DIAL G FOR GROWTH
A number of firms compete in Colombia's dynamic telecommunications sector, focusing on innovation in technology to gain competitive advantage.
We strive to bring the latest phones to our customers, or to provide timely customer service for repairs, and we were also the first to sell unlocked phones. The industry over the past two or three quarters has grown by 17%. It is a highly concentrated market; in fact, the second most concentrated in the world. And while there are challenges, I think that, over time, we will succeed in bringing in more competition. We will achieve this through a greater focus on the customer. During the past year, customers have made it clear that they want better services. Data traffic accounts for about 60%-70% of our revenue, and I think that it has to be the focus for the future. However, we need to bring more affordable smart phones to the market. I expect the sector to grow by between 5% and 8% in 2014.
ETB has 129 years of history and has always been a highly innovative company—we have been evolving ever since our first day, and the best example of our success in such a competitive industry is that we are one of the leading companies in Colombia. We should keep in mind the importance of Bogotá for Colombia; it represents 25% of GDP. As part of our strategic plan for the next five years, we are pushing innovation and investment to the forefront and plan to replace all our lines in Bogotá with fiber-optic infrastructure. Today, more than 200,000 households in Bogotá already benefit. And by the end of the year, we will have covered between 800,000 and 1 million households. We have received awards both nationally and internationally, which I believe boosts our already established credentials. However, the greatest accolade we have received is the current condition of our company; whereas two years ago it was up for sale and virtually at its end, today we proudly observe its solid development. This is a company that pioneers technologies and we see a bright future ahead of us.
We launched a 4G LTE network where we have about a 70% market share of LTE users in Latin America. We have also increased our ranking in brand awareness from fourth in the market to second. Were we to describe Colombian customers, we would first take into account disposable income; it's much lower than in many other countries. I believe that Colombia still has a problem in the telecommunications sector, which is concentrated in the mobile voice sector. Ultimately, telecommunications will split into two different sectors. On one hand you have one massive segment, the residential market, where growth is limited by GDP and the adoption of technology, which cannot have very high growth rates. And on the other you have the corporate segment in which the modernization of the state and private industry is lagging compared to other countries.
DIAL G FOR GROWTH
TABLE OF CONTENTS
Inside Perspective
María Ángela Holguín Cuéllar, Minister of Foreign Affairs, Colombia
TBY talks to HE María Ángela Holguín Cuéllar, Colombia's Minister of Foreign Affairs, on the strengths of international alliances, trade relations with the US, and safeguarding the environment for future generations.
read articleInside Perspective
The Right Honorable Nicholas Clegg, Deputy Prime Minister, United Kingdom of Great Britain & Northern Ireland
The Right Honorable Nicholas Clegg, Deputy Prime Minister of the United Kingdom of Great Britain and Northern Ireland, on progress made in a growing bilateral relationship.
read articleFocus: The Valle del Cauca Department
Cali For Ya
The Valle del Cauca, or Cauca Valley, is the country's gateway to the Pacific, boasting the largest port, at Buenaventura. The region's capital, Cali, is also a heavyweight in terms of GDP, yet lingering problems with violence are holding back development
read articleInterview
Martha Juliana Silva Ricaurte, Founder & President, SILK Banca de Inversión
TBY talks to Martha Juliana Silva Ricaurte, Founder & President of SILK Banca de Inversión, on Bogotá's transportation infrastructure, foreign investment in Colombia, and the private equity industry.
read articleInterview
Rodolfo Ramírez, President and General Manager for Colombia & Ecuador, PPG Industries
TBY talks to Rodolfo Ramírez, President and General Manager for Colombia & Ecuador, PPG Industries, on management strategy, competition, and the legal and regulatory framework in Colombia.
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