Building lifelines
COMPETITION IS THE RULE IN THE COUNTRY'S TELECOMMUNICATIONS SECTOR AND THE GOVERNMENT SPONSORS VARIOUS PROJECTS AIMED AT PROVIDING ACCESS IN RURAL COMMUNITIES

Angela Montoya Mora Minister of Communi-cations

The Colombian telecommunications sector accounts for approximately 3% of GDP, which indicates that in a country of 41 million people there is a huge market ripe for development. The sector has been made even more attractive by the fact the government is providing incentives aimed at expanding the existing network to reach all areas of the country and at developing an information-driven society. “Colombia has a dynamic communications sector. Today, the country provides fixed, mobile and advanced telecommunication services in an environment of growing competition among public, private domestic and foreign operators. There is a huge market to develop concerning all types of services and we believe that we now have the necessary conditions for this development,” Communications Minister Angela Montoya Mora says.

Several government-sponsored projects are currently underway in the Colombian communications sector. Bidding for a third mobile telephone operator’s PCS license began in September and runs until December. Other investment opportunities in the sector include activities in the government’s Compartel program, which is aimed at providing access to telecommunications in rural areas.
“In the two years since the Compartel programs began, we have established rural community telephone points in more than 6,500 towns and villages of 300 inhabitants or more and more than 1,000 community Internet access centers, making it one of the most ambitious social telecommunications programs in Latin America, “ says Ms. Montoya. Compartel now plans to provide $100 million to support operators who can develop 5,000 more of these rural community telephone points and about 500 new voice and Internet access centers.
“The focus that we have designed for this rural development program is unique and is attracting international operators. And no wonder, considering the amount of money the government chips in for these projects, anyone can make a profit,” Ms. Montoya notes.

BellSouth is a clear example of a U.S. company making good in the Colombian telecommunications sector. After losing its original bid for a wireless telephony license, Bellsouth purchased part of Celumovil, the country’s first wireless operator. “We had an interest in Colombia for a long time. We felt it was important for a multinational company with a Latin American portfolio and a Latin American strategy to be present in Colombia,” recalls BellSouth Colombia president Larry Smith. “So after purchasing a part of Celumovil in July of 2000 we purchased 100% of Cocelco, which gave us two licenses for the entire country. Today we are still the only national provider of cellular services in all Colombia, which is a good advantage for us because we can provide consistent service all over the country,” Mr. Smith notes. Now, with its feet firmly planted in Colombia, BellSouth has managed in just over a year to turn the South American nation into the company’s fourth largest property, and one of the most important for BellSouth International, with considerable investment but with considerable potential for growth as well.

INTERNET access centers are being built in thousands of villages thanks to Compartel.

“Our contribution to Colombia’s social development is really one of the pillars of BellSouth’s vision,” Mr. Smith adds. “We are a leader in this area without a doubt. BellSouth Colombia has donated 500 or so computers to projects that the first lady has to help kids with education. We sponsored a project to provide artificial limbs for children injured in landmine explosions, and we have handed out more than 700 scholarships to get kids who were working to support their families back into school.”