block, for a value of $318,306 million. The second block was awarded to WOM, for a value of $318.340 million. The third was for the Brazilian company Telecall, a new operator that arrives in the country, for a value of $318,333 million, and the last block was awarded to Claro, for a value of $411,384 million.
Thanks to this process, the country will have an investment of close to $28 billion in the next 10 years, that is, an average of $2.8 billion per year.
In the auction of remaining bands, for block 2 of the 2,500 MHz band, Claro bid for a value of $157,057 million, about $200 million above the reserve value.
More connectivity for rural areas
Through the Obligations to Do established in the auction, operators must promote the development of connectivity projects in rural, remote and vulnerable areas of the country, through the deployment of telecommunications infrastructure. This is in addition, and as another form of payment for the economic consideration of the use of the radio spectrum.
As a result, a total of 1,191 educational institutions will have Internet service for 20 years through fiber optics, benefiting 73,093 children in the country, to continue reducing the digital divide in the country. In addition, 4G coverage will be increased on 34 primary and secondary roads in the country, for a total of 700 km of better connectivity.
The Obligations to Do product of this auction are equivalent to an investment of $389,711 million, as follows:
Claro will have to connect 313 educational institutions, the Tigo-Movistar Temporary Union 217 institutions and install at least 32 base stations with 4G technology on primary and secondary roads. WOM will have to bring connectivity to 318 schools and 24 base stations with 4G technology on primary and secondary roads, while Telecall will have to connect 343 schools and 11 base stations with 4G technology on secondary roads.
"5G throughout Colombia is a bet for next year. We are very excited to take this step. In Chile there is a deployment of 5G, and the idea is to replicate here in Colombia the same work that has been done there. We will connect 77 new locations, representing more than 300 schools and 24 base stations with 4G technology on primary and secondary roads. We have a very strong commitment to deploy and provide state-of-the-art technology," said Ramiro Lafarga, CEO of WOM.
Minister Lizcano stressed that during the auction there was the accompaniment of the Comptroller's Office and the Attorney General's Office, which highlighted the transparency and security of the day. In addition, he concluded by assuring that "we are very proud and happy with this achievement, which represents greater connectivity for Colombians."
