Telefónica Movistar and DIRECTV reached an agreement through which Movistar acquires and assumes the operation of DIRECTV's Internet services in Colombia.
The operation includes the transfer of network infrastructure and radio frequency concessions, specifically, spectrum in the 2.5 GHz band and about 200,000 Internet clients, 60% of them with satellite television subscriptions.
The acquisition, the amount of which was not disclosed by the parties, is still subject to the authorization of the Colombian regulatory authorities.
"This operation, which strengthens Telefónica Movistar's network infrastructure, will not only benefit the clients of the two companies involved in the business, but also the users of the four Mobile Virtual Operators (MVNOs) that Telefónica Movistar hosts on its network. as well as to the clients of competitors who make use of it through National Automatic Roaming," said a joint press release.
Fabián Hernández, CEO of Telefónica Movistar Colombia, said that this agreement “ratifies the company's commitment to the country and will allow us, on the one hand, to continue consolidating our presence in the national market with the acquisition of DIRECTV's Internet infrastructure. and, on the other hand, to strengthen our operation by having additional spectrum to support the growth of mobile data traffic that we have been observing in recent months, especially after the start of the pandemic."
Movistar estimates that during 2020 the use of its fixed network increased by 98% and the consumption of mobile data by its customers grew by 87%.
Telefónica, with coverage in 266 Colombian municipalities through the fixed broadband service and in 965 mayors with the 4G-LTE mobile network, generated revenues of 5.36 billion Colombian pesos in 2020, about 1,437 million dollars.