The company, Tigo’s parent company, seeks to transform these operations into a regional platform with greater financial capacity, more robust infrastructure and better conditions to compete in the telecommunications market.
Colombia occupies the center of that strategy. Marcelo Benítez, CEO of Millicom, announced investments by COP$8.5 trillion, equivalent to about US$2,665 million, over the next four years. The figure makes the country the most important strategic bet of the company since its creation, 35 years ago.
The plan is not limited to incorporating Movistar’s clients and assets. The company aims to modernize its networks, expand mobile coverage, accelerate the deployment of 5G and strengthen fiber optic infrastructure.
The goal is to take advantage of economies of scale to respond to the growth in data consumption and improve the user experience.
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Colombia concentrates Millicom’s largest investment
The integration of the businesses acquired from Telefónica represents an opportunity to expand Tigo’s presence in strategic markets and increase its investment capacity. According to Benítez, operating on a larger scale will allow the execution of infrastructure projects that companies could not undertake individually.
The magnitude of the Colombian commitment stands out within the regional plan. Millicom also announced investments of US$600 million in Uruguay and US$900 million in Ecuadorboth for the next four years. These commitments reflect a strategy that combines commercial expansion and technological modernization.
In Colombia, the company estimates that data consumption grows between 13% and 15% annually. The expansion of digital services and the advancement of artificial intelligence could further increase the demand for connectivity, forcing operators to strengthen their networks.
This trend is also related to the technological investments in Latin Americawhere digital infrastructure takes on a central role in business competitiveness. For Millicom, the priority will be to convert the scale gained through acquisitions into operational capacity and improved services.
The growth is also reflected in its customer base. According to Benítez, the group is approaching the 60 million mobile users and 6 million fixed service customers after purchases made in the region.
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5G, fiber optics and coverage: the priorities in Colombia
The Colombian investment plan contemplates four main lines of work. The first is to expand the capacity of existing networks to handle the increase in data traffic over the next four or five years.
The second is to extend the coverage of 5G to 80% of the main Colombian citieswhich would practically double the current joint coverage of Tigo and Movistar, according to the estimates presented by the executive.
The third priority is the installation of more than 1,200 connectivity siteswith which the company hopes to benefit nearly two million Colombians who currently lack service or only have one operator. The initiative seeks to expand the alternatives available to users and reinforce the company’s presence in areas with less coverage.
The fourth axis aims to expand the capacity and reach of fiber optics, essential infrastructure to transport data and sustain the operation of telecommunications services.
The execution of these investments will be decisive for the integration to translate into perceptible improvements. The connectivity infrastructure Not only does it allow us to expand coverage, but it is also key to responding to new digital needs.
In parallel, Millicom will have to compete with consolidated operators, especially Claro, in a market where coverage, quality of service and connection speed can influence consumer decisions.
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The integration of Movistar seeks more than just a brand change
For Millicom, the challenge does not end with the acquisition of assets. The company needs to integrate operations, take advantage of available infrastructure and demonstrate that its greater scale can translate into a more competitive offering.
Benítez maintained that Movistar customers should not experience changes in their services during the transition to Tigo. The company seeks to support the new commercial identity with improvements in products, service and store availability, rather than simply modifying the brand.
The executive also recognized that improving the experience of current customers will be essential to gain market share. In a competitive environment, retaining users and raising service quality can be as important as attracting new consumers.
Regional expansion offers a foundation for that strategy. Investment commitments in Colombia, Uruguay and Ecuador aim to strengthen networks and sustain the growth of digital demand. However, the results will depend on the execution of the projects and the ability to convert infrastructure spending into concrete improvements for users.
Millicom’s commitment, therefore, goes beyond consolidating the businesses purchased from Telefónica. Colombia will be the main test of whether the integration can generate scale, expand connectivity and strengthen Tigo’s competitive position in Latin America.
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Source: revistamercado.do
