Movistar and Tigo today announced the signing of a Memorandum of Understanding (MDE) to explore the possibility of sharing their mobile access network, under a new shared ownership infrastructure company.

(See: MinTic: 41.3% of households with internet have fiber optics).

If this agreement is completed,The company can benefit more than 35 million mobile users, in addition to generating more resources to expand reach and optimize service quality.

(See: Millicom and EPM to hold negotiating table due to Tigo situation).

“This announcement follows international best practice and is in line with similar agreements that the Telefónica Group has entered into in the UK, Germany, Peru and Mexico with other operators, with the aim of generating operating efficiencies and accelerating the evolution of network technology. The agreement also responds to Colombia’s need to guarantee the sustainability of its connectivity offerings, but to do so through a business model that encourages competition.”, says Fabián Hernández, president of Telefónica Movistar.

Meanwhile, Marcelo Cataldo, president of Tigo, indicated that with this alliance they are trying to mark a milestone for the sector in Colombia and Latin America. “In Colombia, the sustainability of the telecommunications sector is at stake. This type of initiative, on the one hand, will improve network quality for some 35 million users; on the other hand, it will enable us to activate the infrastructure the country needs to continue closing the digital divide and prepare for the arrival of future technologies.”.

(See: The government invites the Mayor of Medellín to evaluate the Tigo-UNE case).

According to the two companies, If the operators manage to unify their networks, national coverage will be strengthened in around 10% of the area. Pursuant to the MoU, the two companies will continue to be competitors in the provision of retail and wholesale telecommunication services and will maintain their business, independence and strategic and commercial autonomy.

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