TALK & TEXT
The implementation of 4G and greater broadband penetration are two of the main issues in the telecommunications segment.
The main focus that we have in this administration is to make the company profitable while continuing to grow. By that, I do not mean that we have not been profitable in the past, but this year we have a strong focus on making the operation more efficient. To reach our goals, we are focusing on many initiatives: the first one is improving our customer service strategy. We are working heavily on streamlining the processes in which we interact with our customers by taking into account their specific needs. With the second initiative we are focusing on launching our brand new 4G LTE network. There are many challenges with this launch, as Colombia is a market where one operator has approximately 80% of the mobile voice traffic. It is difficult to get customers from that operator because of its market power; UNE has to be very innovative to get around this situation. In that direction, we have worked together with international experts in order to launch the LTE commercial operation by identifying the connectors in social networks, letting them try our product for four months so they would talk about our services. This was very successful.
I believe ETB is strong in many areas with a huge potential for growth. Although it is mainly concentrated in Bogotá, the company has corporate services around the country. We are probably the biggest provider in the country in corporate services, serving the largest companies in Colombia; however, our main retail market is still Bogotá. The capital represents 45% of Colombia's GDP regarding telecommunications. ETB's main product and the company's revenue driver is in fixed lines. Broadband is becoming very important and that is where I see the most potential. We have 15% of the broadband in the country, so we have a long way to go. ETB doesn't have its own TV service, although it has a strategic alliance with Direct TV; therefore, ETB is planning to launch its own TV service with a huge potential of revenue growth. Regarding the bidding of 4G, all the telecommunications operators have gotten involved in a discussion about the dominant position of one of the players, which has impacted the market significantly. Three months ago, no one talked about this process and today the 4G discussions has become a main issue for the government, congress, media, and customers.
In 2012, we invested around $450 million, and that's the average annual amount Telefónica invests. I truly believe that the IT industry is one of the key investment industries in the national economy, along with very important industries for the country such as energy and mining, and we have to keep in mind the role IT plays in making economies more attractive and dynamic. Today, Latin American markets do not differ much in terms of the level of advancement and application of new technology. The government of Colombia knows about the role IT plays in the development of the country and that is very beneficial for the industry and economic development. In recent years, Telefónica has become a leading firm in terms of innovation. For example, three years ago we launched a new project at the regional level to encourage entrepreneurs in the IT industry to come forward with their ideas, expose them before a jury, and perhaps win some financial support for their development. Telefónica launched this project specifically in Colombia, and today we are offering it in other markets as well. Overall, Colombia represents a very important operating market for the company in terms of investment and economic growth, as the country offers huge business opportunities with clear rules for potential investors.
TALK & TEXT
TABLE OF CONTENTS
Interview
General Tito Saúl Pinilla Pinilla, Commander, Colombian Air Force (FAC)
TBY talks to General Tito Saúl Pinilla Pinilla, Commander of the Colombian Air Force (FAC), on the department's collaboration with foreign countries and drive to protect the security of the country and region.
read articleInterview
Luz María Jaramillo, Country Managing Partner & Tax Partner, Ernst & Young Colombia
TBY talks to Luz María Jaramillo, Country Managing Partner & Tax Partner of Ernst & Young Colombia, on taxation in free trade zones, hurdles for foreign companies, and reforms to the tax system.
read article