Ministry Doubts Case for Fourth Mobile Operator

The appearance of a fourth mobile operator in Colombia is unlikely, given the current number of operators and the particular companies that are interested in Colombia Móvil (Ola), according to a report commissioned by the communications ministry.

If Ola eventually merges with América Móvil's Comcel unit or with Telefónica's Movistar, be it through the unexpected entry of one of these firms in Ola's partner search or by a posterior acquisition, international operators would be interested in carving out a niche as Colombia's third mobile operator, the report concludes.

But all three companies that have decided to go through with the Ola bidding process are foreign companies with no mobile presence in the country. Assuming Ola gains strength with its new partner and that it keeps acquisition moves from AMX and TEM at bay, there is little scope for a number-four player.

Furthermore, that Telefónica and América Móvil are already firmly entrenched in the Colombian market, and that the PCS license Ola won in 2003 provoked no international interest, add to the likelihood that Colombia's mobile market will not see a fourth operator any time soon, according to the report.

BNamericas.com"

Posted to the site on 8th May 2006