Communications in Colombia

Communications In Colombia

Since being liberalized in 1991, the Colombian telecommunications sector has added new services, expanded coverage, improved efficiency, and lowered costs. The sector has had the second largest (after energy) investment in infrastructure (54 percent) since 1997. However, the economic downturn between 1999 and 2002 adversely affected telecommunications. During this period, Colombia’s telecommunications industry lost US$2 billion despite a profit of US$1 billion in local service. In June 2003, the government liquidated the state-owned and heavily indebted National Telecommunications Company (Empresa Nacional de Telecomunicaciones—Telecom) and replaced it with Colombia Telecomunicaciones (Colombia Telecom). The measure enabled the industry to expand rapidly, and in 2004 it constituted 2.8 percent of gross domestic product (GDP). Telefónica of Spain acquired a 50 percent share in the company in 2006.

As a result of increasing competition, Colombia has a relatively modern telecommunications infrastructure that primarily serves larger towns and cities. Colombia’s telecommunication system includes INTELSAT, 11 domestic satellite Earth stations, and a nationwide microwave radio relay system.