The Superintendency of Industry and Commerce (SIC), Colombia’s authority regulating industrial and commercial activity, has granted conditional approval for the integration of Movistar and Tigo’s operations in the country. This approval marks a significant milestone in the consolidation of Colombia’s mobile telecommunications market and lays the groundwork for the creation of a new operator projected to control approximately 48% of the country’s mobile customer base, positioning it just behind market leader Claro.
The SIC’s decision does not automatically conclude the merger. Rather, it confirms the regulatory feasibility of the operation while imposing a series of compliance obligations to ensure that competition, service quality, and consumer interests are preserved. Pending steps include the acquisition of the Colombian government’s 32.5% stake in Colombia Telecomunicaciones (ColTel), which operates Movistar, and Millicom’s progress in acquiring EPM’s stake in the UNE–Tigo partnership. The EPM sale process has already commenced, with five million shares offered at 2.09 trillion pesos (approximately US$550 million), or 418,741 pesos (around US$110) per share.
The regulator’s approval comes with strict conditions to maintain a fair competitive environment. The merged company must preserve existing commercial plans, ensure nondiscriminatory wholesale access for mobile virtual network operators (MVNOs), and comply with protocols for corporate governance, technical separation of sensitive business areas, independent audits, and semiannual reporting on contractual changes, coverage, and service quality, particularly in rural regions. Additionally, the new entity is required to limit its competition to Claro, ensuring smaller operators like Wom, which holds a 7% market share, retain viable market participation. Fees charged to Wom for using Tigo’s network in areas without its own infrastructure must also be reduced by 12% to 24%.
The integration of Movistar and Tigo is set to reshape Colombia’s competitive landscape. Before the merger, Claro held a commanding market share, while Movistar and Tigo ranked as the second and third operators, respectively. By combining their operations, the two companies will leverage economies of scale in network infrastructure, spectrum, and services, potentially increasing their capacity to invest in technologies such as 5G, expand coverage in underserved areas, and offer convergent fixed-mobile packages. For consumers, this could translate into improved signal quality in rural regions, more competitive pricing relative to Claro, and a broader, more integrated product portfolio. Movistar has already noted that operational and commercial gains have been driven by a shared mobile access network with Tigo, demonstrating early benefits of collaboration, Colombiaone reported.
However, concerns remain. The concentration of nearly half the market in one entity, alongside the leader, could weaken competition, potentially leading to higher prices, reduced innovation, and fewer incentives to improve customer service. The SIC’s approval is just one step; full integration requires ongoing regulatory oversight and the completion of corporate, financial, and operational arrangements, including the government stake acquisition and subsidiary reorganization.
Strategically, Movistar and Tigo aim to strengthen their position against Claro’s dominance and prepare for future challenges, including 5G expansion, growing demand for data services, and the pursuit of new revenue streams. The success of this strategy, however, depends on demonstrable consumer benefits, robust competition, and sustained investment.
Despite the challenges, today’s regulatory approval represents a decisive step toward transforming Colombian telecommunications. The merger paves the way for a new market player with a significant role, raising ongoing debates about the balance between scale and investment on one hand, and competition and market plurality on the other.