Information Technology in Colombia

Telecommunications Infrastructure

1.1 Introduction

Colombia, like many of its Latin American neighbors, has been experiencing many changes recently in the state of telecommunications in the country.   In 1990 legislation was passed that allowed for the possibility of competition that only began to appear in 1994 when new services and players began to enter the market.

Currently, as a result of a World Bank funded restructuring program, telecommunications in Colombia is divided into distinct operational areas.  These separate responsibilities are a change from the previous plan in which the Ministry of Communications and Telecom handled operations decisions, while tariff regulation and policy planning fell to the Ministry of Planning.  Now, operations are under the domain of Telecom, policy-making is instituted by the Ministry of Communications, and the Comision de Regulacion de Telecomunicaciones de Colombia (CRT) handles all regulation aspects. (1)

Overall, Colombia's total telecommunications equipment market (including everything from telephone equipment to satellites) was valued at USD $555.2 million in 1996 growing to USD $ 600 million in 1997.  The market for telecommunications services was valued at USD $4.5 billion (excluding radio and television) and is predicted to grow at a rate of 30% per year through to the new millennium. (2) 

1.2 Telephones

The telephone system in Colombia offers 37 independent local carriers who control local calling areas.  All national and international long distance services are covered by Telecom which also serves the rural and under-serviced areas.   However, with the recent deregulation and privatization that is occurring in Colombia, Telecom's state run monopoly on long distance calls is ending.     

The following countries were chosen for comparison purposes: Venezuela, Peru, and Ecuador for geographical proximity, Argentina for demographic similarity, and the United States.  Also, whenever possible, comparisons are made to the Americas or to the world overall.

1.2.1 1997 Basic Indicators

                Population                                             GDP                                                         Main Telephone Lines

*1996 Data (3)

Some important facets to be noted in the above table:

       Colombia has a similar population size as Argentina, but a larger population than its neighbors Venezuela, Peru, and Ecuador.

        While Colombia has a greater GDP than all of the neighbors except Argentina, it has a lower per capita income than all of the comparison countries except Ecuador. 

        In addition to having a larger GDP than all countries except Argentina, Colombia also has a greater number of phone lines than all of the countries except Argentina.   Proportionally, Colombia's number of phone lines is at least double that of the other countries and is only slightly less than that of Argentina.

1.3 Fiber Trunks and Submarine cables

The Andean corridor has banded together to provide a Pan-American submarine cable to facilitate communications.  (Please see diagram below.) Already, Telecom has placed its undersea fiber optic cable (TCS-1) to connect to the US through the Taino Caribbean, Americas, and Columbus II cables as a way to extend digital services to Mexico and Europe.

Service on the TCS-1 AT&T Trans-Caribbean fiber optic cable that links Colombia to Florida, Puerto Rico, the Dominican Republic, and Jamaica is used about 70% for traffic to the US. (4)

In the Fall of 1998 ANDITEL of Bogota selected US company World Access Inc to supply equipment to build a new wireless trunking network in Colombia.  This new master transport communications infrastructure will work with ANDITEL's trunking network to be used by government agencies and large organizations as well as enabling ANDITEL customers to communicate remotely while traveling in any major Colombian city.
 
 

1.4 T1, ISDN, and other high speed services used by business
 
Overall, 71% of Colombia was linked by telecommunications as of September 1995 with more than 800,000 households and 500,000 businesses serviced.  (5)   There are estimates that of the total installed lines, 70% are used for homes while 30% are commercial subscribers.  Digital switching equipment is used for the majority of the local network and around 90% of the lines are available to provide equal access to allow for identical interconnection by all connecting carriers.  However, only 10% are able to handle ISDN compatible services.

1.5 Mobile, PCS, and Cellular Systems

Of all of the Latin America countries, Colombia was the first to offer cellular digital technology.  By January of 1995 Colombia had broken almost every wireless industry growth record for service in Latin America through, reaching a penetration rate of .25%.

In the realm of mobile and cellular communications, five companies: COMCEL, CELUMOVIL, COCELCO, CELCARIBE, and OCCEL have established a presence in Colombia.  Cellular telecommunications continues to grow at a rapid pace with total billing for the first quarter of 1998 at double what it was for the first quarter of 1997.  During that time period the total number of users increased by 159% from 584,801 to 1.51 million. (6) Current usage charges are USD .50 per minute and are expected to stay at this level until at least after the year 2000. (7)

1.5.1 Colombia's Cellular Communications

The International Telecommunications Union estimates that in 1996 there were 523,000 cellular mobile subscribers and in 1997 there were 1,265,000 cellular mobile subscribers.  Overall there are 35 mobile phones in use per 1000 inhabitants and cellular phones subscriptions represent 19.2 % of total telephone subscribers.  (8)
 
 

1.5.2 Cellular subscribers 1996
 

*1995 Data (9)
 

1.6 Satellites, Earth Stations, Teleports, and Microwaves

Colombia needs an infrastructure and satellite system to support its cellular communication system.  Currently, domestically there is a nationwide microwave radio relay system as well as a satellite system with 11 earth stations.  Internationally Colombia links with two Intelsat (Atlantic Ocean) satellite earth stations.

Colombia is connected to the US, Chile, and Venezuela through a TELEPORT, IBS/INTELSAT service in Bogota that provides high speed voice, data, video, and fax transmission for point-to-point connections through a COMSAT partnership.  (KPMG 41)  Also, videoconferencing is available with low-speed video transmissions to and from Colombia, and e-mail and databases are available through Telemailbox and the Internet.

Telecom is the signatory for both INTELSAT and INMARSAT in Colombia.  Two INTELSAT Standard-A earth stations provide TDMA/DSI international and domestic multiplex channels at Choconta while in Bogota there is a INTELSAT standard F-a antenna.  Choconta also has a standard B, and standard F-3's are located in San Andres and Leticia.

Additionally, there are 62,500 intercity and long distance channels (10,000 microwave/39,000 digital), as well as 6,500 km of microwave transmission lines
 
 

1.7 Diffusions of Private Networks

Colombia is experiencing a demand for Wide Area Networks and Local Area Network interconnection that has created growth in the data communications services market.  Through privatization of the long distance market, local carriers such as Empresa de Telecomunicaciones de Bogota SA (ETB) are now able to provide voice and data services in both the international and domestic markets.  ETB recently contacted with Globecomm Systems of the United States to design, supply, and install an earth station in Bogota that will enable ETB to provide data transmission for LAN and WAN systems.  (10) 

1.8 Domestic Telecommunications Companies

While there are 37 independent local carriers, the market centers around only four that carry a substantive amount of telephone traffic: Empresa de Telefonos de Bogota (ETB) 1,610,520 lines, Telecom 778,900 lines, Empresa de Telefonos de Medellin (EPM) 731,035 lines, Empresas Municipales de Cali (EMCALI) 415,867 lines. (11)

Also, there are currently two companies, Telecom and Edatel, that are considered to be extended local telephone operators covering non-local domestic areas.

Finally, Telecom is the sole national and international long distance operator in the process of being deregulated while the long distance industry is privatized.  This current system of local, extended local, and national/international domestic companies stands to greatly change in the advent of privatization.

1.9 Important Dates Relating to Columbia's Telecommunications Infrastructure
 

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Author: Heather Batyski

Last Update: December 18, 1998