The mixed fortunes of WOM Colombia, the country’s fourth largest operator, have been at least slightly boosted by news of an acquisition that will allow it to continue to operate.
The company has been acquired by SUR Holdings, a group of businesspeople and investors from the United States and the United Kingdom with experience in the telecommunications and technology sectors.
This isn’t just good news for the beleaguered operator but also for competition in the market. As Mauricio Lizcano, Colombian Minister of ICT, points out, this means there will continue to be at least three players in the market depending on when and whether any integration between Tigo and Movistar goes ahead. The other big name is Claro.
According to local press reports, the minister has revealed that the new investor has a three-year grace period on spectrum payments, which will be paid off with interest from 2029. Payments for the deployment and auction of 5G remain as normal.
Back in April 2024 we reported that the Colombian unit of WOM had followed in the footsteps of its counterpart in Chile and filed for bankruptcy protection to pay its debts.
Both versions of WOM were created by Novator Partners, a British private equity investment firm based in London. It's not clear where this new acquisition leaves Novator. Nor have the amount or details of the transaction been disclosed.
As the America Economia news service reports, in recent years, WOM Colombia has invested more than US$1 billion in the country's telecommunications sector, enabling the deployment of more than 5,100 antennas and the opening of 475 stores nationwide, and offering improved coverage, particularly in rural areas.
However, it is still some way behind the other players in the market; an estimate of over 7 million subscribers as of January 2025 still leaves its market share in single percentage figures compared to its three competitors.
